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You’ll soon be able to buy and use an iPhone in India, legally

ENS ECONOMIC BUREAU

Posted online: Wednesday, May 07, 2008 at 2348 hrs Print Email

Currently available only in the country’s grey market; Vodaphone has tied up with Apple to officially sell the smartphone in 10 nations including India

NEW DELHI, May 6: Apple’s iPhone will finally be available to Indian consumers through the legal route. Vodafone today announced that it has signed an agreement with Apple to sell the iPhone in ten countries including India. Australia, the Czech Republic, Egypt, Greece, Italy, Portugal, New Zealand, South Africa and Turkey are other countries where Vodafone will sell Apple’s smartphone. This means that only Vodafone subscribers will be able to use iPhones legally. Telecom subscribers of other operators will have to remain satisfied with phones available in the grey market.

iPhone was first launched by Apple about ten months ago in the US. The company has sold about 5.4 million iPhones around the world. Apple’s iPhone is a wafer thin device with a thickness of 11.6 mm. With a wide screen of 3.5 inches, it is highly consumer friendly. Unlike other smart phones it does not use a keypad. A user uses multiple taps and drags to navigate through a mobile version of Apple’s operating system.

The phone was a big hit even before its launch. Apple fans queued up for hours in front of stores to buy the iPhone. It met with success in every country where Apple launched it. In the first quarter of this year, Apple sole 1.7 million iPhones.

Apple’s strategy is that it enters a market by tying up with one of the largest telecom service providers. In any market, only a single service provider sells the iPhone. For example, in the US, AT&T is the largest telecom service provider. In Germany, Apple’s partner is T Mobile. In India, Vodafone is the second largest GSM mobile service provider. The grey market operators procure iPhones from markets where it is available and then break its code. In iPhones sell for about Rs 23,000 in the country. Sources said Vodafone may sell it in the range of Rs 28,000. In global markets, iPhones prices have fallen sharply. Recently, T Mobile slashed prices of entry-level iPhones from ¿300 to ¿99.

Apple users find it very convenient for mobile browsing. Last year, Google said it received more traffic from iPhones on Christmas than from any other mobile device in the US. iPhones account for only about 2 per cent of the smartphone market and less than 1 per cent of the overall mobile phone market in the US. That means that iPhone owners may be less in number but those who do possess the device use it for surfing Internet much more than those with competing handsets.

What is iPhone

Wafer thin and wide-screened, iPhone is a highly consumer-friendly smartphone by Apple. It uses multiple taps and drags to navigate the mobile version of

Apple's operating system. So far, 5 million iphones have been sold worldwide.

Price in the US market

In the US markets, AT&T locks in consumers with attractive deals starting at $400. In Germany, T Mobile prices kick in at $150.

Price in India

In the grey market at Rs 23,000. Vodaphone is expected to launch it in the Rs 28,000-30,000 price band.

Apple's strategy

Apple ties up with only one operator, generally the biggest, in a country. In the US, it is AT&T. In India, it has tied up with Vodafone.

How is it available in the grey market?

In India, grey market operators break its code. It can then be used in any network. However, in such cases, feature upgrades are not available.

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