How do you buy an iPhone in India for Rs 1654? Answer: with easy monthly installments offered by Airtel and Vodafone of course!

Even though the iPhone is cheapest in India, the Rs 31,000 tag might not be affordable to all. Sensing that India is the land of EMIs and is price cautious, the telecom companies have introduced EMI scheme for the rest of us.

Airtel EMI Options lets Visa card holder of ICICI, SBI, Citibank and HDFC bank customers to avail spot EMI options at Airtel retail outlets. You can get installments from 3 months (from Rs 10,333/month) to 24 months (Rs 1654/month).

Vodafone EMI Options lets Credit Card customers of Axis, Citibank, HSBC and Barclaycard bank to avail installment options to buy an iPhone. Avail installments from 3 months (from Rs 9880/month) to 12 months (Rs 2470/month).

Note that Vodafone’s iPhone EMI is lower as their iPhone costs Rs. 28,000. The catch of course is that Airtel offers free 500MB/mo EDGE data transfer, while Vodafone makes you pay 200 for the activation itself. 

So which one’s the best deal then? From what I see Barclaycard bank (Vodafone) and HDFC (Airtel) seems you’ll pay relatively less than EMIs from other banks. In case you’ve gone broke after paying a fortune, worry not. You can convert your purchase into an EMI option.

Service Tax extra. Processing and pre closure fee as applicable. Charges are subject to revision from time to time. As always, read up on the fineprint before you sign into anything. The offer is valid till 30th November only.

Are you ready to live the iPhone dream now?

The current standing price for the iPhone in India is Rs. 31,000 and Rs. 36,100 respectively for the 8GB and 16GB models. This seems to have everyone in a tussle as to why a device that was touted to be “half the price” actually turned out to be three-to-four times more. I’m not in the least bit disappointed; it was more than expected. The answers lie in historical patterns as well as present marketing. Let’s start right from the beginning.

Apple has never seen India as a potential market for anything except the iPod—and that too five years after the first iPod debuted in the U.S.A.. It was around the middle of 2005 that iPods began to roll into the country and one would see them everywhere (a few departmental stores had them too). India has never been on Apple’s radar as a market for Macs, the iTunes Store, or the Apple TV. It would be a really far fetched bet to believe that their latest gadget would be any different. Heck, Apple itself is not selling it either. It is being brought in by the telecom giants Airtel and Vodafone. Apple resellers are taking pre-orders and have reportedly said that they’ll be selling the phones, but again, they’re being paid by either of the two telecom companies to do so, not by their parent company Apple.

The price tag of $199 is for locked phones and we know that AT&T is shelling out good money to subsidise the price and keep it that low. That means the price cut is at the provider’s loss, who plans to offset it by selling them in large quantities and levying outrageous charges on customers in the form of recurring rentals for the entire duration of their multi-year contract. That ploy might work in India too, but it would be a gamble because the majority (and I mean majority) of the country has never used a smartphone before. The ones who have, have been using Blackberrys and Nokias, two very reputed brands in the country. A lower price of around Rs. 25,000 might be good to sell it as a ‘smart phone for the masses’, but the masses in India:

• cannot afford a phone for Rs. 15,000 or more; and
• don’t particularly care for Apple as a phone company, especially one that wants you to spend about Rs. 20,000 on their phone.

In a market which has never associated Apple with anything except music players, bringing in a new device at their own loss is a risk companies are not going to take so early in the game. Maybe a few months down the line we can expect a price cut (like what the Motorola Razr saw), but the telcos will want to make the most of it while they can play off the hype that the international market has created in people’s minds. Remember, the mainstream crowd hasn’t heard most of the problems the iPhone 3G has been facing. It’s only us, who follow technology news like we do, who know what’s really happening.

Then there are those who are jacktastically converting the international prices of $599 and $699 for contract free iPhones to Indian National Rupee and saying that the price is still high. We can’t do much about that. For what it’s worth, I think the price tag of $599 or more for an iPhone 3G is very high in and of itself, but that’s the subject of another discussion.

The iPhone has been priced relative to other smart phones in the market and, comparatively, it holds up pretty well. The 8GB iPhone is almost in the same price bracket as the 8GB N95 and, similarly, the 16GB model has a price close to the N96’s (argument of features and usage plans aside). It is also priced near about the same as the most expensive Blackberry. Plus, you’re paying for the Apple brand, so if you like, you can accept that as a reason for any pricing offsets to the other phones in the same segment.

In any case, people will buy the iPhone in the coming month or two out of sheer hype and on the basis of whatever little promotion the providers can come up with. Price will not be a deterrent for those who can afford it. For those who can’t, well, I don’t think they were bothered in the first place. Hopes of a price slash are not very far fetched, seeing as how the first generation iPhone saw a slash merely months after it was launched. Plus, if iPhone sales don’t match up to the expectations of the telcos, the laws of economics will step in automatically.

