Demystifying iPhone 3GS in India

by Ankur Gupta on July 28, 2009

iphone-3gs

iPhone 3GS, the latest drool worthy gadget to be released from Apple secret labs, brings to the table faster hardware along with new features that makes it worth the upgrade from iPhone 3G. All speculations regarding the success of the 3GS have been put to rest after Apple posted brilliant numbers in the June quarter. The phased launch of the iPhone worldwide has left many Apple lovers waiting with bated breath to get their hands on this ethereal gadget.

Rumors galore on speculative date and pricing

Apparently, there have been unconfirmed reports that iPhone 3GS launch is expected to take place on 9th of August in India along with bunch of other countries. Apple product launches have always been shrouded in mystery and this one too only has a few details known about it. If indeed the rumored date is unfabled then one can only cogitate over why there have been no promotional campaigns with just about a fortnight left for the launch.

Coming over to the most talked about facet of iPhone 3G in India, its pricing. Many blamed the atrocious pricing of iPhone 3G for its dismal sales numbers in the country. While that can be held partly responsible, it seems the iPhone 3GS is going to be priced along the same lines. Rumor has it that the 16GB version of iPhone 3GS from Airtel will be priced at Rs. 32,000 while the 32GB will carry a price tag of Rs. 39,000. The respective numbers from Vodafone are believed to be less by about a couple of thousand bucks, but I personally do not see any reason for the differential pricing at least at the time of launch.

Decoding the price code

If any of you expected the iPhone 3GS to be reasonably priced this time around, then you haven’t been acquainted with Apple’s pricing regime here in India. Apple retails itself as a premium brand and the high price is justified for the awesome products it makes. But, one reason I believe the iPhone does not deserve a high price tag in the country is solely for the reason that Apple does not provide service for iPhones sold in India. The after-sales service has been left to the official carriers of the device which is pretty much pathetic. The concept of subsidized cell phones is alien out here but had Apple delved into unexplored territory it could have reaped huge rewards. The only argument in favor for not selling a subsidized iPhone lies in the fact that India has very low ARPUs and the telecom industry growth in the country is driven by volume.

Future course

The high price tag coupled with non-availability of 3G spectrum with official iPhone carriers point towards a bleak future for the iPhone 3GS in India. People would rather prefer to opt for the older iPhone 3G model if it retails at a price point below Rs. 25,000 though that would be subject to availability. Official carriers haven’t been too keen to market the device to attract buyers which has only worsened the situation. Apple needs to buckle up if it needs to garner significant profit from selling the iPhone in a country having over 300 million GSM subscribers increasing at a phenomenal rate. Offering after sales service along with technical support is the principal thing that needs to be done. Roping in new carriers especially the PSUs, MTNL and BSNL having the coveted 3G spectrum, would be a big step forward in making the iPhone a success in India.

All said and done, Apple should not be castigated alone for the failure as there are various factors that decide the success of a gadget. Rumors and speculation can only take us so far, hopefully Apple will have a few tricks up its sleeve that will be revealed as the days to the launch unfold.

Reader Comments

Demystifying iPhone 3GS in India | Smoking Apples | India Updates
August 3, 2009 at 3:27 am
By: Neil Mukherjee | Iphone India
March 2, 2010 at 12:40 pm
By: RJ | Iphone India
March 2, 2010 at 12:50 pm

Reader Comments

Sanat Gersappa July 28, 2009 at 5:54 pm twitter.com/sanatgersappa

I really think Apple should untie the iPhone from the 2 operators since they are not doing anything special for the iPhone - no subsidy/special services etc…not even 3G - though the Government is to blame for this.

If Apple opens up the iPhone to other networks, it might spur more sales and ensure some competition between operators to provide more attractive iPhone-specific packages.

   

Swaroop Hegde July 28, 2009 at 6:41 pm Twitter.com/SwaroopH

I don’t understand what’s “special service” the Indian carriers are providing anyway. Are the voice/data plans better than what they give to normal subscribers? Apple might as well sell the iPhone unlocked.

   

Aayush July 28, 2009 at 6:42 pm aayush.me

As well written as this article is, Ankur, the headline is quite misleading. Anyone reading it would immediately think that the article will provide confirmed deets on when the iPhone 3GS will be released and how much it’ll be priced at. Instead, what we have here are the same dates and figures that we’ve already heard about and have been confirmed be neither Apple nor the cellular carriers.

It’s disappointing.

   

Ankur Gupta July 28, 2009 at 7:41 pm

Sanat and Swaroop,
Yea, I totally agree with you guys, neither operator has taken any steps to make the iPhone appear attractive to the Indian consumers. If the iPhone 3GS is marketed the same way, the result wouldn’t be much different.

Aayush,
I’m gratified that you found the article well written but I’d disagree with the headline part. The article aims at providing an insight into various unknown aspects of the iPhone rather than just quoting confirmed figures, which pretty much justifies the title. It wouldn’t have been titled the same, had it been concerning the latter.

   

rajnish July 28, 2009 at 11:13 pm

I suspect there is a 100% duty that is put on the iphone by the government.
You can always get unlocked phone from singapore. It should be much cheaper.
but I don’t know why you would want to cheat the government of taxing the rich people.

