Flipkart needs absolutely no introduction. Best known for their whacky ads and online sales that garner attention for all the wrong reasons (remember the debacle last year), this e-commerce site has made news yet again. In a first of its kind move, Flipkart has joined hands with Apple to sell the iPhone 7 and 7 Plus in India.
For those who may not know, Apple’s existing partner Infibeam also receives new iPhones from Apple. However, Infibeam is a bulk seller and does not cater to retail customers directly. With this new partnership between Apple and Flipkart, the online shopping portal will be able to source the iPhone 7 directly from Apple, instead of depending on third-party sellers.
Win For Flipkart
The way I look at it, it’s a win-win situation for both Apple and Flipkart. Being a major shareholder in the e-commerce market in India, Flipkart generates a chunk of its revenues from the sale of smartphones. This tie-up with Apple will definitely give Flipkart a heads up, especially at a time when it’s facing stiff competition from Amazon.
Mind you, Amazon has been investing heavily in the Indian market since it sees a huge potential in the country. But right now, although it sells iPhone 7, the absence of a direct deal with Apple will lower its margins. Also, Amazon will have less flexibility in managing the supply chain.
This partnership gives Flipkart get greater credibility. Also, since it will receive marketing support and stocks directly from Apple at a reduced cost, it will enjoy greater margins and increased profits. And with the festive season right around the corner, Flipkart is more likely to receive a steady supply of iPhones from Apple, giving it an upper hand over the competition.
Win For Apple
The partnership will keep Apple’s pricing schemes intact and prevent scenarios like last year, where the iPhone 6 and 6S were sold at discounted rates by various e–commerce giants in a bid to drive up their GMV. This year Apple will not be forced to succumb to the market pressure and offer discounted rates. This way, the iPhone 7 is only sold at the price mandated by Apple and the revenue generated will not be compromised.
As per the deal, Apple has allowed Flipkart to sell across all category of products, including the previous models of iPhones, iPads and Macs. All devices sold on Flipkart, including the iPhone 7 and 7 Plus, will carry the Apple warranty. So for end-users like you and me, there’s no cause for worry at all and we’re able to retain our trust in Apple.
Now, if this does not boost the sales of Apple products in India, I don’t know what else will.