Craze over iPhone – Is it justified?

The entire Indian blogosphere is buzzing with iPhone price announcement (from Vodafone)- most of them seems pissed off.

Indian mobile operators have their own reason to substantiate the Rs. 31K price for iPhone – In US, iPhone is sold to operators for $300, they in turn take a hit but in the long term will monetize via data usage – the same may not happen in India, because of lack of 3G infra.

Here is the summary of the pricing from Vodafone and Airtel:

  • One needs to pay an advance of Rs 10,000 to confirm your booking (Airtel is charging Rs. 5K).
  • 8GB & 16GB models, priced at Rs 31,000 ($710) and Rs 36,100 ($820) respectively
  • Airtel is even planning for a midnight launch on Aug 22nd.

It’s too early to say operators may/may not have a tough time selling the product (remember, it’s still a niche product, a show-off, tool-to-grab-attention – so initial adopters will still embrace the product.

Moreover, isn’t pricing of a product directly proportional to the user interest (aspirational branding)? Unless there is a demand-supply gap, where is the “niche-ness” (heard of Zara’s pricing strategy??

What surprises about the entire iPhone saga is HTC’s lack of aggressive advertising – they have 1 TVC which sucks badly and apart from that, I haven’t yet seen any other marketing campaign.

What do you think can potentially break this crazy pricing?  – an ulocked iPhone (the earlier version was available for 19K in the gray market)?

Have a look at which part of India is searching for iPhone

Karnataka, Gujarat, Maharashtra and Delhi.

Recommended Read: HTC vs. iPhone, Price of 3G Phones in India,

What do you think?

19 Votes

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