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Follow UsBANGALORE, INDIA: Apple iPhone 4 has officially reached the India market. However, will this high-end smartphone make a big impact in India, which is still ruled by entry level phones on pre-paid models?
The upfront cost of buying a 32 GB iPhone 4 in the US, on AT&T Network, will be $299 or Rs 13, 519. However, buying the same in India, from Apple resellers, will require subscribers to shell out Rs 42,000 ($932)!
Apple's exclusive network operators for iPhone 4, Airtel and Aircel, have rolled out attractive tariff schemes in order to woo customers. The operators are offering 50 per cent buy back benefit on the cost of the handset.
On one hand where Aircel's advertisement says, "You get back your money when you buy from Aircel", on the other, Airtel attempts to attract a potential subscriber by promising a return of Rs 24,000, although with conditions attached.
Airtel's schemes
Mobile services giant Airtel is offering up to 50 per cent savings (per month), in the form of free talk time from Airtel to Airtel. These plans range from Rs 600 to Rs 2,000.
A person opting for the Rs 2,000 pack, will save Rs. 1,000 a month, thus saving Rs 24,000 over a period of two years. In this plan Airtel is offering 1,900 minutes of Airtel to Airtel calls, 1,350 MB of data at 3G speed and 2,000 local SMS free. For the Rs 600 plan subscribers will get 550 minutes of Airtel to Airtel local calls free, 500 local SMS and 300 MB of 3G data free. There are seven such plans that Airtel is offering.
Aircel not behind
Aircel has also introduced a new pricing model allowing customers to recover the upfront cost of the smartphone, on select plans over 24 months, the company said in a press release.
“Aircel's Western mobile subscription plans has seen a limited success in the past. However, with iPhone 4, the operators are hoping a reversal, feels Naveen Mishra, senior manager, Telecoms Practice, Cyber Media Research. “Operators are aware that data usage is increasing and average billing of high-end smartphones users range between Rs 1,000 - Rs 1,500. The two-year subscription scheme will ensure a steady revenue for operators.”
Sales numbers may not be great considering the up-front investment one needs to do. Nevertheless, Apple iPhone's appeal is sure to bring some traction among the post-paid subscribers, feels Shiv Putcha, principal analyst, Emerging Markets, Ovum Telecoms.
He feels that Apple is in a different league when compared to its rivals and the brand following will drive Apple's sales in India too.
There are 800 million mobile subscribers in India and the market is second biggest and fastest growing in the world.
However, most handsets sold in the country are low-end feature phones. A majority of mobile handset shipments in India are to first-time buyers, who fall in the price band of 'less than Rs. 5,000'.