24 Aug
Why You Should Buy iPhone for Rs.31,000 ($720)
Posted on 2008 under AppStore, Free Apps, Paid Apps, iPhone Duniya, iTunes |
(4 votes, average: 4.75 out of 5)
Loading ...Ok, this might sound a bit weird. But I am going to try to explain why one should be buy iPhone 3G for Rs.31,000 ($720) if he is from India. And why he should no look for reasons to buy iPhone 3G for Rs.8,500 ($199) in the US and bring it to India hoping that it would be unlocked and jailbroken easily. Here is my reasoning..
Before I put it all up, I would like to reiterate that I’m not new to this iPhone world. I had bought the 1st gen iPhone way back in Nov 2007 and have been using the unlocked version right from then. I sold it in June 2008 for Rs.16,000 ($400) expecting that iPhone 3G might be priced less than $200 and I thought, I would then buy it in the US and bring it back to India. Then I bought another one from eBay on 11th July when I realized that iPhone 3G is subsidized only to AT&T customers and its officially going to come to India very soon. And just 3 days back I bought iPhone 3G locked to Airtel India and was amongst the first buy iPhone 3G in Bangalore, India :), read more. I have been using this awesome awesome 3G version from past 3 days now and I am totally convinced that this iPhone 3G should be bought in India and through Airtel/Vodafone only. And why 31k is justified fully. Let me begin:
- iPhone 3G costs Rs.31,000 ($720) in India. The price is almost the same in any other country where iPhone has been released and is not subsidized by a local Service Provider.
- iPhone 3G is the cheapest in the US @ Rs.8,500 ($199). This is because of one big reason. AT&T has the exclusive right to sell iPhone 3G in the US and one has to commit for a 2 year contract before purchasing iPhone in the US. Now what does this mean, let me explain:
- On an average mobile phone users have to commit for 1 to 2 year contract with a service provider to get mobile instruments at a subsidized rate. This helps the service provider and the instrument maker to recover the cost in splits over a longer time duration.
- On an average, a mobile user will have to pay $40-$60 per month for 2 years minimum, if he buys iPhone 3G from AT&T. Here is the rate plan on AT&T website, read AT&T plans (type 33311 as zip code if asked).
So if we take an average of $40 per month which Rs.1720, it comes to Rs.20640 per year. Here you are paying around Rs.8,500($199) + Rs.20,640($480) = Rs.29,197($679) at the end of first year. And this is not the end of it, you will have to keep paying till you want to use iPhone 3G.
- You must be thinking, why should I commit to pay AT&T for 2 years. I can very well ask my cousin/friend living in the US to buy iPhone @ Rs.8,500($199) and break the AT&T contract and send the iPhone to India. Here is the catch:
- iPhone 3G with 2 yr contract - $199 ($299 for 16GB)
+ $36 - Activation
+ $175 - Early Termination Fee
+ $70 - One month of service - So… 8GB iPhone Canceled: $480
16GB iPhone Canceled: $580
This excludes sales tax on iPhone. So add another $20-$35 more.
Therefore you end up pay ~$520 for 8GIG iPhone 3G which comes to Rs.22,360.
- iPhone 3G with 2 yr contract - $199 ($299 for 16GB)
- There is still a different of around Rs.9,000 between contract free iPhone 3G from US and Rs. 31,000 which is the cost of official iPhone 3G in India. Lets now get down to amazing benefits you would be entitled to if you purchase iPhone 3G from Airtel in India. I am not sure about Vodafone features in India, since I am using Airtel services on my iPhone 3G.
- Airtel is offering Free EDGE data of 500MB every month for 12 months if one purchase iPhone 3G. This is awesome. I am not sure too sure if this offer will last long. This virtually means that you will be saving Rs.500($12) every month for one year. And I have been using this service on my iPhone 3G, I must say that the speed is pretty good. I can download all my mails and have kept “Fetch Mail Automatically” on. I have been using GPS on Maps, while I am commuting, its just amazing the way GPS continuously keeps showing my actual location in Maps. Google Maps is amazing, I can see the GPS BLUE DOT moving on those roads and streets of Bangalore without any hitch. This is my most favourite app. Since GPS wasn’t there in the 1st gen iPhone, I was bowled over when saw GPS functioning in Bangalore streets and roads.
