This start-up offers premium phones on subscription in India
What's the story
A new subscription-based smartphone service has been launched in India by BytePe, a company founded by former Flipkart executive Jayant Jha. The platform offers an alternative to traditional methods of purchasing smartphones such as outright buying or paying through EMIs (Equated Monthly Installments). With BytePe, users can get access to premium devices like the iPhone 17 series by paying a fixed monthly fee instead of making an upfront purchase.
Operational details
How BytePe's subscription model works
The working of BytePe's subscription model is pretty simple. You choose a smartphone and pay a monthly fee for it. The tenure of this subscription usually lasts for 12 months. At the end of this period, you can either upgrade to a newer device, return the phone or continue with it for another year to take ownership.
Added benefits
Additional features of the service
BytePe's subscription model also comes with damage protection, which minimizes the chances of repair costs. The company also offers an upfront purchase option with insurance and a buyback value of up to 50% after 12 or 24 months. This feature allows you to recoup some of your money later, similar to exchange programs provided by retailers.
Comparison
BytePe vs EMI
When compared to traditional EMIs, BytePe's subscription model offers different benefits. With an EMI, you get immediate ownership but have to pay the entire cost over a period. In contrast, with BytePe's subscription, you only get ownership after an extended tenure or continuation. Plus, this model provides an upgrade option every year and includes damage protection as part of the deal.
Target audience
Who can benefit from this model?
BytePe's subscription model is likely to attract users who upgrade their phones frequently, especially those who want the latest iPhone or flagship models. It also caters to consumers without credit cards as it offers its own EMI plans. Those looking for predictable monthly costs with a protection cover may also find this model appealing.
Exclusions
When to stick with EMI or outright purchase?
Users who keep their phones for three to four years may find outright purchase or EMI more economical in the long run. Those who prefer full ownership from day one may view subscription as temporary access rather than possession.