Apple faces big challenges in bringing iPhone to India, world’s fastest growing mobile phone market

“Bringing the iPhone to the world’s second-largest nation will present a big set of challenges for Apple. Like in other countries Apple has made overtures with, Indian telecoms likely won’t easily warm to the company’s revenue sharing model. Even if iPhone makes it to the Indian market, only 17 out of 1,000 mobile users there currently buy high-end devices, and three out of four prefer prepaid plans to contracts,” Ritwik Donde reports for The Economic Times.

“Industry players said there will be stiff resistance from India’s service providers, who are already offering some of the world’s lowest tariffs, to share 10 percent of their billing revenue with Apple, as the company has successfully extracted from phone companies elsewhere. ‘Not many operators would want to go with such a pro-Apple model despite its huge anticipation in the Indian markets,’ a top official at a large telecom service provider said. According to IDC India, mobile services average revenue per user (ARPU) stands at a paltry 246 rupees per month (US$6.24), less than a fourth of what it was a decade ago,” Donde reports.

“Gadget watchers are also speculating on which service operator is best suited to bring iPhone to India, should there be an exclusive deal. ‘If it is looking for a service provider with a large subscriber base and a pan-India presence, Airtel is its best choice,’ ” said Nandita Krishna, senior research analyst at Frost and Sullivan,” Donde reports.

More in the full article via TechNewsWorld here.

[Thanks to MacDailyNews Reader “Ampar” for the heads up.]

39 Comments

  1. hey, you sell to the rich. Its a top of the line phone. Apple is not in the business of racing to the bottom of the pile, just to say its got market share. They leave that to Dell. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

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  2. This article is apparently baited. If India has a low budget telecom industry, Apple will avoid it anyway, this issue is a non-starter. The title ‘Fastest growing market’ is suspect, if the profit is so minimal, it actually may be bad for business. Apple is definitely though, the one to watch concerning Japan. Plenty of tech-savvy consumers who will pay top dollar if necessary, that’s where the real news is.

  3. “Apple faces big challenges in bringing iPhone to *** ” *** insert random country name here…

    Blah, blah, blah.

    India, like China, like, hell, the USA, is a nation of extremes of poverty and wealth. So what else is new? Those who can afford to buy the phone will buy it, those who can’t, won’t. Owning an iPhone will therefore be even more of a status symbol in countries where it represents “half a year’s salary” for many people.

    There is no way Apple can compete with the legions of cheap, throw-away phones- and they have ZERO INTEREST in doing so. There is no money to be made in pursuing that market.

    India’s per capita income: $707.00

    Please, let’s keep things in perspective.

  4. Nonsense. There will be a wireless provider who steps up to accept Apple’s terms. And whether it is affordable or not for most consumers is irrelevant. There are enough consumers (who can afford an iPhone) in India to make it profitable for Apple and the fortunate wireless company.

  5. There are lot of iPhones selling already here like hot cakes. There is a lot of demand here. It would be great if Apple strikes a deal with Airtel. Nokia is grabbing market share like anything.

    Also Apple should start Indian iTunes Store. There are about 1000 movies produced every year. Indian film industry is 100 years old. Every movie will have 5-8 film songs. This is all apart from 25 regional languages.

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