iPhone Outpaced in Surging India by Less Costly Rivals

Apple and Samsung are being beaten in the fast-growing Indian smartphone market by a couple of aggressive local competitors.

Sales growth at Bangalore-based Karbonn Mobiles India Pvt. and Micromax Informatics Ltd. is being fueled by Indians buying their first smartphone to surf the Internet, which will be accessed by more than 300 million people by 2017. Their secret: the price. In a country where about 800 million people live on less than $2 a day, Karbonn handsets start from 3,599 rupees ($66) and Micromax’s from 3,999 rupees, less than the cheapest Apple and Samsung smartphones. The iPhone 4 is available for 26,500 rupees and Samsung’s Galaxy Y Duos Lite for 6,110 rupees.