In order to compete with Flipkart in the smartphone category, Amazon India is selling smartphones in India under ‘crafted with Amazon’ programme. Now, the online selling company is launching a smartphone in January under the brand name Tenor. However, this is not the first smartphone launch from Amazon as it is already selling Tenor E and G in India.
Amazon India has also partnered with two OEMs- Huaqin Technology and Longcheer to manufacture smartphones in the Rs 10,000 price range. “We leverage the customer data and feedback to understand the gaps in the selection, pricing and reach out to our vendors or OEMs to manufacture relevant products,” said Manish Tiwary, vice-president, Amazon India.
Smartphones have been the most profitable segment for e-commerce sites. Companies are focussing on the volume to cope up with the low margins in the mobile phone category. 2017 has been a year full of tough competition between Flipkart and Amazon India and it is expected to be same in 2018.
The e-commerce giant will target the local, low-brand and mid-brand segment of smartphones in the country which currently has around 20% of the total market share. Amazon India already sells products of brands like Solimo, Symbol, and Myx for categories like fashion, and electronic accessories.
Globally, too, Amazon is focussing on its private labels in categories including fashion, accessories, and home. The e-commerce giant had earlier launched its smartphone brand under Fire and has worked with other manufacturers to provide Prime exclusive smartphones in the US.