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HandSet
Who is to be blamed for iPhone’s failure to create consumer interest in India
TT Correspondent |  New Delhi |  25 Aug 2008

iPhone 3G was launched amidst high fanfare in developed parts of the world with consumers queuing up for hours to get a first hand experience on the highly desired handset. There were stores across the world where the iPhone 3G sold off like hot pan cakes and retail shops ran out of stoke of the product. It was amidst this that Apple announced its plans to launch iPhone 3G in India in alliance with Vodafone and Airtel.

 

Consumers in India finally had a reason to rejoice as the launch was almost coinciding with the global launch deferring by only few weeks. Consumers had earlier felt let down when they did not got a chance to experience the first version of iPhone. The highly interested consumers resorted to grey markets to procure iPhones. Bharti and Vodafone announced advance booking schemes for Rs 4000 to cash on the iPhone 3G hype prevailing during the global launch. The final price of the model was still unclear but consumers largely felt that it will be near about the same price as that offered globally i.e. $199.

 

On August 22, 2008 the iPhone 3G was launched in India which was considered to be a high profile media event. But then came the dampener. The tie-up announced that iPhone 3G will be priced at Rs 31,000 for the 8GB version and Rs 36,000 for the 16 GB version.

It came as a cruel shock to Indian subscribers who were looking forward to migrate to the revolutionary iPhone models.