   

kuld33p July 29, 2009 at 4:49 pm revolutioners.com

Its really nice.. by really need the information regarding the price of the new iphone in india.

   

Mehul July 29, 2009 at 10:27 pm

Ankur, routine article mate! No offense though:)

The iPhone 3G is still priced at 31k which is almost 8 grand higher than the best smartphone from other brands in the Indian market. Clearly, Apple isnt interested for a successful breakthrough in the Indian market, they are more than happy with the numbers they are doing in the US n other countries. The 3GS will also have the same fate if they price it 30+. If it starts at 25, then people will surely think of making a choice . But then again, the service dept still sucks!

Hey Apple, are you listening?? India’s calling..

   

YoG! July 30, 2009 at 1:31 pm

iPhone 3GS (16 GB) in USA (without contract) is $749 (incl. of taxes) i.e. ~ 35000
iPhone 3GS (16 GB in India (Grey Market) is Rs. 46000

It so happens the original price is about 7 - 8 K lesser than grey price when launced. Fact’s say it !!

I personally feel the price for 3GS would be far much pricey than its predecessor when launced.

I have a facility to get one for myself from US, but I am still not able to decide should I be waiting for it to launch in India or should I really go ahead and buy from US.

What do you guys suggest ?

   

Milind Alvares July 30, 2009 at 2:41 pm soggysh.it

If it’s a matter of a few thousands, I’d suggest you get it officially. Otherwise you will forever be running around trying to get and stay unlocked, and all that whatnot. Just wait a month and see the price difference for real. And please, not grey market!

   

Pradeep Rao July 30, 2009 at 2:59 pm

Actually Vodafone actually charges you much more for net usage if you are using an iPhone purchased from them. While worldwide the iPhone is sold with unlimited internet, not so here in India. I normally pay Rs 500 for 600 MB of usage per month on any ordinary phone (including the iPhone if not purchased officially in India)
If purchased officially, then Vodafone charges you Rs 500 for 25 MB for the “iPhone” plan. SO they actually charge you more if you buy the phone from them!!!
At least Airtel offers you 500 MB free per month for 12 months when you buy an iPhone from them. (Unfortunately Airtel coverage sucks & they specialize in dropped calls every 30 secs, at least here in Mumbai)
I use an officially unlocked iPhone & I pay regular charges to Vodafone, not the artificially inflated “iPhone” plan.
Basically, I have a feeling that Airtel & Vodafone have been bribed by Nokia, Samsung et al to keep the iPhone unattractive. Only hope Apple wakes up at some time & realizes this!

   

Pradeep Rao July 30, 2009 at 3:03 pm

Sorry, that should have read Rs 500 for 250 MB

   

Abhilash July 31, 2009 at 12:54 pm twitter.com/abhilashjha

When we talk of Apple not looking at realistic pricing or subsidised pricing offered thrugh the service providers, we perhaps do fail to look at the similar pricing of such other smartphones, Nokia N97, N95, Samsung Omnia, Blackberry Bold and Storm, Sony Xperia, HTC Diamond; all sold in a range of 25k to 42K at the time of launch. The apple strategy of being called a premium product maker may have to do with this as well. Some people may be turned off by the idea of buying a premium product itself.
Another thing that has gone against Apple pricing be somewhat nominal is the Dollar-Rupee conversions, at the time of its launch next year rupee was at a pretty low point as well and this year it seems to be worse, hence a couple of Ks added to the original price from last year.
For what it offers in its true form with all the supporting services enabled, very few handsets stand to give an iPhone a good fight, but in a market like India, where govt policies delay services like 3G and consumer mindset of getting things free(hence, a movie/music online store may not succeed), an iPhone turns out only to be a luxury. People are happy purchasing a non-3g/3g device with 3-5 Mp and touchscreen at price points of 15-20K. While these devices mostly come with lesser memory, an Ok UI, and scarce support for applications, they are willing to compromise because they do not see the point in paying extra for some thing that ain’t even working yet.

   

ricks August 10, 2009 at 11:10 am yahoo

ater the success of 3g in india & the marcket condisions in india it is absuletly necessory for apple to make 3gs available as soon as possible in indian market.it will sure-shot make a land mark in india.

HEY APPLE ARE U LISTNING U NEED 3GS for god sake.

   

RJ September 12, 2009 at 10:57 pm

The 3gs is better in some ways which Indians might appreciate

1.) Better camera and video
2.) Better battery life ( trust me on this one, especially for the talk , ipod features)
3.) much more stable software ( but then again some indians will just be hacking away at their phones)
4.) faster browsing over wi-fi.

   

Neil Mukherjee December 3, 2009 at 6:46 am twitter.com/NeilMukherjee

Nice write-up, Ankur.

Very useful insights from Yogi, Pradeep Rao and Abhilash.

I have been using an iPhone here in US and Canada but it got stolen a few days before my relocation to India.

I wanted to see if if its worth buying a new one when I get back to India but doesn’t look like it owing to its high price, lack of Apple support, limited data plans, lack of wireless infrastructure (3G).

   

Megha Agarwal January 7, 2010 at 8:10 am

When is the iphone 3Gs getting here? I;m sick and tired of waiting for it! I don’t want to buy it in the grey market because of the software issues related with it. Does anyone have any idea when it might be released?

   

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