Not Airtel but Apple decides iPhone prices

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Not Airtel, but Apple decides iPhone prices

iPhone sold at reasonable price in India; Would be sold at same price in any other country in the world, says Airtel

Idhries Ahmad

Friday, August 22, 2008

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NEW DELHI, INDIA: Airtel has clarified that it has no say in the pricing of Apple's iPhone 3G in the country.

Responding to query regarding that the iPhone 3G was excessively priced in India, Sanjay Kapoor, President, mobile services, Airtel, said that the operator was only involved to bringing the iPhone 3G to its customers in India and Apple made all the decisions regarding the pricing of the iPhone 3G in the country.

"Airtel doesn't make any money from Apple iPhone sales in the country. We are only involved in providing the iPhone and its rich experience to our customers," Kapoor told CIOL.

"We are only a pass through and make sure we bring this revolutionary product and best experience to Airtel customers in the country" he added.

The Airtel iPhone 3G, priced at Rs 31,000 and Rs 36,100, for 8GB and 16GB respectively. was unveiled today at 12.00 midnight in six cities: Delhi, Mumbai, Chennai, Bangalore, Kolkata, and Hyderabad. Later, the phone will be available in 400 stores across 65 cities in the country.

iPhone customers on the Airtel network can download 500MB free every month for first 12 months. They will also have access to applications like MChek and other e-commerce applications. The phone comes locked to the service provider, which means a user cannot switch his or her operator while using an iPhone 3G.

Kapoor also clarified that the Apple iPhone 3G was sold as at a reasonable price in India and would be sold at more or less at the same price in any other country in the world.

"Users are only comparing the price here with only that is paid upfront in the developed world." said Kapoor.

"That is not a true reflection. In the US, you enter into a non-cancelable contract with those service providers and pay the price for the iPhone over the long period of time," added Kapoor.

The Apple iPhone 3G is available for $199 (Rs 8,358) in the US, plus $99 (Rs 4,158) as an annual contract with the single mobile operator AT&T, unlike India where the handset is linked to both Vodafone and Airtel.

Explaining why a similar mechanism couldn't be worked out in India, Kapoor pointed out the market dynamics in India make it difficult for such an arrangement.

"Unfortunately or fortunately, the Indian market has no such mechanism. Even a postpaid connection here is a method of payment and not a contractual obligation that a postpaid customer has with service provider," said Kapoor.

"So, to bundle the product in that fashion is not possible and therefore, the entire price has to be upfront in the market", added Kapoor.

"I believe that the unbundled product would not cost any less in any other parts of world," he pointed out.

Giving details, about the excitement iPhone has created in the country, the Airtel president said already 200,000 users had pre- registered with operator for mobile phone. And, 52 percent of those users were from top six Indian cities, he added.

Kapoor added with the introduction of the iPhone 3G, Airtel forecasted an immediate upsurge in mobile Internet traffic in the country.

"We believe an average iPhone user will download 250MB of data very month," he said.

©CIOL Bureau

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Read Comments

B S Kumar said on 9/16/2008 10:29:12 PM:
Customers in America pay a small price for the phone and are stuck in a two year contract paying a minimum of 45 dollars a month. Their social security numbers are used to track their credit worthiness and they cannot afford to screw up their credit history. In India, there is no mechanism to make people get stuck with this type of contract and hence all the long words like "Market dynamics". Enjoy the free country, but pay for the bl@@dy phone, Indians!

to B S Kumar

asis maikap said on 9/14/2008 1:15:22 PM:
why the prices vary in differen country?????

to asis maikap

Ravi said on 8/30/2008 4:02:05 AM:
buy in USA use it in India,someone willdefnatly decode AT&T aggrement is it advisable? Prashan_sg@rediffmail.com

to Ravi

Nazir warsi said on 8/24/2008 4:15:32 PM:
This service is very good and helpful for knowledge and future planning.....

to Nazir warsi

Rob said on 8/22/2008 11:29:16 PM:
Well, so many rich people will buy it to show off.

to Rob

Parminder said on 8/22/2008 11:01:45 PM:
iPhone was launched in Australia last month, however the prices quoted in India are very very high as compared to those in Australia, hence it only targets the upper segment of the customers, hence i would not agree to what Airtel has to say about the number of subscribers, but at this rate it cannot be a success in India considering about the average segment. Airtel ....stll not remarkable.... !!

to Parminder

Reporter said on 8/22/2008 4:56:16 PM:
Binoy, You are right it is a mistake it should be 500Mb or 500MB not MBps or Mbps.

to Reporter

Reporter said on 8/22/2008 4:27:16 PM:
What ever the Airtel guys say, it is still at the higher end. The prices are too much and will target the most upper segment of the market, which actually should have been the mid level corporate market. These prices will not work for a long and have to come down. Also doesnt it look funny what the Airtel guys have said, "Airtel doesnt make money out of all this" haaaa are they making fool the 3G and 21st generation of people; gimme a break!!!

to Reporter

Binoy said on 8/22/2008 3:42:03 PM:
what does 500Mbps free every month mean ? 500 MB per month free ?

to Binoy

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