Why Apple And Samsung Told To Stop Heavy Online Discounts


On the contrary, brands say they follow the same pricing and trade promotional schemes for online and offline retailers while online retailers say lower operational costs allow them to offer higher discounts compared to offline retailers.

Vineet Taneja, head of Samsung India’s mobile phone business says, the brand offers uniform price for its devices, with the trade partners free to offer consumers their own pricing within the MRP.

Surprisingly, Apple whose products seem to carry maximum discounts online, declined to comment on the issue. Varghese M Thomas, BlackBerry India spokesman said the brand follows uniform pricing and product service policy for its products across markets.

According to Vishal Mehta, founder and CEO of Infibeam.com, “One can serve an entire city in online retail with a single stockroom.” He added saying, "The savings for online retailers come from lower inventory costs, which get passed on to end-customers in the form of great offers.”

Online retailers say they can offer lower prices because they don’t have to invest large amount of capital on real estate and can maintain stock at all locations.

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