No iPhone Price War In India; Airtel Comes In At The Same Crazy Price
For two brief days, Indian iPhone fans held out hope that they might be able to get the gadget for less than the $715 price tag that Vodafone (NYSE: VOD) India put on the 8 gigabyte model, and $830 for the 16 gigabyte one. But there will be no price war, as Bharti Airtel, the other Indian carrier to sell the iPhone, released its prices today, matching Vodafone’s. As pointed out earlier, this is big money even for a professional Indian IT worker whose average salary ranges from $12,000 to $24,000. Remember, too, that there is no 3G service yet in India and the phone, the paper believes, will be locked to either the Vodafone or Airtel network.
According to the IndiaTimes, the two operators had little choice on the pricing, and sources inside the two firms blamed Apple (NSDQ: AAPL) for “controlling almost everything very closely, leaving very little elbow room for them.” Apparently, Apple has not only dictated the price of the phone, but also how it’s sold, publicized and the branding materials around it. It’s hard to see how the phone will get traction in India, as one Bangalore reader to the India Times said, “I don’t think anyone will buy the iPhone at this price. But there is hope for Airtel and Vodafone if they have a store near a mental hospital—provided the patient has enough money with him.”
Posted In: Mobile
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Comments (14)
Aug 21, 2008 10:17 PM
Its most unfortunate that these two Indian companies came with such absurd pricing. especially when other manufacturers are gearing with their Iphone killer launch in India soon. Nokia with Tube (09) and Samsung and LG with their constantly getting better touch phone capabilities.I hope their come up with revise pricing within 2 -3 months time,or they loose the major chunk of the customers who are in price bracket of 15 to 20 K and willing buyers.
Aug 22, 2008 12:41 AM
“this is big money even for a professional Indian IT worker whose average salary ranges from $12,000 to $24,000. ” That’s a very big misreresntation…
Salary ranges on an averages in IT industry for 2007-2008 was between for freshers vs 5 yrs experienced were Rs.18000 and Rs.43000 Respectively, (Ranging from approx 400 to 900) USD…
Aug 22, 2008 1:00 AM
Only people with black money like Mukesh Ambani can buy at this price.
Aug 22, 2008 2:06 AM
I think this salary range was given on annual basis and not monthly as interpreted by you….so max salary will still be 12,000 usd, in any case i agree that this pricing is astounding….i hope they get more realistic in coming months….
Aug 22, 2008 2:13 AM
yup! it is overpriced. I would certainly not buy it
Aug 22, 2008 2:21 AM
The pricing is *hardly* unexpected - *everybody* knew that the iPhone was going to cost upwards of Rs. 30k - pretty much in line with global pricing. As for Vodafone and Airtel undercutting each other on price - again, it was never going to happen - Apple just wouldn’t allow it.
While all the talk about the iPhone being the Nokia killer is in my opinion, rubbish, I do feel that the the Bangalore reader above is too far on the other extreme. While the population is small, I think that you’ll find a lot of middle managers / businessmen that currently have a Blackberry (but don’t *really* need it) moving to the iPhone.
Gautam Kshatriya
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http://www.moneyvidya.com
Aug 22, 2008 8:08 AM
Gautam - I get your point on the Blackberry but let’s face it, faced with the one service that Blackberry is eponymous for, the Apple doesn’t really stand up to it.
Also, the middle managers / business men that currently have a Blackberry but don’t need them breed are mostly people who have been thrust the phone on them by their offices. I don’t see either the companies beginning to dole out 30k Personal Media centres cum phones (read iPhones) nor the middle managers spending Rs. 30,000 from their own pockets for a “second phone”. Yes, the business men might be keen on it.
Aug 22, 2008 8:11 AM
The other line of thought which probably answers this crazy price announcement is that in the US, the operator, AT&T;sells the phone bundled with a contract whereby call charges help offset the cost of the hardware which the operator absorbed.
However, with call charges in India already being among the cheapest in the world, its really hard to see how usage will help offset the hardware cost for Airtel or Vodafone.
Imagine a service plan with Rs. 2500 as rental with 500 minutes bundled - I am not sure how many people might lap up that offering.
Aug 22, 2008 11:35 PM
This pricing is not acceptable.In a news it is told that iphone lacks facilities like text message forwarding ,cut & paste and bluetooth sharing.
Aug 25, 2008 11:53 PM
wow! it is overpriced. I am not going to buy it !!!
Aug 26, 2008 7:57 AM
The price part is very high i can"t purchase
Aug 28, 2008 1:53 AM
Why shud i go 4a fon which has no blue tooth to transfer data,
No autofocus for a 2MP cam
No option to change ring tone
No option to install java softs,
No option to forward msg (pathetic)
I wont buy even it is priced between 5000 -10000
Aug 30, 2008 4:06 AM
I think Nokia and SE both richly deserve the market share that they have got here. They have really understood the indian users and brought out phones accordingly. Its common knowldge that asian users invest the maxi in phone hardware. Apple hasnt understood their audiences well. It has steadly lost marketshare as far as their desktop business is concerened. The laptops never took off. They tried lots. Now with the iphone, unless people try, no one will understand the potential of iphone, and before that happens,,Nokia and SE will crush Iphone before they realise it. Nothing to say about the HTC android (google OS) phone on the anvil.
Amazing short sightedness from a progressive co like apple. But what has to be has to be.
Cheers
Oct 7, 2008 12:01 PM
the pricing apple has forced upon vodafone and airtel is simply ridiculous., and dont seem to be showing signs of reducing unless the iphone market doesnt pick up in india at all. I for one am seduced by the touch ineterface and the apps of the iphone, but the price , woah , ...wudnt buy even if some1 gifted me 36000 to buy it.no matter which part of d indian middle class you belong to, there’s nothing to kill the guilt of having spent 36 on a fone, 1 wid some rather ridiculous drawback;s, for eg.. no bluetooth sharing and no alternative ringtones, which even an obsolete handset developed by the flintstones in the stone age would have.Concluding, i urge evevry1 2 resist the urge of buying the iphone which will soon be a price on request in museums.
im beter of changing my nationality and purchasing it from elsewhere than buying it from india.
cheers,
apple seems 2 b becoming more and more synonymous with 2 words, namely, ‘control’, and ‘ridiculous’.