‘Phone'y prices

Any new mobile phone launch these days creates quite a stir. However, the slew of high-profile launches like the iPhone 4S, Galaxy Nexus, and the Nokia Lumia in the last few weeks have all garnered one common reaction - at least in the social media space - “What's with the pricing?”

Almost all the phones, except maybe for Lumia 710, are priced at or above Rs 30,000. The Galaxy Nexus is yet to be launched in India, but the price is likely to be in the same range. With the only probable exception of ‘techies' who constantly change their phones whenever a new one hits the market, the average consumer is not comfortable with this high price range. Techies have another advantage - whenever they eye a new phone, they sell their ‘old' ones (which may be just a few weeks or months old) and buy the new . This way, they don't spend as much because they get a great resale price. They are also quite comfortable buying unlocked phones from abroad, and don't worry about the warranty because they probably know how to fix a problem if it should arise.

So, it's the rest of the buyers who have to bear the brunt of the high prices. For most, buying a good smartphone like the Nokia Lumia 800 would mean parting with almost a month's salary. And when they do decide to buy an expensive phone, they ensure that it comes with a proper bill and manufacturer's warranty, because they cannot afford expensive repairs. So, buying it from the grey market or an unlocked device from abroad is ruled out. The maximum they might want to spend on a new handheld could be around Rs 20,000.The reason why the iPhone 4S sales are yet to gain traction is the steep price point. Other companies too may be outpricing some of their handsets within the same price range.

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