Tags: Airtel, Apple, Apple iPhone, Apple iPhone 3G, India, Vodafone

Apple iPhone unlikely to come cheap in India

But it still could set a new benchmark for high end mobile phones.

It is confirmed that the Apple iPhone 3G would be launched officially in the Indian market before the end of the year.

It is also confirmed that both Airtel and Vodafone would be selling it in the Indian market.

However, the involved companies have left out the most important details. We are not sure when the Apple iPhone 3G would go on sale and how much it is going to cost the customer (phone and the relevant packages).

Apple would begin selling iPhone 3G in around 20 nations from next month.

Customers in US market would get it for USD 199/299 depending upon the model. But they would have to get into a 2 year long contract as well.

In Canada, iPhone buyers would have to get in a three year long contracts.

The problem with Indian markets is that people generally do not go for contract phones. They buy the mobile phone they want and get a SIM card from a mobile service provider.

Apple iPhone 3G is going to be different. Vodafone and Airtel are likely to sell it in locked form blocking third party SIM cards. It is also not sure how long would the customer be required to pay the same company for the iPhone.

US and Canadian mobile service providers are subsidizing the price of the phone to offer it for cheap.

Indian companies are unlikely to do so because the calling rates in India are very low compared to the developed markets.

Bharti Airtel CEO Manoj Kohli has already said in a statement that there is no question of subsidizing the handset in India. He said: “US operators are able to subsidize handsets because they can make up for that with their call charges. They charge rates like 25 cents a minute. In India, the charge is 1.5 to 2 cents a minute.”

Looks like the Indian customer would be paying a lot more than just Rs. 8000-10000 rupees for the iPhone.

However, if the iPhone is launched below the Rs. 20,000 price point (which is somewhat likely), it would set a new standard for a feature rich mobile phone. Comparable devices from Nokia and HTC are sold at obscene prices in the Indian market.