IPhone’s Pricing Problem In India
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November 18th, 2008

IPhone’s Pricing Problem In India

Brian Caulfield, 11.18.08, 09:20 AM EST

Apple’s hot-selling gizmo is off to a slow start in India. Does this spell trouble for China?

Steve Jobs is having more fun in the handset market than a terrier loose in a jerky factory.

The Apple (nasdaq: AAPL - news - people ) chief executive’s hot-selling iPhone has gobbled up 17.3% of the fast-growing worldwide smart-phone market, up from just 3.6% during the year-ago period, according to tech tracker Canalys.

Apple’s experience in India, however, shows why the feeding frenzy may not last forever. The August launch of the iPhone in the South Asian country appears to have been a flop, even though India’s middle class is booming.

While Apple hasn’t released any figures for Indian sales of the iPhone, some peg sales at just 11,000 units, according to a report published last week by Indian business newspaper Mint. That slow start might not bode well for Apple as it tries to push into China.

Apple hasn’t said when it will put the iPhone on sale in mainland China. However, last month Apple Insider reported that the company advertised on its site for a quality assurance engineer in Beijing to “focus on international releases,” of the iPhone. The notice appears to have been removed. Apple did not immediately respond to requests for comment.

There Are 21 Responses So Far. »

  1. Comment by beld on 18 November 2008:

    Personally, iphone tho sleek will find very few buyers now. I don’t think we have seen such times in india before - at least magnitude wise. Walk into an ezone or any such shop - there is no interest in high end phones, lcd tvs, electronics etc. Car dealerships are empty. Housing projects have stopped. The indian consumer has shut his wallet. Its going to take six months for them to open it

  2. Comment by Aarohi on 18 November 2008:

    iPhone 8GB is priced around 34K, which is expensive with respect to its features. There are much better phones available in India in that price range.

    Beld bhai: surprised to hear that. CNBC reported a few days ago that the sales of white goods in 08 Diwali season exceeded the figures of 07 despite of a slowdown.

  3. Comment by neelu on 18 November 2008:

    I am a die-hard Apple person, but the iPhone scares me. It seems to me that whenever I am at the Apple store the longest lines are for people whose iPhones are giving them problems. I think I will wait 2 more years for the bugs to get ironed out.

  4. Comment by Qalandar on 18 November 2008:

    I switched to Apple from PC 10 days ago — and am loving it! I was seduced by the iMac’s sleek display, and from my experience in Philadelphia, where I worked side-by-side with a lot of people who had Macbooks, and their computers seemed to give them far less trouble than mine did (and all were PC-users who had made the switch 2-3 years ago, and none had any regrets)…

    I won’t be getting the iPhone for some time, but that’s probably because I always wait a long time to get on board with new technology…didn’t get an iPod until 2006…

  5. Comment by Kunal on 18 November 2008:

    iPhone rocks, period.

  6. Comment by neelu on 18 November 2008:

    Qalandar - all smart people use Macs ;-)

  7. Comment by rks on 18 November 2008:

    “all smart people use Macs ”

    :)

  8. Comment by neelu on 18 November 2008:

    Kuch shaq rks? That way smart people can use the time they would spend on trouble shooting computer problems, in quality time-wastage on NG.

  9. Comment by Aarohi on 18 November 2008:

    neelu: Do Macs help in getting smart or are people smart to begin with ;)

  10. Comment by neelu on 19 November 2008:

    You have to be smart to make the choice in the first place :-) The rest is done by the saved time spent on NG.

  11. Comment by beld on 19 November 2008:

    While on the economy, steel/iron ore proces shd be a leading indicator on where the economy is going. Prices have crashed but stabilized it seems. I believe in the mining industry - people can just shut down for 3 months until prices stabilize. Aar I not sure what cnbc was talking abt but I know for a fact that lcd’s, phones have all crashed. There is a huge inventory problem in india today - I hope this works to good deals this winter. Btw - while on phones - I am told that u can buy new phones on ebay.in at 30-40% discount. Btw - can anyone suggest a good 5-10k range phone?

  12. Comment by Arun on 19 November 2008:

    can anyone suggest a good 5-10k range phone?

    What are your requirements, Beld?

  13. Comment by beld on 19 November 2008:

    Nothing special arun. Phone/internet browsing and possibly music but not necessary

  14. Comment by beld on 19 November 2008:

    Is there a cnet like site for phones/other products in india? Btw dollar closed above 50 today. Rohit - time to return money to all ng indiaites and collect more from the dollarians ;-)

  15. Comment by jeegs on 19 November 2008:

    Beld Gsmarena.com is best for Gsm modile phones.

  16. Comment by jeegs on 19 November 2008:

    Beld try Motorola E6 . 2 MP camera , touchscreen , linux and 2 gb expandable memory .

  17. Comment by beld on 19 November 2008:

    Thx jeegs. Will check it out. I have to choose between abhishek, aamir or srk…phew tough choice!

  18. Comment by Arun on 19 November 2008:

    Univercell

    If you are looking for a good sturdy phone, 6233 would be a good bet. Check that website for more!

  19. Comment by Arun on 19 November 2008:

    I have to choose between abhishek, aamir or srk

    Now…that’s a good one ;-)

  20. Comment by jeegs on 19 November 2008:

    Beld never buy Samsung phones . i have got bad experiences with them . Nokia phones are anyday better comapred to others but r more costly too . sometimes in same price range u get Moto or Samsung phones with much more features .

  21. Comment by Som on 19 November 2008:

    True Jeegs,I have bad experience with a Samsung Phone as well.

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