And the best thing is I can surf the web, use GPS Maps and check emails on my iPhone 3G without pay a penny more to Airtel, cos I have 500MB free for 1 long year. - The next big thing I love about Airtel’s iPhone 3G is access to “AppStore” in India. I have activated my account on iTunes by authorizing my credit card so that I get automatically charged by Apple when I download PAID APPS.
I have been using APPSTORE from past 3 days and let me tell you, this app is going to be the next iTunes for songs. iTunes for songs revolutionized the complete music industry in the US. AppStore is going to revolutionize the way applications and softwares are bought and sold in the whole world in coming years. There is no issue with piracy at all and one can buy free apps as well. This is marvelous.- Here is my list of PAID APPS that I have downloaded:
1. VisuaRadio - Amazing amazing internet radio streaming over 4000 radio stations. I bought it for $0.99. :)) awesome.
2. Super Monkey Ball - This is the most popular iPhone game available on AppStore. This game is offered by SEGA, the popular gaming company. My son is already hooked on to this game, and spends quite sometime. I too spend most of my free time playing this game. Bought it for $9.99. A must have for all gaming freaks. - I have downloaded quite a few FREE APPS in last 3 days:
1. reQall - Voice Notes recorder app with ToDo voice recording support.
2. Scribble - Scribbling pad.
3. midomi - Voice recognizing music search app. Just sing or take iPhone close to a music player, and it will automatically pick up every bit of information about that song. Like the music album name, artists, youtube related videos etc. It works with hindi songs as well. I tried it with “Pappu can’t dance sala” and this amazing app picked up Jaane Tu.. artists, sings, music composer and youtube videos related to Jaane Tu.. as well. AMAZING…
4. Along with these, I have been using Twitterific, Tris(Tetris on iPhone), Few racing games like, Audi A4, CannonGame, Solitaire, Palringo(iPhone Chat app), and Wordpress for iPhone.
- Here is my list of PAID APPS that I have downloaded:
- Airtel is offering Free EDGE data of 500MB every month for 12 months if one purchase iPhone 3G. This is awesome. I am not sure too sure if this offer will last long. This virtually means that you will be saving Rs.500($12) every month for one year. And I have been using this service on my iPhone 3G, I must say that the speed is pretty good. I can download all my mails and have kept “Fetch Mail Automatically” on. I have been using GPS on Maps, while I am commuting, its just amazing the way GPS continuously keeps showing my actual location in Maps. Google Maps is amazing, I can see the GPS BLUE DOT moving on those roads and streets of Bangalore without any hitch. This is my most favourite app. Since GPS wasn’t there in the 1st gen iPhone, I was bowled over when saw GPS functioning in Bangalore streets and roads.
I am sure the difference of Rs.9,000 can be surely justified with these awesome AppStore support and 500MB free data download for 12months from Airtel. BTW - if you think you can anyways buy iPhone 3G from the US and access AppStore and download apps using Airtel SIM, think again, Engadget has covered Airtel’s claim that no hacker in the world can crack “OPERATOR-SPECIFIC IPHONE APPLICATIONS” which Airtel has jointly built with Apple. For more on this, read this article - Airtel claims no hacker in the world can crack iPhone 3G.
I hope this post helps you in your decision making process.
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41 Comments
I would have bought it even if there were no reasons. By the way, you forgot the customs duty of bringing the phone to India. I think it’s 25%!
you are right sayam. But few people bring iPhone without any customs by pushing the iPhone in their laptop bag or in shirt/pant pockets:) but yes customs had to be added as well.
Lol. Its your New love. I appreciate Give us a honest review after a few months
yes
you are right. Let me use this for some time and then get back with my experiences.
What do u think of it when compared to 1st gen iphone? worth spending 31k?
If you have the 1st gen, I wouldn’t recommend spending 31k at all. 3G version is 85-90% same. But if you are new this iPhone world. Go ahead and buy this gadget.
