Amazon India to lower smartphone prices in a bid to increase its market share


Amazon India has over 180 products in the smartphone category. It is one of the biggest selling categories in India and Amazon is the preferred online destination for sellers (brands) and buyers (customers). However, Flipkart has outsold Amazon in Diwali sale events consistently. Therefore, Amazon India has decided to lower the prices of the products in the smartphone category (although it is the sellers who decide the product price on Amazon) while also increasing the spending sum over the next few quarters in a bid to expand its market share in India. The Indian marketplace is considered to be Amazon’s most important international market. The online retail firm is working closely with the sellers (brands) in order to reach out to the customers.

Amazon India Smartphone Category

According to Noor Patel who is the director of smartphones category management at Amazon, the company has been working on making smartphones affordable by lowering the prices and through EMI and smartphone exchange schemes. The various EMI and exchange schemes seem to have taken off among its customers. Amazon is in a bidding war with Walmart for Flipkart ownership at over $20 million valuation.

Amazon India worked on two large initiatives last year called the Get Fit and Get Big. Get Fit is about keeping the costs under control while Get Big is about expansion. Now, Amazon has planned to focus on market share and sales growth by reducing product prices while increasing spending.


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