[EDIT]: I got my price for the N95 a little wrong. Still, the N95 is much older than the iPhone 3G, so it is bound to be cheaper in a country like India where prices drop fast enough to baffle Newton’s laws. (Thanks to Krazzy for the price headsup)

After Vodafone, Bharti Airtel has taken up the gauntlet and mass emailed all the potential users that had shown interest in buying the iPhone. However, unlike Vodafone, Airtel has some really grand plans for the iPhone Launch.

As per an email that this author received, Airtel has planned to throw open the doors of three of its stores— one each in the three cities of Mumbai, New Delhi, and Bangalore—right at the stoke of midnight on 22 August 2008 (Friday night morning, tomorrow night).

For all Mumbaikars, the following store will be all set with the red carpet for the launch:

Infinity Mall
New Link Road,
Andheri West,
Mumbai - 400053

Here’s a copy of the email that was sent out:

The moment you have been waiting for is here. The new iPhone 3G premieres August 22, 2008. iPhone 3G will be available in 2 exciting options:

1. 8 GB (Black) for Rs 31000
2. 16GB (White & Black) for Rs 36100

To celebrate the launch of the iPhone 3G in India, we will be opening three of our Airtel stores, one each in Delhi, Mumbai and Bangalore at the stroke of midnight 12.00am (Friday Morning) on August 22nd.

Join us early on the red carpet as we camp out throughout the evening.
We are expecting some long queues, so plan your day and reach the location as soon as possible. Remember, our stock is limited and will be available only on first cum first basis.

So, gear up to witness the biggest launch event on August 22, 2008 and be a part of history at

Infinity Mall
New Link Road
Andheri West,
Mumbai - 400053

Ps: Can’t make it for the midnight launch!

In case you can’t make it you can still get your iPhone on priority. Just visit one of the select Airtel stores & confirm your booking by paying Rs 5000 on August 20 or 21.You’ll get an appointment to collect your iPhone after paying the balance amount. For list of the select Airtel stores log on towww.airtel.in/iphone3g.

To Get ready for iPhone 3G launch, click here

As you may have noticed, there is good news for those who wish to pre-book the iPhone. Unlike Vodafone, which is currently accepting bookings in the tune of Rs. 10,000, the folks at Bharti Airtel—the gentle souls that they are—have decided to take pre-orders for Rs. 5,000 instead.

We’re not sure what kind of queues Airtel expects to see but rest assured that one of our correspondents will be present at the venue and reporting all the exciting news back to us, which we’ll be relaying forward to all you lovely people in readerland. Two days to go…

For those of you who were waiting for Airtel’s prices for the iPhone, hoping that the Indian company would be more sympathetic towards the scores of wannabe iPhone users out there, you’ll be disappointed to know that they’re exactly the same as Vodafone’s.

Those of you who’ve visited the updated iPhone section of Airtel’s website today will be forgiven for thinking that the company hasn’t revealed the prices yet. Only if you click on the “Get ready for iPhone 3G” link and then on the “Expand All” button on the subsequent page will you be treated to the price of the iPhone, along with several other details about its Indian launch.

As expected, Airtel will carry all three models of the iPhone 3G—the 8GB, 16GB black, and 16GB white. The lower capacity version will cost Rs. 31,000 while the higher capacity models retail for Rs. 36,100.

Unlike Vodafone, Airtel offers no option to pay a certain sum in advance to pre-order your iPhone, which means that you’ll probably have to queue up in front of an Airtel Store on this coming Friday in order to be able to lay your hands on the device. iPhones will strictly be available on a first come, first served basis. We advise you to grab a sleeping bag and line up right now; you might find yourself behind a few people even at this moment. (Naah, just kidding!)

Apart from the prices of the device itself, Airtel has also revealed that phones purchased from them will be locked to Airtel’s network but, as is the case with Vodafone, will not require you to commit for a multi-year contract. You can, in fact, use any activated Airtel SIM card with the device, including the one you may be using currently.

They haven’t announced any iPhone specific voice or data plans yet but, given that the launch day is almost upon us, we expect them to loosen their lips pretty soon. As you’d expect, you’ll know about them from us as soon as they’re officially revealed.

Vodafone yesterday confirmed our earlier report that the iPhone 3G will be priced at Rs. 31,000 and Rs. 36,100 (we reported Rs. 37,000) for the 8GB and the 16GB models respectively, in a press release sent out via email and on their newly updated iPhone page. Airtel, on the other hand, has been mum about the matter.

Vodafone warns that there will be limited stocks in the beginning so if you want your iPhone, you have to pay a Rs. 10,000 down payment to confirm your booking. (The Goa Apple store confirms the same.) Doing so will rid you of any queues or rush and you can be assured to walk out with an iPhone in hand on a date appointed to you by the company. [Ed note: Having witnessed the borderline hysterical interest in the device in countries where it has already been launched, we have no reservations about that claim.]