Hi
1 year unlimited GPRS/EDGE costs just 1500 in Kerala.
Appstore support is there in ANY iphone with firmware 2. I am still on a first gen iphone and have a number of apps like mobile chat, SMB, scrabble, Sudoku, GTS Racing etc.
So, a Freebie costing just 1500 doesnt justify the price difference of Rs 9000.
Here is how I feel the price justifible
But consider the iphone price of $520. The customs duty is 34% for such ipods and similar goods(check ipods price in India. Its more than US by this amount). So, with customs duty, the price comes around $700 which is more than the vodafone price in India.
Secondly. Warrenty. I have seen many incidents where touch screen became non responsive after a fall from a small heights like 1 or 2 feet. Unless you are ultra careful, its easy to have problems with the phone. There is no point loosing warrenty to save a few thousand when u r spending such a big amount.
But the main problem with me taking an iphone here is the carrier lock. I am on iphone 1st gen since Sept 1st week 2007. I am having a Vodafone Bangalore connection as well as an Airtel kerala connection as I am frequently in both places. With my current unlocked iphone, everything works flawlessly. My kerala Airtel GPRS works fine in Bangalore as there is no roaming charge for data usage.
With a price of over 30k, I wish the iphones were unlocked ones. The more sales they have, the better is it for Airtel and Vodafone. Locking it is trouble for the user. Since the offers are almost same in Vodafone and airtel, the unlocking wont have any affect on them other than increasing sales.
hey jax, your reasoning is just great. Thanks for sharing this on this blog. I am sure users will benefit immensely.
I just called Airtel bangalore, they confirmed there is no unlimited plan for 1500rs for a yr. I used to pay Rs.140 per week x 4 per month for unlimited plan from Airtel on my iPhone 1st 1.1.4 one. Could you please re check with your kerala Airtel cus-support please.
Also I am not sure how you are able to access Internet while on 2.0.1. Since that firmware doesn’t provide APN address entry while setting Airtel’s ‘airtelfun.com’. It’s not there in 2.0.1 firmware since it’s 3G version. In this scenario one has to ask Airtel to activate GPRS and then teather the firmware.
The rates vary from place to place. Mobile office costs much less here in kerala.That is why I use this while in Bangalore(Free roaming for data usage). It is Rs.249 if paid monthly, Rs 600 if paid quarterly, Rs 900 if paid half yearly and Rs 1500 if paid yearly when using with post paid. Its listed under service in post paid section on airtel site(http://airtel.in/wps/wcm/connect/Airtel.in/airtel.in/home/foryou/mobile/postpaid/services/). Just select region as Kerala. The monthly price is listed there. For prepaid, GPRS vouchors are available for 250 monthly and Rs. 2500 yearly. Dont think the Vouchers from Kerala works outside kerala.
In the new iPhone 2.x, however, Apple gave service providers the ability to disable this setting so you’ll automatically connect to the Internet through their network and incur their data access fees. The setting will be configured automatically or the setting will be vissible depending on how your network operator decided. To force the phone to have the settings visible, just do the following plist hack
SSH to the iPhone, go to /var/mobile/Library/Carrier.Bundle Bundles/ and edit the carrier.plist
Go to the section right below TTY and add in these two lines:
AllowEDGEEditing
Save and reboot your iPhone. Once rebooted, when you go back into Settings -> General -> Network you’ll see a new Network Settings option at the top.
i am using the automatic config my Airtel and it works fine.
You can also create custom carrier bundele using iphone config tool
http://www.apple.com/support/downloads/iphoneconfigurationutility10formacosx.html
just double click the bundle and itunes will add it to phone when u sync next time.
the braces are not posting correctly in comments. So, the plist editing is not as posted. u need to set AllowEDGEEditing to true in plist
APN can also be configured by visiting the following site(using wifi if edge is not there)
http://unlockit.co.nz/
This works for 2.x 2G iphones as well as 3G iphones.
