Posted by: odzer | August 30, 2008

The Airtel iPhone Mishegoss 2

I guess I was still a bit mad about the whole Apple iPhone thing. So I took sometime out and wrote an email to the good people at Apple. I just wanted to let them know my opinion on their pricing in India. I did not really even expect a reply. So here is what I wrote to them.

Click to read

Click here to read

Surprisingly they wrote a reply back to me very quickly, within hours really. Someone called Sheila from Apple customer care sent me this message.

Click here to read

Click here to read

What is clear for me after this email from Apple is that they really are blaming Indian duties, taxes and other costs for the price of iPhone in India. So now I have some really very interesting questions :

1) Why is the iPod relatively cheaper in India? It is almost a similar product.
2) How come other manufacturers who import phones into India can give their products at a far more reasonable price?
3) If the costs are indeed this high why are the operators not absorbing some costs considering they are not giving away an unlocked product?

So in the end I am impressed that they do answer their customers e-mails but I do not think in the end they really care about their flagship phone product and its sales in India. I am going to wait till the next year before I pick up my iPhone or some other smart phone product.

Note : Click here to read the previous post related to this one.

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Responses

  1. […] Note : Part 2 of this post is available here. […]

  2. Why are you so eager to get an iPhone if the iPod is an almost similar product? Do you have any problems with your communication devices?

  3. If you have read my previous post you will understand that I am a tech geek. I like newer, fancier toys but yes at the moment I do not own a smartphone and I have to use a Palm device to read business/personal mails with attachments. I would also not mind a device based on a 3G platform that will come up in March in India, right now I am stuck with a 2G device. As you can see from this post, I am not in a big hurry and I will only get a device when I feel the price factor is reasonably placed.

  4. I think service providers in India just want to make a quick buck with this hugely popular and successfully sold device worldwide.. however, customers are not foolhardy.. When the Airtels and the Vodafones realise that the iPhone is still stuck on their shelves, they are bound to slash their prices.. hey but its nice to see a quick reply from Apple šŸ™‚

  5. Pooja you are right they are in for a quick book and they want to cash on the novelty value of the product. Vodafone has already slashed the price by 1500 INR or so I hear. So the novelty is already wearing off….

  6. @ Odzer

    You probably know that Apple has revenue share agreements with MNOs. This is true wherever iPhone has been launched, including in India. This is why cross-subsidy is not financially attractive or feasible since the revenue share leaves the MNO with relatively smaller margin to play around with.

    Secondly you are seeing the early adoption phase of iPhone. Apple’s pricing is classic Marketing 101. Early adopters pay more than the masses who make up the bulk of the bell curve a bit later in the product’s life cycle.

    That you are complaining and they are replying is just part of the dance of consumer psychology. They know if you are very keen you will pay.

  7. Same case, you’ll like this.

    http://thetoptenme.wordpress.com/2008/08/20/mr-jobs-please-help-vodaphone-is-screwing-indians-with-a-800-iphone/

  8. Chirax, thanks for the link. I see now that Airtel has taken out a monthly payment plan for iPhone’s of course for credit card holders with hefty interest rates upward of 10%


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