The Apple has finally hit the Indian mobile market, but steep prices make it a forbidden fruit
The good news is that there is finally an alternative to the grey market for iPhones in India. Airtel and Vodafone launched the much-awaited new iPhone3G late last week amidst much fanfare. But the bad news, for most of us, is that owning the iPhone3G will still remain a dream. Priced at Rs 31,000 and Rs 36,100 for the 8 GB and 16 GB versions, respectively, this is certainly not a phone for light pockets.

Airtel’s Mobile Services president Sanjay Kapoor absolved himself of any responsibility saying, “Airtel is simply providing the iPhone experience to its customers. The prices have been fixed by Apple and there is no profit margin for us.” He explains that since India has no mechanism to bind the customer to a particular service provider, the product cannot be sold here as in the US—for an 8GB phone customers in the US pay $199 (Rs 8,358) upfront and another $99 (Rs 4,158) as annual contract with AT&T, the only service provider. Kapoor believes the product will cost the same in the West if it is sold unbundled.
Airtel admits the iPhone is not for the masses and will attract only high-end customers, what they describe as “funsters” and “the achievers segment”. This certainly seemed to be true of the crowd gathered at the launch to purchase the latest gadget.

Swati, the first customer of the iPhone in India, is a self-confessed tech-junky who just had to have the newest toy on the market, whatever the price. An MBA student she saved up for five months from her earnings as an intern with PepsiCo. “This isn’t just a phone it’s a laptop and an iPod and a phone, a three-in-one. I just had to have it.” Those like Chetna Taneja, among the first buyers in Delhi, have other reasons. “I was sick of my old Nokia that I’d been using for three years. I have used an iPhone in the US, but didn’t buy one because it would have been a hassle to get it unlocked. I managed to get the very first white one here.”

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