They also advise that already having a Vodafone connection will speed up the process of activating the iPhone. [Ed note: Having said that, I would like to add that they *request* you to opt for a Vodafone connection while purchasing the phone if you aren’t an existing customer. They make no mention of signing a contract or it being obligatory to apply for a connection if you don’t already have one. Furthermore, they specifically stated that prepaid customers would be able to retain their current services, though that information has now been pulled. All of this strongly indicates that the phone will be contract free; exactly what that entails, though, remains a cloudy factor.]

So now that the cat’s finally and officially out of the bag, making it UltraOfficialNews™, what do you have to say about it? Still interested in the iPhone? More interested in it than you were before? If you have any more questions about the iPhone 3G in India, feel free to flood our comments thread—that’s what it’s been put in place for.

The 8GB iPhone’s price has been officially confirmed at Rs. 31,000 by the Imagine Store here in Goa, India. The 16GB version will cost you Rs. 37,000. The prices are final and bookings are now open, but they warn that there will be very limited stocks. This store will sell it only with Vodafone, but it is highly unlikely that the other telecom that brings the iPhone to India, Airtel, would have a different price.

So this finally answers the one question I’ve heard about seven thousand times in the past few weeks, “how much will the iPhone cost?” At the WWDC 2008 (which, for you non-Apple folk, stands for Worldwide Developers’ Conference), Apple CEO Steve Jobs announced that the price for the iPhone 3G across all countries would be either around $199 or less than that. This sent ripples across the globe and within minutes half the world was planning on buying one for themselves. However, the iPhone comes with a carrier lock-in for a period of at least two years and a minimum rental plan that puts its total cost of ownership well over $1500, at least in the US. In the UK and other places, carriers were even giving the phone free with their even more costly rental plans.

When the iPhone 3G’s India launch with Vodafone and Airtel was confirmed for August 22nd, it fueled the ongoing speculation regarding its price. A lot of people actually believed that the phone would only cost them the paltry sum of eight thousand rupees or somewhere close to it, not realising that this would have effectively pitted the minimum monthly plan at somewhere around Rs. 2,000 per month, which is unheard of in India. Others had pleasant dreams that it would retail for Rs. 15,000 - Rs. 20,000, with a rental plan more in keeping with Indian standards.

However, it turns out that the latest rumours from Tech2.com were true and that it is in fact going to cost Rs. 31,000 (at least that’s going to be the case with Vodafone). But, and this is a big “but”, there is going to be no multi-year contract for you to sign. Basically, it’s going to be the same as the contract free iPhone AT&T plans to sell for $599 and $699 in the U.S.A.. Other details regarding the rental plans (though, apparently, you’ll be able to use any standard plan you choose to with the iPhone), the exact details of how a contract free iPhone will work and other related stuff are not yet known. As soon as we lay our hands on those, you will be the first to know.

So, now that the cat’s out of the bag, has your view of the iPhone changed? Are you still going to buy the iPhone or have those wonderful iPhone dreams been mercilessly crushed and grounded to pieces in your heart? Or are you actually glad that the iPhone is now seemingly out of reach of a lot of people, effectively meaning that you won’t have the most common phone in the world when you step out of the house with your brand new iPhone?

A Rs. 3 text message or filling out this form is all that you need to book an iPhone in India—now! Vodafone has started taking pre-orders for the iPhone 3G which is supposed to be launched in India “soon”. There’s no word on how much lighter your wallet will be post the purchase, nor is there any definite launch date yet.

As expected, there’s a carefully worded disclaimer in place on the Vodafone website declaring that the phone is “currently compatible only with 2G networks” and that “some of the features may (read will) not work in India”. 3G is not yet in place in India and it won’t be coming anytime soon. Similarly, we don’t have an iTunes Store, so there’s a possibility that the App Store may not be available to us Indians at the time of launch. (Ed note: Steve Jobs did say, however, that more than sixty countries would be blessed with the App Store, so there’s definitely hope for the second most populous country in the world.)

This is, of course, good news for people waiting for the iPhone. If my prophesying skills are up to scratch, I say we’ll see it appear on Indian shores before the festival of Deepaawali comes along. As you may know, Airtel is also launching the iPhone in India, so we expect pray and hope to see tariffs driven down due to competition.

The question is: Are you going to book now and bet the farm on Vodafone or do you intend to wait and watch all the details emerge? We definitely vouch for the latter but, if the iPhone mania we witnessed in the United States when the device was initially launched was any indication, not many of you will be paying heed to our sage advice. Heck, three members of the Smoking Apples team already are proud owners of jailbroken first generation iPhones (not including yours truly though)—so much for being cautious and sensible!