A decision was taken recently in one of India’s largest states that we have not encountered before. The President of Rajasthan said that all women living in his state will be given free smartphones. But this decision aroused the manufacturers in the market. Here are the details…
Free phone decision for women in India! Why do brands revolt?
Rajasthan State, located between Mumbai and New Delhi on the Pakistani border of India, has taken a new decision that aroused smartphone manufacturers across the country. He said he plans to distribute free smartphones to 4 million women living in the state.
The Mobile Retailers Association of India, on the other hand, said in a letter to the President of Rajasthan that half a million smartphones are sold every month in this state. In other words, if 4 million devices are given free of charge, almost 1 year sales will be prevented. This means that trade in the market will come to a standstill.
Moreover, 1 out of every 4 phones sold are devices that are located in the entry segment and cost 10 thousand Indian Rupees, that is, less than 120 dollars. In other words, we are talking about a market where devices with a very low profit rate are sold intensively.
Moreover, it is stated that the devices that fall in this entry class are mostly sold through small-scale telephone shops and stores. Therefore, if this decision is implemented, it is said that many domestic start-ups/manufacturers, especially these sellers, and brands with small market shares will go bankrupt or withdraw from the market.
In fact, this free phone campaign for women, launched by the State of Rajasthan, remains solvable with the inclusion of the aforementioned callers and multiple brands. Still, we’ll all have to wait and see what happens, as the free delivery of 4 million devices is a world first.
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