India is gearing up for the iPhone launch and it seems no less than the cliché climax of a Bollywood thriller. All pop and no fizz. The product has been packaged and marketed in a wondrous fashion. And Bharati Airtel and Vodafone do not fail to add a pinch of suspense in terms of the price tags.
iPhone has been tagged and promulgated as an aspirational brand sought after by millions. After selling 1 million pieces in the first week of its international launch the iPhone 3G fever has caught on to India. But in the midst of all the excitement and anxiety (for many potential buyers) there is apprehension. In a country where Mac is still gaining momentum the Apple iPhone will face unique challenges compared to its launch and survival in international markets. In fact e
ven Bharati Airtel and Vodafone, as partners, have a task ahead of them.
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Firstly, the adoption of the promising new age device in Indian markets will depend on the price tag. Priced at Rs 31,000 for the entry-level 8GB memory mobile phone and Rs 36,100 for the 16 GB avtaar, it is sure to encourage the grey market. Today you can get an 8 GB iPhone from the grey market in just Rs. 28, 000, and the 16 GB for Rs. 34, 000. On the other hand US mobile operator AT&T is offering iPhone 3G handsets for a meager $ 200 (Rs. 8000), but with a three year lock-in contract with subscribers.
Bharati Airtel and Vodafone are planning on selling the prodigious handsets through 250, 000 retail outlets. But with Nokia dominating 80% of the market share the distribution process would not be easy. And secondly Indian service providers do not sell hand sets (like in the US). The Airtel-Vodafone presence will only address 40% of the market.
Tying with two different service providers seems like a wrong move. This leaves the consumer with no choice as he/she cannot change between services. Individuals would have to opt from two different products – Airtel iPhone or Vodafone iPhone.
The Rs. 5, 900 crore smartphone (converged device) market has a few competent players. The iPhone 3G will face stiff competition from Nokia (who recently announced the launch of N96), Samsung Omnia, Blackberry Bold and HTC Touch Pro.
Industry professionals even believe that the entry of the iPhone will trigger off novel prospects for mobile telephony and MVAS. The iPhone owner is sure to benefit the most from the 3G technology, soon to be launched in India.
Though the future seems bright (for owners and the telecom industry) there is a lot of thinking to be done. Is the iPhone really going to skyrocket the smartphone market in India? Will the iPhone fizzle out an uncanny death? Will Airtel and Vodafone be able to meet the demand and reach out to the market? Will Indian competitors eventually win the battle?
