Tag Archives: 3g-smartphone-pricing

Reliance Communication iPhone 5C at Rs2,599 / Month and iPhone 5S at Rs 2,999 / Month with Unlimited Plans

RCOM iPhone Deals LaunchedReliance Communications, India’s fully-integrated telecommunications service provider just a while ago launched the Best Diwali Dhamak in the Indian Telecom space offer – Rs 2,599 per month for the iPhone 5c and Rs 2,999 per month for the iPhone 5s, both for a duration of 24 months—which include the handset cost, unlimited local and STD calls, SMS’, national roaming and 3G data. And in another first in India, ever, RCOM is offering these much-awaited iPhone models at no down payment.

Furthermore, under this unique offer, Apple iPhone 5c and iPhone 5s customers will not receive any usage bill for 24 months, as the monthly payments include all usage charges. Only international calls and international roaming charges will have to be paid for.

Benefits of Subsidized iPhone 5C and 5S
One is you get the best available SmartPhone in the market at a Monthly EMI. Additionally, RCom is also bundling the handset with Unlimited Voice Calling, SMS and 3G Data [Fallback to 2G where RCom does not have 3G License] all are subject to Fair Usage policy.

How Could RCom Cut the Deal With Apple for iPhone ?
India predominantly being a 95% pre-paid market, it is almost impossible for Operators to adopt the Subsidized Handset Bundled with Voice & Data Model of Business. Additionally, a decade old history during the launch of Reliance Infocomm Dhirubhai Ambani Pioneer Offer, the company has a bad learning experience that Indian consumers would not honor long term commitments. However, this time around, Reliance has truck a deal with HDFC Bank and ICICI bank two of the largest credit card issuers and the billing risk is passed on to these banks. Consumers need to be aware that EMI on Credit Card cannot be defaulted as you’ll have accountability in the System through CIBIL and other Credit bureaus.

3G Mobile Data Challenges – 27% of Subscribers have just Rs 30 Balance on Pre-Paid Accounts

3G Data Uptake Continues to be ChallengeWe’ve seen that just 35% of the Towers are 3G Lighted implying slow deployment of 3G data Services even 3 years after the auction. From a demand perspective, we believe that the challenge from a 12-15 month perspective is increasing 3G penetration. Even though it is a daunting task, the current c150m subscriber pool of 2G data users is clearly a segment, which can be upgraded to 3G services (and it is the handset vendors that will drive this with handset affordability being in the sub USD 100 category)

Pre-Paid and the Low Account Balance of Consumer a Concern for CAPEX
India is among the few markets globally that is pre-paid centric and without any handset subsidies). The second aspect is driving average usage per subscriber. We don’t think that Continue reading 3G Mobile Data Challenges – 27% of Subscribers have just Rs 30 Balance on Pre-Paid Accounts

Mobile Internet Traffic Tops 15% of Global Internet Traffic

Mobile Internet Tops 15 of Internet TrafficA decade ago, one would have felt disconnected without a mobile. Today, it would be socially embarrassing not to have a smartphone, especially among the youth. Android & iOS based Smartphones have revolutionized user experiences, extending basic features (voice and messaging) to internet access. Thanks to the popularity of mobile devices, such as iPhones, iPads and Android phones, mobile internet has turned into a global phenomenon.

Consumers use mobile devices for entertainment, social network, shopping, reading, etc. Global mobile traffic accounted for 15% of total Internet traffic in June 2013, up from 10% a year ago, according to StatCounter;

The explosive growth of mobile internet has inspired Continue reading Mobile Internet Traffic Tops 15% of Global Internet Traffic

3G SmartPhones Sales Rising in India – Hurdles Exist for large Scale Data uptake

3G SmartPhone Sales Rise Modest in IndiaAccording to data from “The MobileStore” a leading Mobile Handset retailer in India, with a presence across 100 cities through 800 stores, suggests that decline in 3G smartphone prices and data usage evolving beyond social media are helping accelerate smartphone adoption (~10% of handset volumes).

Current 3G smartphone volumes are 2-2.5m/month vs < 1m a year back and only 200-300k a couple of years back. The current economic slowdown hasn’t as yet impacted volumes, though we expect the recent sharp rupee depreciation could dampen uptake as vendors are unlikely to absorb the full currency hit. Interestingly, while the overall replacement handset cycle is ~24 months, it is ~15 months for smartphones, despite their higher Average Selling Price. Continue reading 3G SmartPhones Sales Rising in India – Hurdles Exist for large Scale Data uptake

What SmartPhone Features Can Reverse the High End Mobile Saturation Cycle ?

New Sought after Features for Mobile SmartPhonesFew days ago we discussed the Saturation in sales of High End SmartPhones. The high end consumer is complaining that the hardware spec is a marketing gimmick and refusing to upgrade. Amidst this backdrop, can the mobile handset makers give consumers a reason to buy new handsets ?

Battery Life Consumers’ most frequent complaint about smartphones is battery life, and yet all the new features in today’s flagship smartphones add features that many consumers believe do not improve user experience – but meanwhile shorten battery life. Most Mobile Apps Continue reading What SmartPhone Features Can Reverse the High End Mobile Saturation Cycle ?

Super SmartPhone Market Saturates – Emerging Economies Want Mid End SmartPhones

Super SmartPhone Market SaturationThe >USD 500 super smartphone segment is the most important, as it is where Samsung and Apple generate most of their smartphone profits. Together, Samsung and Apple’s smartphone revenue account for about 63% of total smartphone industry revenue in 2013, and about 95% of industry operating profit [Profit share is calculated by excluding the losses that tier-2 brand smartphone makers suffer]. Approximately, about 76% of Samsung’s smartphone profits are generated from the >USD 500 Galaxy S/Note series, the >USD 500 segment of Samsung and Apple combined would account for about 84% of total smartphone industry profit.

The >USD 500 superPhone category y-y growth is expected to slow to 1% in 3Q13, from 73% in 3Q12. Most consumers with purchasing power have already bought one of these superphones, and slowing innovation may be lengthening consumers’ smartphone replacement cycle

It is widely anticipated that Samsung’s flagship Galaxy S4 Continue reading Super SmartPhone Market Saturates – Emerging Economies Want Mid End SmartPhones