Apple decrease online price of iPhone 5S to clear stocks

Apple decrease online price of iPhone 5S to clear stocks; ties up with Amazon, Flipkart and Snapdeal
Apple Just ahead of the launch of the next iPhone, Apple is offering a price cut on its outgoing flagship device. It has tied up with online retailers Amazon, Flipkart and Snapdeal to offer discounts on the iPhone 5S in a move that's sharply contrarian to the strategy of brands such as Samsung and Sony that are fighting to ensure price parity between online and brickand-mortar stores.

Apple is offering an extra Rs 1,500-2,000 in margins to online retailers to liquidate 5S stocks ahead of the new phone launch. This, combined with the usual discounting by e-commerce sites, has made the 5S about Rs 8,000 cheaper online than in brick-and-mortar stores. That's probably the widest price gap currently for any smartphone or electronic gadget, according to three of Apple's top trade partners. Tried & Tested Strategy The 16GB iPhone 5S is available online at Rs 38,000-39,000 while it costs Rs 46,000-47,000 in stores. The idea is to clear out stocks of the 5S, which will get a substantial downward price revision when the new flagship iPhone model is launched, trade sources said. It's a strategy Apple routinely adopts in the US and Europe. Apple has scheduled a global event on September 9 in Silicon Valley that's widely expected to be the unveiling of a new largescreen iPhone and smart watch concept. Emails sent to Apple, Amazon, Flipkart and Snapdeal did not elicit any response as of press time. "Apple's sudden focus on e-commerce sites has become a nightmare for us," said the chief executive officer of a leading cellphone retail chain, requesting anonymity. "We have even told them that if the situation continues, we may stop picking up stocks of iPhones since our sales have suddenly taken a hit."

Source : http://articles.economictimes.indiatimes.com/

Dated: 04-09-2014

Share on Google Plus

About Amora

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.