The Silicon Review ^Asia

In a move to cater to the booming Indian market, Amazon is focusing to slash down the prices of premium range of smartphones, Economic Times reported on Thursday. The e-commerce giant is taking the step by joining hands with various financial institutions, banks, and credit rating companies. By doing that smartphone buyers will be able to pay for their products in credit options.

Along with the new move, the company has been successful in bringing a wider range of smartphone brands which are aimed at expanding and widening the company’s footprint in this category.

People familiar with the matter said, the company have noticed the moment it deliver provide some of the affordability initiatives to customers, they see an uptick in adoption and sales of the brand.

Majority of the smartphone makers have begun to fund these affordability plans because they see better ROI.

In the Amazon India’s website, there was an increase in demand in the category of premium smartphones (higher than Rs 25, 000) close to 33 percent during January-March a year earlier. While, there was 40 percent growth in demand for mass phones (prices between RS 10,000-25000) in the same period.

The average customer among the purchase of smartphones at no cost EMI is one out of three and one in five buy a smartphone on exchange.

According to reports, by the end of 2019, the average sale price of smartphones in India is expected to rise by over 18% to $190-$210 (Rs 13,000- Rs 15,000) in spite of increasing demand for mid-ranged smartphones with premium features.