Thanks for sharing this link JAX. I guess users who want to buy unlocable iPhone 3G, this info would definitely be helpful. I was infact trying to manually configure 3G connectivity and couldnt find APN tab. Then I found out that APN can be fed in with a hack.
http://unlockit.co.nz/ is the easiest way to set APN. Why not have it as a post here so that it will be easier for people to find?
yes its true and one more imporatant thing is that if we buy the iphone here in india legally we get the warranty which otherwise we wont be getting if we get unlocked us ones.
Yes, I missed this one. Thanks Vaibhav. Warrenty for one year comes bundled with this iPhone and it can be extented to another 2 years.
Tech2 has covered the EMI plans that might happen with Vodafone. There is a mention of why people buying iPhone legally would benefit immensely from Airtel in the long run - “We are aware of the hacking software that are available and are used to unlock the iPhone, but customers who will stay with Airtel will be able to enjoy iPhone’s full benefits including the data plans,” Sanjay Kapoor, Airtel’s president (mobility) said.
Read complete coverage here - http://www.tech2.com/india/news/mobile-phones/vodafone-looking-at-installment-scheme-to-sell-iphone/45581/0
iPhone has a 3G hardware glitch .. which is a major one and apple are getting sued for it in US .. iPhone has 10 3G antennas and they figured it out way too late that these causes internal interferences
and since india does not have 3G yet, iPhones with this hardware glitch gets delivered to the indian dumping ground i.e.into your indian pocket
so dont buy it
Great article Dev ! This will really help people in deciding :).
There were some allegations on the iPhone 3G roaming around in a chain mail. They are clarified here - http://woikr.com/apple/woikr-clarifies-allegations-on-the-iphone-3g-in-india-chain-mail/
How outrageous it is to sell Iphone 3G in India, without having 3G network!!?? Is Indian cutomer is so stupid? Is Airtel, Vod, Apple making fool of Indian customers? Shame on irrational capitalism. And they say the 3G chip is defective. How can Indian test 3G cell phone without having 3G!!. It seems the 3G will be launched in India next year. By that time Apple waranty period will be over. By the time India cutomer realized that his 3G phone is not 3G. I think Indian customers are stupid in this case!!!!
I just wasted 10 minutes reading crap.
None of the logic applies.
Apple are taking the indian public for a ride. And the only reason people are buying the iphone is for status symbol period.
Who pays duty on phones please dude grow a brain cell.
215$ for a 3G from the US as many as you want.
The funny thing the author knows all this yet makes such an absurd post.
Even taking his logic its still costlier by 8K to buy in India.
For 8K you can get a nokia with full functioning GPS not the criple gps from apple.
Please read
Cost of owning iPhone.
Assumptions
Phone:8GB iphone
Term :2 years
Plans:
US - $39.99(450 min Talk plan) + $30.00 ( data plan)
India - New india roaming with 450 min usage: INR 1000.00 + iphone data plan (500kb free/ .30/50kb)
US
iphone $199.00
talk time+data for 24months $1680.00
onetime activation $35.00
Total $1914.00
India
iphone INR 31,000.00
talk time INR 24,000.00
Data for 12months based on .3/50kb ie ((500mbX1024KB)/50)x0.3)x12
INR 36,864.00
TOTAL INR 91,864.00 or USD 2136.00
Wow factor INR priceless :-))
Conclusion:
Customer in India pays $200.00 more than US customer over the period of 2 years. Plus Indian customer will lack 3G,unlimited data plan and more localized application. These can attributed to lack of data usage and low volume of customers. Cost may come down in india if more people use data plans this again takes couple of years.
Thanks for this analysis Mahesh. I am sure there will few people who would always reasons to curse Steve Jobs and Apple.
Yes, you cant curse Apple and the price. Price for iPhone is justified and don’t expect apple to reduce price. its carriers. Interestingly in US it only AT&T carries iPhone, where as in India two carriers are carrying. At first it seems they will compete to give customer good price. Well that’s not the case here. Airtel and Vodafone have formed cartel. TRAI should make tougher laws to curb the cartel in future.
I forgot to add tax element to US. With Tax Indian iphone owner will pay as much as US counterpart.
UPDATE:
Here is final COO in US
iphone $199.00
talk time+data for 24months $1680.00
add text messageing$5/month $120.00
onetime activation $35.00
Tax and other charge $240.00
Total $2274.00
American pays more than what Indian pays. SO are you ready for iPhone?
