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James Said:
Apple can always correct the strategy in India.
Since most of India is a pre-paid market, obviously the iPhone will have to be sold at full-price - the real price of the iPhone, not the subsidized price of $199 everywhere else.
Apple can then can do better marketing in India - or at least force their partners to do a better job or chose different partners.
Posted On 11/10/2008 6:48:43 AM
Re: Sameer Said:
@James
First of all, India is not just a pre-paid market, there is a sizeable post-paid market. I suspect the ratio is 65:35. Also, an iPhone is not available to pre-paid customers.
It requires you to be locked into your service provider at the time of purchase.
Also, premium phone consumers in India churn their phones in a year or less. The pre-paid guys are out of the mix, the post-paid consumers of luxe latch on to new phones and trends. Pricing killed it, lock in (which is an unknown concept in India, we are locked into our number (hassle of changing it), not a phone).
I was prepared to pay upto $400, but charging $700+ for something I know is available in other markets for less than half that, is overkill!
Sameer
Posted On 11/10/2008 7:35:07 PM
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James Said:
Apple can always correct the strategy in India.
Since most of India is a pre-paid market, obviously the iPhone will have to be sold at full-price - the real price of the iPhone, not the subsidized price of $199 everywhere else.
Apple can then can do better marketing in India - or at least force their partners to do a better job or chose different partners.
Posted On 11/10/2008 6:48:43 AM
Re: Eli Said:
As a mobile website owner, I am disappointed with Apple's demise in India.
Iphone 3g is a game-changer in other markets, leading to tremendous usage of web, over mobile spectrum and wifi. With the delay in the take-off, mobile browsing has taken a step back.
Eli
http://www.noiZemag.com/
Posted On 11/10/2008 8:12:05 PM
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James Said:
Apple can always correct the strategy in India.
Since most of India is a pre-paid market, obviously the iPhone will have to be sold at full-price - the real price of the iPhone, not the subsidized price of $199 everywhere else.
Apple can then can do better marketing in India - or at least force their partners to do a better job or chose different partners.
Posted On 11/10/2008 6:48:43 AM
Re: Eli Said:
It doesn't make sense for Apple to launch an India-specific phone. They didn't do it for the mac, or the ipod, I doubt they would do it for India, when they didn't do it for China.
What they can do is use strong arm tactics to get Vodaphone/ Airtel to subsidize the handsets like in other countries. Or, make sure they price it at a reasonable premium, but keep it open, so a subscriber can choose which network they select.
The reality is that most phone manufacturers are phasing out non-3g phones in the high end spectrum. Esp. if you travel to another country, you can use 3g via roaming. Plus, sooner or later, it is bound to show up in India.
Eli
http://www.noiZemag.com/
Posted On 11/13/2008 7:45:41 PM
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Varun Said:
I wrote this article in Dec 07 about why apple iphone wont come to india ..
now the iphone has come but still some reasons for its failure in india
http://www.fonearena.com/blog/2007/12/26/10-reasons-why-the-apple-iphone-wont-hit-india.html
Posted On 11/10/2008 10:18:24 AM
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Koneti Said:
iPhone was never a mass market product. So you can not attribute the failure to distribution model or marketing communication. Infact you do not need any of these to sell the product. We were eagerly waiting for the iphone to be launched in India with a price tag of around 15-20K. Not more than that. Infact I have done indepth googling to know actual production cost and how much Apple would keep as margin. So much for a product!. So I do not feel that Airtel or Vodafone didn't do marketing well. Even if they did big bang launch, all that they could have sold more would not be more than another 1000 pieces. Such was the anger amongst the youth and younger working generation (20-35 years working group which I represent). Ofcourse there was this $199 price thing. Infact most of the prospective iphone buyers would be postpaid customers. Why nobody in this article mentioned that fact. Airtel could have easily grabbed most of the post paid market by launching iphone at Rs. 18000 and 2 year contract. Believe me. that was the price at which i was mentally prepared to buy. I wonder why do you need an Ad campaign for iphone. I remember the first Reliance mobile phones were only available at Webworld outlets which were very few in many towns. Still we went to those select shops and ordered the phones and waited for one to two weeks to get our hands on. So this is not failure of limited retail outlets. Indian consumer can walk 100 kms and still stand in queue to buy something if he perceives "Value". iphone miserably missed that point.
Posted On 11/10/2008 6:42:00 PM
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Sameer Said:
As a hardcore Apple fan, who has enjoyed mac's, ipod videos and iconic apple advertising, I made a conscious choice to avoid the Apple iPhone.
Many Apple fans like me do not need to be sold on the iPhone 3G or Apple. There was enough press in foreign publications, gadget websites and blogs to create a buzz.
