Flipkart To Sell Its Own DigiFlip Branded Tablets; But Why?

It’s not big, but its surprising. is planning to sell its own brand of tablets under its private label DigiFlip.digiflip_bags.jpg

The company is most likely to source tablets from China and brand it in India. (via)

Until recently, Flipkart has said that it doesn’t want to build and sell tablets or e-readers like Amazon, which recently entered the Indian market.

Why?

The tablet market is extremely crowded, with very little room to make money. It is also showing signs of a slowdown. After growing at a rapid pace in the first part of the last year, tablet sales in India slowed down a bit in the July- September quarter of 2013. About 1.2 million tablets were sold, accounting for a 9.9% annual growth, according to CMR India quarterly review.

With 18 mn registered users and 3.5 mn daily visits, Flipkart may be able to generate high volumes, but it won’t be easy. From the looks of it, this won’t be a high end device. That puts you in the league of Micromax and other low cost tablet makers. To say that prices & margins along with it there are plummeting is an understatement.

Also, Amazon’s Kindle is a book lovers wet dream and a highly aspirational brand. Amazon has also tied up with distributor Redingdon to penetrate the Indian market. The Kindle reader can be bought for as little as Rs 500 a month, and a Kindle Paperwhite by paying Rs 900 with EMI schemes that were recently announced. It’s a strategy that has worked well for iPhone sales in India.

Digiflip already sells electronic accessories, bags and such. There were rumors of Flipkart launching its own mobile phones, but that never saw the light of the day.

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