Today has been a bit disappointing day for people in India who were eagerly waiting for the iPhone 3G to be launched in India. Today both, Vodafone and AirTel have come out their pricing strategies for the new iPhone, which will be made available to Indians on August 22nd 2008. Both, Vodafone and AirTel are charging Rs. 31,000 and Rs. 36,000 for 8GB and 16GB iPhone 3G respectively. This price is beyond what, people had earlier anticipated for the iPhone 3G. On the top of that, the iPhone 3G that will be sold by Vodafone will be 3G disabled. You have to pay Rs. 10,000 to Vodafone and Rs. 5,000 to AirTel as a booking amount. Just imagine, you pay so much money and then you have to stick to that service provider, the iPhone functions are not that great if you look at it from a mobile phone perspective but yeah, its multi-touch interface is freaking best out there. Many of my friends who were eagerly waiting for the iPhone are a bit disappointed by the pricing that has come out. Many have changed their plans to go for the iPhone and are thinking of spending money on a high-end phone from Nokia or Sony Ericsson that give more functionality. So what do you think would there be as many takers for the new iPhone 3G as the providers would have anticipated earlier?? By the way tomorrow there is a iPhone launch even in the Bangalore HQ of AirTel. Industry experts are saying that in India, 100,000 iPhones will be sold in the coming 12 months, but does this kind of pricing support that forecast. I think the initial hype will push up iPhone sales but then pricing is still a dampener for many and if they don't bring down the price then, Apple, Vodafone and AirTel would certainly miss their forecasts!! One good news is that black market guys are working towards cracking the iPhone 3G and they would price it Rs. 5,000 to Rs. 6,000 lower than that of Vodafone and AirTel.
9:34 AM
Hi Vikram,
Agreeing to the thoughts, I dont believe that there will be many takers for 30K device.
One thing that bugs me, In US iPhone 3G is avaialble at 199$ with AT&T contract, and here in India it is coming with Airtel and Vodaphone, then why it is so costly.
Do we have higher tax rates or unconducive policies or high profit appetite?
In both the scenarios, India and US, who is making profits, who is sharing the low price burden?
2:21 PM
Yeah Amit, you are right, even I dont think that there will be many takers for this device, but it will sell though. In India, people have money to buy these kind of things especially in metros but not Tier1 or Tier 2 cities. Also, in US it is cheap as there are subsidies attached to the iPhone but there is no such thing in India. Anyways, after some months, AT&T is going to sell the unlocked version of the iPhone 3G but that will cost somewhere between 500 USD to 600 USD. So in the both the cases Apple is the one who is making money along with the providers. By the way it costs only 250 USD to 300USD for Apple to build the iPhone.
12:14 AM
It costs only $173 for Apple to build the iphone.
4:35 AM
thnx for sharing this,
4:40 AM
How ever my source was iSuppli which is a industry renowned market research firm. Isuppli has, like Semiconductor Insights before it, taken an 8GB Iphone to pieces and said the total bill of materials (BOM) and manufacturing cost is $265.83, delivering a margin of 55 per cent.
Source - http://www.theinquirer.net/en/inquirer/news/2007/07/03/apple-iphone-costs-265-to-build
11:11 PM
I think it was Engadget that gave me this information. I will try to search up in the blog and send you the link.