However, Vodaphone and Airtel screwed it up for consumers. Apple's premise in US was 'double the speed, for half the price'. Consumers, atleast the Apple audience in India was aware of price points, speed, features and expected premium pricing, but not rip-off pricing.
In India, with no 3G, and with the exorbitant pricing, the proposition that consumers were exposed to was flipped: Half the speed, double the price
Most consumers would rather purchase a 'jail-breaked' version from Hong Kong or a south east asian market. I am sure, the sales of the grey market, gen 1 iPhone is a higher multiple than the 'official' iPhone 3g.
Also, while they absolutely messed up on the pricing, they also messed up on the product. Indians until now, are not used to being restricted to a single carrier, atleast not on account of their phones. This is the first phone (barring CDMA, which locks you into a service provider), no other GSM phone locks you into a provider. So why would a consumer, pay double, be locked into a service provider, for a service (3g) that isn't likely to debut for another year? What were they thinking, all they needed to do was subsidize the phone to $299/ $399, if they want to lock a consumer.
I am disappointed, Apple didn't use their usual clout to beat Airtel and Vodaphone down on consumer friendly prices.
Next big thing for gadget freaks, the launch of the Google phone. Bye bye apple, welcome Google.
Posted On 11/10/2008 7:27:07 PM
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Ashish Said:
@Sameer. somewhere between 92-95% of mobile subscribers are pre-paid.
@ the authors. Rather than trying to say how Apple got it wrong. And why are they pricing it so high. Why haven't you'll pointed out that the operators in other countries have subsidised the handsets? Why has Vodafone and Airtel locked the phones on their networks if they are selling at full price? Apple has single handedly changed (ok with a bit of help from others) changed the convergence platform with the iPhone. Did u mention this in the article???
A friend of mine bought it recently. He's crazy about it. I checked it out and now i want to buy one. Now there are some great emi schemes.
Posted On 11/11/2008 12:52:17 PM
Re: Sameer Said:
@Asish, what's your source for 95% of the Indian market being pre-paid?
That sounds absurdly high.
Posted On 11/12/2008 12:14:13 AM
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Ashish Said:
@Sameer. somewhere between 92-95% of mobile subscribers are pre-paid.
@ the authors. Rather than trying to say how Apple got it wrong. And why are they pricing it so high. Why haven't you'll pointed out that the operators in other countries have subsidised the handsets? Why has Vodafone and Airtel locked the phones on their networks if they are selling at full price? Apple has single handedly changed (ok with a bit of help from others) changed the convergence platform with the iPhone. Did u mention this in the article???
A friend of mine bought it recently. He's crazy about it. I checked it out and now i want to buy one. Now there are some great emi schemes.
Posted On 11/11/2008 12:52:17 PM
Re: Eli Said:
@Sameer - you are right. 70% prepaid users.
As per an ET report in March 2008: "More than 70 per cent of the 200 million mobile subscribers use pre-paid cards and they tend to change operators."
Eli
http://www.noiZemag.com/
Posted On 11/12/2008 12:17:19 AM
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vinay Said:
Actually, Apple's iPhone has many drawbacks and price for the model which they are selling is inflation busting. India doesn't have 3G and its of no use to go for a 3G enabled handset. They're really lagging behind in marketing iPhone and probably, they might have overlooked Indian market which is world's fastest growing mobile market. India is a sucha country wherein it can change the fortunes of a company.
Posted On 11/11/2008 2:10:21 PM
Re: ashish Said:
look at the other high-end phones.. they all have 3G
Posted On 11/11/2008 4:01:37 PM
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vinay Said:
Actually, Apple's iPhone has many drawbacks and price for the model which they are selling is inflation busting. India doesn't have 3G and its of no use to go for a 3G enabled handset. They're really lagging behind in marketing iPhone and probably, they might have overlooked Indian market which is world's fastest growing mobile market. India is a sucha country wherein it can change the fortunes of a company.
Posted On 11/11/2008 2:10:21 PM
Re: Eknath Said:
I think Apple should come with a trimmed down model for iPhone. Like first generation, without 3G and without a real GPS chip.
They should sell it half the current price. And then see how it takes off. I am sure it would do a lot better.
Posted On 11/12/2008 3:24:09 AM
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Sean Said:
"in India, it would ship 100,000 phones by December 2009"
If the above quote from the article is accurate it seems a little premature to call Apple's efforts in India a failure. As a matter of fact the sources cited seem mostly interested in arguing for adoption of their own goals or methods by Apple. In this, the Indian market resembles the U.S. market, the usual suspects are always sure that: a). Apple will/has fail(ed) b). Apple should cut its own throat by lowering prices c). Apple should spend more on advertising d). Apple should sell its product through the same outlets as its competition e). Apple should change strategy to be more appealing in markets it has little interest in. Clearly, in pundit-land anyway, Apple is doomed.
