“The iPhone pricing [in Inida] is so steep that several potential customers were massively disappointed, even outraged, going by local media reports. The princely sum of 31,000 rupees ($720) for the 8-gigabyte iPhone and 36,100 rupees ($840) for the 16 GB version was too high for even such a cool gizmo,” V. Phani Kumar reports for MarketWatch.
“Additionally, Bharti is asking for a deposit of 5,000 rupees, while Vodafone is reportedly seeking twice as much. What’s worse, India has yet to auction the frequency spectrum required by mobile operators to start offering 3G, and a formal 3G launch is estimated to take up to a year. So even the rich, cool dudes who manage to get themselves an iPhone will only be able to enjoy the low-speed applications that they had access to anyway on their phones earlier,” Kumar reports.
“During the April-June quarter, Bharti earned 350 rupees a month as average revenue per user, implying that the company’s average customer can continue using the old phone for 9.8 years more, if he or she decides against buying a 16 GB iPhone, at a cost of 41,100 rupees (phone cost of 36,100, plus deposit of 5,000 rupees),” Kumar reports.
“Put another way, a fresh graduate recruited by one of India’s leading software companies will have to pay 1.6 times his or her pretax monthly salary of 25,000 rupees to satisfy an impulse to own the iPhone.
Needless to say, Apple needs to rework its iPhone pricing in India if it hopes to attract a respectable number of customers in this poor but rapidly growing economy. Even if it doesn’t, other mobile operators and other handset makers probably have much to gain from the iPhone’s launch anyway,” Kumar writes.
Kumar writes, “All industry players, not just Bharti and Vodafone, will gain from the iPhone, whether or not Apple does.”
Full article here.
A rising tide lifts… (long pause) …Sorry, I smoked weed with the president and I totally forgot what I was going to say.