iPhone 3G - This is undoubtedly the only gadget, ever released by any company in the market, that has managed to generate so much hype that users all over the world are desperately awaiting the launch of the phone in their respective countries. The iPhone, which was first launched by Apple in the USA under AT&T’s networks has now been made available in over 20 countries and Apple plans to achieve a target of 70 countries.

The US telecom market functions relatively different than the way the Indian telecom market functions. In the US, most of the phones available in the market are subsidized. What this means is that the mobile phone comes along with the connection and the phone is tied to that particular operator. Any customer, who purchases the phone, has to sign up a contract with the service provider and cannot opt out of the contract without paying a termination fee. India, on the other hand, follows a different approach. A large portion of the mobile phones available in the market are available unlocked. We do not need to purchase connections along with the phone and are free to change our mobile service providers as we like. Not only that, we enjoy one of the cheapest calling rates in the world.

Thus, the iPhone was strategically launched with a price tag of $599 and $699 for the 8GB and 16GB versions respectively in the US. At launch, the phone competed with other leading mobile phones available from the service providers from companies like Nokia, Motorola, Samsung and the enterprise mobile leader Blackberry. The phone was made available through a 2-year contract with AT&T, which is Apple’s choice of service provider till date.

Back then, the iPhone was an instant hit, selling 270,000 iPhones in the first 30 hours that it went on sale. The iPhone, which went on to be named Time Magazine’s Invention of the Year, is a remarkable gadget that takes a whole different approach to a mobile phone. The iPhone features an outstanding User Interface (UI) built atop Apple’s solid Mac OS X as the OS. The phone features a 3.5-inch screen which also doubles up as the phone’s only input touchscreen. Unlike any other touchscreen phones, the phone features a multi-touch screen which allows the user to perform multiple input gestures such as two finger scrolling, pinch to zoom etc. However, even though the phone brought a whole cart of remarkable features, it drew a lot of flak from the masses and critics alike, since it lacked many of the simple features that were a part of every other phone in its category. The most talked about feature, back then, was the lack of 3G. Unlike in India, 3G has been around in the US for quite some time now and a phone that promised out of this world browsing experience, but lacked 3G seemed a bit odd. Apple tried to reason that the 3G chips directly affected the battery life of the phone,but not many chose to believe it.

Over the course of the next 12 months, numerous improvements and new features were brought to the software of the iPhone but the hardware remained the same. People were eagerly awaiting the launch of the next version of the iPhone, rumored to bring another similar revolution, including 3G. Apple finally made the announcement of the iPhone 3G, but once again, failed to impress the masses. The only major hardware changes that the iPhone brought was the addition of 3G and GPS. The iPhone software was upgraded by leaps and bounds. Still, the basic features, that one expects to see in a smart phone, were lacking in the iPhone. One important announcement made by Apple at the event was that the iPhone 3G would be made available at a price of $199 now.

Today, the iPhone is pegged to be launched in over 70 countries around the world. True to the Apple legacy, the iPhone remains locked to a mobile service provider and will be sold along with contracts only. Although unlocked, no contract phones have been made available in certain countries, they have been priced ridiculously high. Talks, about the iPhone being launched in India, have been around ever since Steve listed the 70 countries during the annual event. There have been numerous speculations about the launch date and pricing of the iPhone in India. Not so long ago, it was confirmed that instead of one exclusive service provider, India would get the iPhone from both Bharti Airtel and Vodafone. Recently, Bharti Airtel went on to announce that the phone would be officially available for sale on August 22nd, 2008. Even then, the pricing of the iPhone remains a closely guarded secret.

Now, there have been various talks among the enthusiasts that the iPhone would be priced anywhere between Rs. 8000 to Rs. 37000. Now, most of these speculations were based on the pricing of the phone in the US which is $199. However, people fail to notice the fact that the price is subsidized with a 2-year contract with rentals as high as Rs. 2,500. Now, the iPhone could be priced so low, thanks to the way the US telecom market operates. Then, there have been speculations that the iPhone would be priced around Rs. 20,000 to Rs. 25,000. Personally, I think this should be the price that the operators should eye. But that doesn’t seem to be the case as some reports indicate that the operators are eyeing a price of Rs. 31,000 and Rs. 36,000 for the 8GB and 16GB iPhone respectively. If you ask me, I wouldn’t be surprised if this does indeed happen, even though I highly doubt the credibility of these reports.

Without a doubt, I can safely say that the iPhone is considered as a gadget with a high flaunt value. Today, the gray markets of Mumbai are selling the iPhone for prices upwards of Rs. 50,000 and are still making a good sale out of it. Any sane mobile operator would do a good market analysis before pricing the product which has been anticipated for over a year now. But how much is the iPhone really worth?

Let us take a look at the ‘features’ that the iPhone offers

1. Exceptionally great User Interface (UI)

2. Slim and Sleek design

3. A Large 3.5-inch

4. Great multi-touch input

5. Wide array of applications and software features built into the phone

6. Other standard features

As it is clearly seen, everything about the iPhone screams ‘User Experience’. iPhone owners would agree with me that the iPhone provides a truly amazing user experience. No matter what the task may be, doing the same on the iPhone is a league of its own. But does this warrant lack of features? Does a good UI justify everything the iPhone is not capable of?

Let us take a look of ‘features’ the iPhone lacks or needs improvement with (In no particular order)

1. A better camera:

A lot of users have complained that the 2MP camera on the iPhone does not do justice, since cameras of much higher resolutions can be found in the phones in the same class. Yet, the iPhone beats any other phone on the world’s leading photo-sharing site.

2. Alternate means of text input:

Many users claim that the iPhone lacks a physical keypad and hence there is no haptic feedback possible on it. This proves as a major hindrance when typing text on the iPhone.

3. Ability to share media via Bluetooth

4. Ability to Copy/Paste text

5. Office Apps

6. Flash

…and many others.

If you compare the iPhone with the other phones available in its class, such as the likes of HTC Touch Diamond, the Nokia N95/96 or the Blackberrys, it can be observed the iPhone seriously lacks the feature power. Office applications, better cameras, file-sharing and keypads, the phones score highly over the iPhone. But the areas where the iPhone scores over these phones are not even present in them.

So ultimately, how much is the iPhone worth?

Personally, after looking at the current market trend and the iPhone popularity, at the same time comparing it with the features offered by the other phone, I feel a price tag of upto Rs. 21,000 would do justice. Anything above the price Rs. 21,000 is simply an overkill. One of the biggest disadvantages in buying the iPhone in India is not actually related the iPhone. It is the lack of 3G in India. Even though DoT has actively picked up its pace towards the 3G auction, the consumers will not see the fruits until next year. So, paying such a high price for a phone that is marketed as a great browsing tool but without enjoying its most important feature is not something that I would do.

What price would you pay for the iPhone?

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