Posted On 11/11/2008 10:48:36 PM
Re: Shamsher Said:
The fastest and easiest way to increase the sales would be to also allow the phone to be sold by other providers like Idea/BSNL/MTNL/Spice. By sticking to only 2 for such a large market, Apple is only hurting itself. This also makes sense since there are no contracts for the use of Iphone in India!
It also kills the grey market where number of subscribers still buy their iPhone since they dont get carrier of their choice.
Posted On 11/14/2008 4:32:02 PM
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ross Said:
The authors should read this article: http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4317
Looks like Apple is using a "soft campaign" to figure out the market before risking its reputation on an expensive blitz.
Posted On 11/12/2008 2:40:52 AM
Re: sushant Said:
That article is basless. Wharton professors have now proved how much they know. Apple (through its Imagine stores) has had a presence in India for well over 4 years now. The iPod sells like hot cakes here and with hardly any advertising at all. The Indian public is well aware of "Apple Inc" and its superior quality products and have been awaiting the launch of the iPhone since its G1 version.
Apple doesn't need to skim the market at all. If it had been able to convince the retailers to subsidize it just a bit and have a lock in period with a post paid connection, the Indian consumer would have jumped to buy the phone even if it cost around Rs. 20,000 which is still well over the subsidized cost. Allowing Apple to capture atleast 15% of the market. This would have allowed a degree of penetration and also an opportunity to learn the Indian consumer. An added gain would have been that the Indian consumer would have had an opportunity to get to know Apple Inc. But with their current strategy Apple has terribly disappointed the Indian consumer and it will take some very big gestures to undo the damage.
India is the world's 2nd largest mobile market and Apple has made a humungous blunder by ignoring this country.
Posted On 11/14/2008 1:32:08 AM
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Rajesh Said:
Why pay Rs 34k to buy a 3G phone when 3G is no where on the horizon?
Why buy at full price a device which is locked-in by the operator?
If there was no subsidy at play, why Apple didn't allow all retail mobile sellers to sell iPhone, instead of forcing its potential customers to go to an outlet of Airtel or Vodafone?
Posted On 11/12/2008 1:43:04 PM
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Comments Said:
I agree with Vinay.
Apple is a company that is very customer centric. It really takes customers interest to its business model. I (and Apple) believe India is not ready for iPhone 3G due to lack of 3G infrastructure. So there are two options: Sell a lesser phone (Edge) or wait for infrastructure to be ready before a full push. Obviously Apple decided to follow the latter right or wrong.
In my recent trip to India, I did see many users user with iPhone but they dont really have a use for it. e.g.:
- Most users dont load music by themselves. typically they pay 500 or 1000 Rs to get music loaded on it.
- Dont ever sync pictures, calendars, etc. However I sync my iphone at least twice a day in normal use.
It is still a fashion thing in India, a status symbol. However I may be wrong and it may not be generally true for iPhone users in India.
Posted On 11/14/2008 12:41:20 AM
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arun Said:
Just summing up the already discussed points..
1. Its said that iphone price cant be cut because in other countries they are locked to the carrier.. Well, in Inida, we pay full price and still get locked to the carrier!!
2. The pre-paid market maybe more. But how many of us can afford to keep changing numbers often? So, i think the class of people who want to go for iphone are not the ones who would keep changing numbers.
3. no 3g network and cant see it in near future in india. even if 3g is launched, it would be done by BSNL first. i had heard roumers that BSNL plans to launch iphone 3g with 3g by dec 2008... i doubt that will happen at all.
4. About all that marketing strategy etc.,... I feel, people who are really eager to get an iphone in india, are eager enough to keep track of updates about its launch and availability. The people who are so yearning to get an iphone wont have difficulty in getting one with the current availability. Yes, marketing could have been better, but its IPHONE from APPLE! it has already established its brand value and i dont think more marketing would help in sales directly, though it would help apple in gaining a better presence felt.
5. I dont think ppl in India are so 'desperate' that they buy mobile phones through EMI!!! (Site, Plot, Flat, Home, Car etc.,... but mobile phone!!?).
So many other reasons are being given other than high price.. Well, If approx. 50,000 unofficially unlocked iphones are already being used, doesnt it prove that bringing the price to some 'normal' range will be a perfect start! Its holiday season and newyear ahead... People are waiting!
Posted On 11/15/2008 1:06:31 AM
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