iPhone to be costliest in India on lack of subsidy

[sathish456]

The much-awaited 3G iPhone is likely to cost a fortune in India, unlike in global markets, with Indian service providers unlikely to subsidise the gadget, like AT&T in the US and O2 in Germany.

Moreover, a fear of unlocking (cracking) and a likely flooding of counterfeit iPhones in the market are also likely to keep Bharti Airtel and Vodafone-Essar -- the two service providers – from subsidising the handset.

According to industry sources, prices of the latest iPhone (Version 2.0) would be at least double the amount of that in the US. The 8-gb version of the gizmo is likely to be priced between Rs 16,000 and 18,000, while the 16-gb would cost around Rs 24,000 to Rs 28,000 in the country.

Prices in India would also be higher by around $25-30 (Rs 1,000-1,200) as companies are expected to levy handling and other charges.

This is in contrast with the 8-gb iPhone sold at $199 (Rs 8,000) and the 16-gb priced at $299 (Rs 11,960) by AT&T in the US. The phone is given free by O2 in the UK, while T-Mobile prices it at a meagre 1 euro (Rs 67.92) in Germany.

AT&T, O2 and T-Mobile are bundling iPhones with their services, resulting in cheaper pricing of handsets to consumers.

The companies have admitted of subsidising -- the extent of the subsdy is under wraps -- with AT&T saying that it may take a hit in revenues for the next two years.

However, industry sources said without subsides the iPhone would cost around $400, double the price offered by AT&T in the US.

According to sources, Airtel and Vodafone are unlikely to subsidise them as bundling is not a \"successful formula\" in the country and penalty clauses are not strictly adhered to leading to lengthy court battles.

In the US, buyers have to sign a service contract for two years with AT&T and the phone has to be activated within 30 days. To discontinue the service, either the phone has to be surrendered or a cancellation fee of $175 (Rs 7,000) has to be paid.

When contacted, a Bharti Airtel spokesperson said: \"We have plans of bringing in the iPhone before the close of the year, though a specific launch date is yet to be announced. It is too premature to comment on pricing details.\"

While Vodafone-Essar did not respond to queries, an Apple spokesperson based out of Singapore said: \"Apple does not comment on speculation.\"
Business Standard

 

[Sushubh]

heh. an article about nothing...i am pretty sure india's iPhone would be cheaper than at least some of the other markets. especially in markets where Apple would be forced by law to launch a truly unlocked edition of the device.

 

[Dushie]

yea indian phones would be cheaper, but though grey market and not through providers

 

[Deleted member 7160]

I dont think Apple would play with the Prices in India..

 

[Sushubh]

Apple would be insanely stupid if they price the iPhone very high.they need the numbers and india can give them the numbers.

 

[vebk]

I disagree. ALL of Apple's products are overpriced. Compare Apple laptops to Windows laptops, iPods to other brands like Creative, SanDisk etc. and iPhone to Nokia. They are overpriced because they have a huge and ever-increasing fan base that will pay whatever it takes to get some white goodness apple style.And the same is true in India. I have multiple friends who paid twice the price for an Apple iBook over a comparable windows notebook with no logic except the asthetic appeal and overall allure of brand Apple. Similarly, iPod is by far the mainstream mp3 player, even in India. I know plenty of people who have paid 20k plus for an iPhone in the grey market (without warranty!!).I am sure they will be able to sell at high prices. (And as Apple products rely on the "Style" and "coolness" factor more than other brands, high prices can in fact be a good thing crazy enough - maybe it makes the product exclusive, or maybe it drives everyone to fit into the "in" crowd - whatever, it makes people buy overpriced products).

 

[Sushubh]

well you are forgetting one thing. iPhone is a mobile phone and Apple is a very small player in this segment.they are aiming to sell 10 million units this year. they would achieve that aim...but to become a major mobile phone maker in the world they have to have mass appeal. the numbers are not going to come from developed markets where the mobile segment is already very saturated. india and china are the markets with mobile phone numbers. india add 8 million new mobile users every month.if apple gets 10% of that number, it would benefit them immensely.iphone is very different from ipods and macs... they are not playing to be a niche player here. they want to become a major force in this market... and this is why every other mobile company is trying to developed a so called iphone killer.and iphone is going to prove to create a bigger HALO EFFECT for the company. the more people buy the iphone, the more people are going to be tempted into buying the mac...

 

[blr_p]

iPhone price depends on contract, how long are you locked into it ?Its cheaper elsewhere as they lock you in for a yr or two and you pay higher per-minute rates.Unless these factors are considered who can say how expensive an iPhone really is ?

 

[vebk]

^ I thank god every day that we don't have phone contracts here. The US has such a @#$%!#$ed up cell phone system it's unbelievable!!! Luckily, since we didn't start thay way, it looks doubtful that contracts would ever come on the scene here.

And I don't think that Vodafone, Airtel will get contracts. Their sales people will start selling it to their friends under false names, and the pphones will reach palika to be unlocked and sold at a much lesser price than an officially unlocked phone, and there goes the whole system.


well you are forgetting one thing. iPhone is a mobile phone and Apple is a very small player in this segment.

they are aiming to sell 10 million units this year. they would achieve that aim...

but to become a major mobile phone maker in the world they have to have mass appeal.
If it was a new company I would agree with you. But the "Apple" brand is huge now (for better or for worse), and as we have seen in other countries the iPhone has been a smashing success (for better or for worse).

iphone is very different from ipods and macs... they are not playing to be a niche player here. they want to become a major force in this market... and this is why every other mobile company is trying to developed a so called iphone killer.
I don't agree that they are a niche player anymore. Especially with regard to iPods where they hold the largest market share. Same with the iPhone. They hold the market for touchscreen cell phones right now. (And this story is like the iPod where many other companies have had similar if not better products already in the market, but Apple with its superior marketing has trounced them). And touchscreen phones is their market. They aren't coming up with a whole bunch of models (like Nokia or SE) ranging from budget phones that paanwallas will buy to premium business handsets - they just have the iPhone. And that's where they are comfortable.

 

[Sushubh]

Apple iPhone is not exactly priced at a premium when compared to comparable un-subsidized mobile phones in USA and Europe.