According to Business Standard reports, the iPhone is expected to be launched in India in the first week of September. The expected price point for the 8GB model is around INR 28,000 (Approximately $700). The worst part about the launch is that even at this relatively high price point, the iPhone will be sold locked to the Vodafone network.
Locked mobile phones are almost unheard of in India. 99% of the GSM phones sold in India are offically unlocked and there is no such thing called contract too. The iPhone will be the first major smartphone that will be sold in locked state to the user. The HTC Touch, when it was launched in India about a year back, was also sold locked to Airtel, but the current versions are all unlocked.
Given the premium price point, it is highly unlikely that people will flock Apple/Vodafone stores to buy these things. Even the much more advanced Nokia N95 8GB sells at the same price point as the iPhone. In other markets like the USA and UK, Apple gets a share of Voice and Data revenues coming out of iPhone users. If Apple follows the same business model in India, the iPhone is going to be nothing but a disaster here. Instead of contracts, people use what is called a ‘plan’ and these plans are highly flexible and customizable, when compared to contracts in the USA. Apple iPhone plans are likely to be priced high, which will drive away people from this phone. I feel that Apple needs to come out with a innovative plan for the Indian masses, so that they can still get their share of Voice and Data revenues, but at the same time provide less TCO for the end users.
The iPhone grey market will not be going away anytime soon.
{ 0 comments… add one now }