Apple has relaunched its 3G iPhone model in India with a lower price tag of Rs 20,000. The first reaction from my friends was again the company had introduced old model and no one will buy 3G when iPhone 4 is officially available. To think of it - I feel its the smart move to capture the mid-market segment and increase Apple's market share in India.
Though Apple products have created a niche in the market and many Indians already have or can buy these products, Apple still has a long way to go in India. Many are buying iPhones, iPads and other gadgets from overseas, but the fact remains that Apple does not have a definitive market share in India compared to more established Nokia, Sony, Samsung and LG. All electronic brands in some way for the other have to capture the Indian middle class, which will give them volume in this growing economy. Last year 3G telephony was introduced in India, with service providers now juggling to capture this market. Its a shrewd move from Apple to relaunch 3G phone when additional services are available and customers are willing to pay. It can leverage on the existing brand awareness and aspirations to grow in this market.
On a broader perspective Indian and MNCS are trying to tap the growing middle class consumer with innovative products, services and marketing initiatives. Bottom of the pyramid theory, coined by late C K Prahlad and Stuart Hart, has become a set benchmark for companies to launch low price and low budget products and services in India. FMCG companies are said to first have focussed on this segment with the launch of sachets for shampoos, detergents , which had now extended to oil, toothpastes, jams, instant noodles and the list is increasing.
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