Every time a new iPhone launches in the US, my messenger, cell phone, twitter all start to buzz with inquiries by local Apple fans here in India. All of them have the same query – Can you ask your brother (he is based in NJ, US) to send an iPhone for me? I heard it costs Rs 10000 there ($199). And I go crazy explaining to them that, in US the iPhone 3G and the 3GS (and now the 4G – iPhone 4) are sold under a2 year contract + a subsidized rate plan, where in the phone is handed over to the buyer only after he purchases a AT&T connection for 2 years.
The iPhone 2G (1st Generation) was widely imported in India for $399 (Rs 16000 then approx) and unlocked. While the iPhone 2G was locked by Apple, the rates were not subsidized to the magical $199 figure by Apple. One could just walk into an Apple Store in the US and walkout with a locked iPhone 2G without having an AT&T contract. Things changed a lot with the iPhone 3G …
The Apple iPhone launch is big news for local news channels in India aswell. And Apple should actually blame them for disappointed iPhone Fans in India, who complain of high prices. When the news channels proudly announce Rs 8000 – Rs 10000 pricing, who will be happy with the Rs 30k price that Vodafone and Airtel sell the iPhone for? This is fueled by a general perception that electronic goods are cheaper outside India.
Contract with telecom operators with fixed monthly rent is something we are yet to see in India. In US, to get an iPhone from ATT you need to signup for a minimum monthly commitment plan. Apple is remunerated from your monthly bills for the same, to cover up the subsidized pricing of $199. In India while the iPhone is locked to Airtel and Vodafone, you can use your same rate plan and connection with any of these operators on the iPhone.
So here is the myth buster: iPhone is not over priced in India, its Not subsidized. And I fell that its cheaper this way, as the monthly AT&T commitment in US ensures that you pay almost $1000 extra yearly as mobile bills. Unsubsidized and contract free iPhone costs $599 in US aswell – this translates to approx Rs 30000. Very close to the iPhone pricing in India.
And if you were thinking if one can just fill up a ATT form in US, get an iPhone and then come back here in India and use the iPhone for $199 … well that doesn’t happen :). There are proper credit checks before you take an iPhone now, not any tom, dck and harry can pickup an iPhone without convincing Apple / ATT that he would be paying the monthly bills.
In my honest opinion, you should buy the iPhone in India – only officially from Vodafone or Airtel. The warranty services provided by Apple is amazing and is valuable (Update: In India you need to go to the service provider to get warranty – which is a Pain.. as @b50 informs me, But some warranty support in India is better buying a US version which lands up even in the grey market at almost the same rate). And BSNL, MTNL, LOOP, Aircel etc subscribers can always unlock the 3GS and use it with their existing SIM.
Updated to mention the iPhone 4