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Apple UAE offers iPhone 5s and iPhone 5c at Dh150 discount, but…

By Vicky Kapur Published: 2013-11-04T07:01:00+04:00

iPhone 5C

The much-awaited iPhone 5s and iPhone 5c made their UAE debut yesterday, and by the looks of it, they’re flying off retail shelves.

"Sales for the iPhone 5s have been strong. We're expecting to have enough stock to last for another few days but can't guarantee that all the colour and capacity combinations will be available throughout," Ashish Panjabi, COO, Jacky's Electronics, told Emirates 24|7.

With UAE residents among the world’s biggest smartphone buffs, that was perhaps expected. According to a recent study published by TNS, a custom market research organisation, smartphone ownership in the UAE outstrips the global average by more than 35 percentage points.

In a media statement this morning, TNS said that, according to its annual Mobile Life Study, 78 per cent of UAE residents own a smartphone compared to the global average of 42 per cent.

No wonder then that retailers don’t seem to have enough stock of the hot-selling iPhone 5s, especially the gold iPhone 5s, which is on track to become a global collector’s item given its overnight superstar status. "As of now our entire stock of the gold iPhone 5s is sold out and unlike the grey market, we didn't charge any premium for this. It sold at the normal [retail price] and came just in time for the Diwali gifting season," said Jacky's Panjabi.

However, while the iPhone 5s is being retailed by local retailers starting Dh2,749 for the 16GB version, Apple’s official store is offering it at D150 less than that – at Dh2,599. Of course, the catch is that if you order through the Apple Store, it will take between 2 and 3 weeks for the smartphone to reach you (free shipping on all orders above Dh520). "As for the Apple online pricing, this is an area that Apple will need to give an explanation on but a cursory glance of their website indicates a 2-3 week shipping period for the iPhone 5s and I believe Apple ships the product from outside the UAE so customs charges could be applicable," said Panjabi when asked to clarify the Dh150 price differential.

If you think that wait is worth the Dh150 you’ll save, this is where you should be transacting. For all those who can’t wait to lay their hands on a brand new iPhone 5s, head to your nearest electronics retailer before stocks run out. “Apple iPhone 5s is now available at all Jacky’s stores, get yours before stocks run out!” tweeted Jacky’s Electronics (@jackysUAE) yesterday morning.

The retailer has this morning posted an image of the first customer who bought the iPhone 5s from its Deira City Centre store when it became available at 12 midnight on November 3, 2013.

The iPhone 5c is also being offered by the Apple Store at a Dh150 price difference to what UAE retailers are offering, but this device, which has seen a slower take off globally compared with its feature-rich sibling, will be shipped within 1 to 3 business days.

"The iPhone 5c has had a slower start but this is only because the customer for the 5c we expect may not be your typical Apple customer. I personally see this more as a device for the student segment or those who want a phone when a replacement is due but aren't particularly bothered about the new features in the iPhone 5s," said Panjabi. Either way, Apple Inc. (NASDAQ:AAPL) may revert to its solitary smartphone strategy with its next smartphone launch, the iPhone 6.

On the other hand, telecom operators in the UAE have begun offering the devices for ‘free’ along with data bundles and annual plans. “Customers can get devices free with contracts at monthly rentals starting as low as Dh199,” UAE operator Etisalat said in a media statement dated Friday, November 1, 2013.

As Emirates 24/7 reported on Saturday (Read: iPhone 5s, iPhone 5c in UAE: Trade old iPhone, get latest Apple release for just Dh199 per month), the operator is providing free iPhone 5c and iPhone 5s devices on contract and with attractive plans.

“Enabling immediate access to the latest technology and advanced products to our subscribers in the UAE is part of our customer-driven business strategy. Given the huge demand for the latest iPhones, we wanted to offer an early opportunity to users to own the latest devices, combined with attractive packages, at the most competitive prices,” said Khaled El Khouly, Chief Marketing Officer, Etisalat, UAE.

“At half the normal monthly rental, postpaid subscribers can sign up for a 10GB contract-free data capacity plan at Dh225 per month. Etisalat prepaid Wasel customers will enjoy 1GB free data for the first three months. After that, they will pay a monthly rental as low as Dh99 for the allowance,” Etisalat said in the statement.

The UAE’s other telecom operator, Du, is also offering the 16GB iPhone 5s, and 16GB/32GB iPhone 5c smartphones for free along with a 24-month contract on its 4GB data bundle, which has a monthly fee of Dh200. It is also offering the devices on zero-interest installments for 12 and 24 months, along with its 1GB and 4GB data bundles.

The TNS study also reveals that nearly 40 per cent of consumers in the UAE either own, or are looking to own, a tablet. The study goes on to reveal that at 19 per cent, tablet ownership in the UAE is also considerably higher than the global average hovering at 12 per cent.

TNS’ regional chief executive officer, Steve Hamilton-Clarke noted that there has been a sharp increase in tablet sales in the UAE in the past 12 months.

“There is a comfortable dance going on. As organisations and governments embrace mobile apps and m-commerce technology, consumers embrace a smartphone. In fact, around half of the world’s mobile owners are ready to use their phone to make purchases and manage money, and here lies the opportunity for UAE businesses across the board,” he said.