 
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25 Aug 2008(IST)  
Comment
Your article is interesting, but there is 1 major misunderstanding on your part. The cost of iphone is $199 in US, WHEN YOU SIGN ON TO A 2 YEAR CONTRACT with the mobile company. In US & UK, you would normally get all the top phones for free with a contract. In fact, if you check www.o2.co.uk website (UK operator who is selling iphone), iphone is free. So, actually, the iphone in US is quite expensive, because you would get a top end phone like Nokia N95 or a blackberry handset for free. The cost in India cannot be translated into a simple Rs. 8500 ($199). I hope your confusion is clarified and the misleading news rectified.
Posted By :- Dr. Sachin Thakur
Comment
While it is not fair to compare the iPhone 3G price in US, one can't help wondering why Airtel and Vodafone went for such a high price for a 3G when India doesn't even have a 3G network and the existing GPRS networks are not that reliable either. The Nokia N96 is expected to cost around the same as iPhone 3G but it will come without any strings attached. The pricing strategy of Apple and Airtel/Vodafone seems to be flawed but let's wait and see who has the last laugh!
Posted By :- Nadeem Akhtar
Comment
I agree with the author.... Apple made a big mistake with price... Even if we consider that in US market price $199 is with two years service contract, but to the same level price can be calculated around Rs.20,000 max. Lets hope Apple will understand Indian market and launch a low price edition in future... If they don't do so, people like me will surely turn towards Grey market...
Posted By :- Piyush C
Comment
Dr. Sachin Thakur I have 1 doubt if Apple want want to give in this price then they have allowed to sell all mobile shops... why they given to these 2 company's? why not BSNL or Spice? if they given any contract for 2 year also its good for buyers & with high-end iPhone...
Posted By :- Vitthal Kulkarni
Comment
the article is correct. the contract Dr. Sachin talks about costs only $99. $199 and $99 don't add up $720(which is equal to the price in india). The handsets are locked here also, so even if there is no contract the user cannot swtich to another network.
Posted By :- Manoj
Comment
Agreed that the 2 year contract system will not work in India. But the reverse would have, Airtel & Vodafone could have given rebates in monthly bills to the subscriber for 2 years. They could have given rebate of Rs 500.00 per month for 2 year subject to your total bill being Rs 1000.00 per month. This way they would have had a customer for 2 years. Now people will unlock their phones and use on other networks.
Posted By :- Sidharth
Comment
Why are you complaining in this article ? Has anyone forced you to buy the iphone ? While I understand the logic, I see no reason to shout so much because this device will meet its fate in due course of time. You need to understand that no indian customer was taken to provide the feedback for this device , it is and was for US customer only. People should be educated enough as to why and where they are spending there money (31000 is a lot)
Posted By :- Anish
Comment
All of you guys. If you can do simple math understand this: $199- cost of the phone $69.99*24= $1679.76- combined min bill for 2 yrs Add it up and thats the cost of the iphone in the US. I live here so I know. It is expensive. Im not saying its cheaper in India. But it is not cheap here either. Its more expensive in monetary value. But you get the benefit of the extra added services here which you cant in India. Honestly, its not worth it in India- unless you have too much money and want the phone just to show off.
Posted By :- Ishaan Shah
Comment
This is the same mindset that launched the Ford ESCORT as a premium priced car in India (LoL). If one has followed APPLE ove the years, then one knows never to buy any of their products until the third generation or subsequesn offering. It takes them that much time to iron out all the bugs and come out with a great product at reasonable prices.
Posted By :- L Prasad
Comment
To compare the prices look at the following article. http://www.nytimes.com/2008/07/09/technology/personaltech/09pogue.html The monthly contract pricing of AT&T is $70 per month for two years. That adds up to $1879 for two years for the phone ($199) plus the contract ($70 x 24 = $1680). Airtel has a one-year lock-in contract with iPhone. So, working backwords, they charge you a one-time fee of $750 for the phone which translates to $199 for the phone and $550 in service charges for 12 months (that is about $45 per month) in advance. I guess that is how they have arrived at the price. I think those who expected Apple to sell the phone at $199 in India with no service contracts were living in another world where free lunches are available. This is what happens if you do not read the fine print.
Posted By :- Jay
Comment
I dont understand why so many of you journalists and people are complaining that the iphone is being launched even when there are no 3g services. Do you know that all of nokia's high end devices are 3g capable as well ? Why dont you crib about them then ? Its just that, only now people are aware of 3g services thanks to the iPhone. On the other hand, i agree with the rest of you that the price is too much for it to be a success.
Posted By :- Sameer V
Comment
Sameer Nokia does not sells its handsets based on the hype that it is 3G enabled. The whole pitch for selling iPhone around the world is its 3G capability.consumers are right in their opposition.
Posted By :- Kranti
Comment
1. 3G handset but u cant use 3G features. 2. Cannot be used as a modem to access Internet. 3. No SMS forwarding. 4. No Video recording. 5. Network locked handset. 5. Ordinary camera. 6. No FM 7. No Bluetooth file transfer. Why someone would pay 31000 or 36000 for touch screen walky-talky.
Posted By :- Jaswinder Singh Sidhu
Comment
Guys, iPhone is available in US for $599 and $699(8GB) without any contract with service provider.
Posted By :- Neeraj Nema
Comment
Iphone has been availble in gry market in India for last1 year and more han 500,000 I phone already in market. Hence segment of customers wh were most inclined to buy (at whatever cost/risk) are already having the phone.
Posted By :- Atul
Comment
Hey friends,,i agree with most of the people here,iPhone is too costly..and that too its network locked. they are selling 3g which is not avlbl in india. secondly apple iPhone does not support Adober flash player and now on most websites are flash enabled also no video recording and sms forwarding etc etc.. but looking at apple strategy over the ears apple always created a demand by controling the price..it is an aspirational device..same like E-90 or N95..N-82 does all what N-95 do its lighter has beetetr features i know its diffrent phone but is arounf 7 k cheap..sam in the case of E-90.. But friends its all about choice you want buy..then buy..its all about what you aspire for..but personally i will prefer N-96 have used both the phones its beeter comes with all what apple's got to offer and more..even services like DVBH etc with 16 gb internal memory..its hot..
Posted By :- Gaurav
Comment
appel thinks that indian buyers is fool to buy a phone with serious limitations of featuers that even rs 5000 phone has..... god bless the buyers of iphone....i will instaed buy one nokia phone and 1 laptop also in same money......
Posted By :- dr vijay mehta
Comment
for indians i think i phone is an absolute waste of money. because here in us even if u have iphone u rarely use all its features.because there is no 3g in india corrently, no gps and even the net speed is pretty low that what is claimed by the providers. next the rental for iphone in usa is 70 + 5 $ sms charge permonth and it is stupid to pay that much for a facility that u rarely use. i having one (i bought it because of the hype ) am sick of the delicate screen and the sleekness only makes it more delicate. recently a lot of reports on 3g iphones have developing hairline cracks have been reperted in the usa(www.engadget.com) but still if u guys want to by an over hyped mobile phone go ahead because better, cheaper and multifunctional android based phones are around the corner
Posted By :- aamani
Comment
That price for an iPhone is too much for Indian consumers. If this continues, Apple can never hope to beat NOKIA (or Sony Ericsson for that matter) in India. I am an internetwork specialist and I live in Canada and beleive me, Networks are far better in India than here. Apple is a loser if they can't offer an iPhone at a better to the average Indian.
Posted By :- Vivek