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iPhone in India: Nokia Worried? Plans Internet Service in Low Cost Handsets

After Vodafone’s iPhone pre-registration, it’s Airtel’s turn. Now that both the operators have joined the iPhone hype, Nokia has all the reasons to get worried and secure it’s turf.

Nokia’s market share in India is ~60% and much of that has been achieved thru’ distribution and operator partnership. iPhone’s entry, expected price point (available for $199 in US, so maybe 10K in India?), and most importantly, the coolness and associated hype-ness can dent Nokia’s market share in India.

Commenting on Apple’s new product offering, Olli-Pekka Kallasvuo, president and CEO, Nokia Corporation, said: “iPhone is going to have an impact on Nokia’s business in India. First, it is a new competitor, and second, it will increase customers’ interest in the market.”

Nokia, which has been betting big on its internet-based services, including gaming, music and global positioning system (GPS), under its Ovi brand name, also plans to introduce phones ranging from the very entry-level to mid-range to internet-based ones.

This will enable the company to counter the services provided by iPhone by giving the customer internet data services at affordable prices. [source]

Nokia is launching online services for low cost handsets as well

..looking at microfinance as a major initiative to increase mobile penetration in India from the current 26 per cent.The company is running pilots and trials to gauge consumer response in select markets and will soon come out with specific offerings to make buying mobile phones more affordable.

In addition to increasing its existing fleet of rural vans, the company will also be reaching out to villages across India to showcase the relevant product portfolio and solutions to create awareness on the use of mobile technology.[source]

In the end, all that matters is whether consumer benefits from these price wars or not.

What’s your opinion?

The much awaited Ovi service has been delayed by almost 2 quarters.

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