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January 03, 2012

G’Five slashes mobile handset prices by 30%

Mobile handset maker G’Five has slashed the product prices by between 10-30 per cent across the board against the current trend of hiking rates by competitors due to depreciating rupee.
“G’Five is one of the biggest manufactures of mobile handsets in China. Unlike other companies, we don’t need to buy from a third party. Though depreciating value of rupee has certainly impacted our margin, by slashing prices, we are looking at large volume business,” Mr Arshit Pathak, Managing Director of Kingtech Electronics, a G’Five group company, told PTI.
He said that the company has reduced the prices on each model and the lowest price model is below Rs 1,000 and the high-end model from the company is in the range of Rs 4,500.
G5 Projector Phone costs only Rs.4500 now
“Our low-end phone has camera, 1.8-inch screen and music player. The prices have gone down below Rs 1,000. Our high-end phone is a projector phone, which was earlier priced at over Rs 6,000 and now we are selling it for Rs 4,500,” Mr Pathak said.
Explaining the rationale behind the price reduction, he said that the company has adopted a view that it should decrease prices when other companies are increasing their handset prices to increase the price gap with them. Also, the company does not see new consumers adding to mobile subscriber base in the country
“The new subscriber addition has fallen drastically. This means all addressable market is connected but we all know first time buyers are not coming for certain reason. Low-end market is impacted by a lot of economic conditions. We want to make phone affordable for them to connect,” Mr Pathak said.
He added that handset sales reflect addition of new subscribers and in India, where teledensity is still low, acquisition of new customer can only drive business growth.


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