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iPhone to Face Heat in India
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iPhone is yet to come in India. But when it does, sometime in 2008, it will have to make drastic changes in its selling strategy. Worldwide, Apple has adopted the strategy of tying up the handset with one of the operator and sell it through that operator only. Indian law forbids such an arrangement. Here, Apple will have to take the retail route if it wants to sell the iPhone.
Apple also takes 10% of the revenues generated through iPhone from the carrier. Now tariffs in India are already the lowest in the world. It’s unlikely that any of the carrier will agree to that kind of an arrangement.
Apple faced a similar problem in Europe. Vodafone filed a lawsuite agiants Apple in Germany, and won.
Another problem is that 75% of India’s mobile population is a prepaid customer. They change mobile operators very often. Being tied up with a single operator may not appeal to such users.
Hacked versions of iPhones are already available in India. Due to high demand , the prices have risen from Rs. 26,000 to Rs.31,000. However, at some places like Heera Panna in Mumbai, you can lay your hands on one for as much as Rs.18,000. There sure is a huge craze in India about the iPhone. Whenever it gets launched, the iPhone is sure to be a big hit.
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Sure will be a hit in apple’s face… i am eagerly waiting to see their India strategy.. india’s different should be case study material
Yes Balu. India is always an interesting round for suh products. Specially with mobile frnzy in India reaching the peak level, it will be interesting to watch how the different factors play out.