Mobile handset maker G'Five today said it has slashed product prices 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 manufacture 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 but by slashing prices we are looking at large volume business," Managing Director of Kingtech Electronics, a G'Five group company, Arshit Pathak told PTI.
He said that company has reduced prices on each model and the lowest price model is below Rs 1,000 and high end model from company is in range of Rs 4,500.
"Our low end phone have camera, 1.8 inch screen, music player and other feature phones. There prices have gone down below Rs 1,000. Our high end phone is a projector phone which was earlier prices over Rs 6,000 and now we are selling it for Rs 4,500," Pathak said.
He said that first was option was to pass on the burden on to consumers but brands that have done so are not in good shape.
Explaining rationale behind the reduction in price, Pathak said that the company has adopted 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 lot of economic condition. We want to make phone affordable for them to connect," Pathak said.
He added that sales of handset reflects addition of new subscribers and in India where teledensity is still low acquisition of new customer can only drive business growth.