Cool calculation, Mahesh…
thanks for this info.
.. Continuing Cost of owning iphone
Low cost of Talk plan in India is balanced by high cost of data plan , double that of US. And the Talk plan in US is very expensive comapared to India. This is the reason US carriers can afford to subsidize the phone. With more data usage in India the cost will come down to US level. 0.3/50KB is very expensive. As the phones/internet evolve there will be more data usage. In couple of years the phones will be converged to hand held gaming consoles with multiplayer games.
I read your post and am not totaly satisfied..I own the 1st gen iphone and the only difference is lack of GPS and 3g on this phone because at the moment i just updated it to the latest 2.0.2 firmware…so from an OS perspective its the same thing..3g does not bother me because India does not have 3g networks and saying that it comes by the year end is not really certain. GPS again no support for India..31000 is not justified when i bought my phone from the U.K. for 13500 when the features i’m going to use are the same..
Nice Post dude…
Guys what’s the big deal if India doesn’t have 3G. You know that its going to be only software updates to the iPhone except for the camera though ( I don’t use a mobile camera for anything at all.
But you will have the best smart phone till date in your hands when you have the 3G network in India ( its not going to be far). And for your kind info, people are trying to smuggle out the Indian 3G pieces to US as they find its cheaper here.
And above all its a Apple iPhone…You will know the quality and the technology only when you have used an Apple.
Thanks Sylvian… 3G will bring wifi like speed to the internet surfing experience. this is news, people are buying iPhone 3G from India and taking it to US, woww.. This is news to me. Thanks for this info anyways.. I too believe in this out of the world Apple experience Sylvian. I have been a windows user all my life. And from the day I got iPhone, my whole computing experience has turned 180 degree. I had been using HP iPaq which uses windows CE for mobile for over 3years. And man, what a mind boggling difference it is to use iPhone when compared to windows CE. Apple commands a 80-100% premium for this very difference. And I feel its justified.
I am dont agree with iPhone smuggled out of India to US, as it costs $400 & $500 without contract, less than Indian version. It is quite possible that they are smuggeld out to Gulf countries / other countries where it is not scheduled to release.
As I mentioned in this blog, if you have 1st gen, its not advisable to go for 31k.
It should again be thought the astronomical cost of 3G when it launches…i remember that EDGE was for Rs. 699 a month for an unlimited package..and my current unlimited EDGE package is at Rs. 250 a month and I’m a heavy user with nearly 2-3 hours on EDGE with push email and RSS…3G initially will be expensive..and by the time its affordable there will be a 3rd gen iPhone who knows…
Some Good News friends - Rediff has just posted this article on iPhone 3G price -
“iPhone price may fall 15%”
Apple may drop iPhone’s price by at least Rs 5,000, says Anshul Gupta, principal analyst with Gartner. “At current prices, we expect iPhone to sell primarily among those who cannot wait for Apple or the operators to cut prices,” he said. “It will be a volumes game then for the operators to clear out their stocks before Apple announces a new version of iPhone.”
Full coverage - http://in.rediff.com/money/2008/sep/01iphone.htm
Dev,
Thanks for info,
Any news for airtel or vodafone about this ?
Regards,
SSS
Hey…Did you face any trouble in getting GPRS activated on your iPhone..
I bought iPhone 3G from a airtel store yesterday. I was able to browse the web for sometime but not anymore…
Airtel’s customer support sucks bigtime… nobody has a clue and I have wasted last 10 hours trying to make it work…
Hey rohan.. I did face this problem too and then I went to the airtel store and asked them to start my GPRS, within 20mins my EDGE started working. You can also call 121 and ask them activate GPRS manually. It would get activated in 10-15mins flat.
Try this Rohan and let me know if this works.
I’ve calling 121 and 12118 for last two days but they don’t have a clue… The airtel store which sold me the handset is no longer interested because he has made his money..
I was told that someone from airtel will call me to fix that…that never happened…
Sorry to hear that Rohan. Try calling 121 and ask them to activate “Airtel Live”. They would then activate airtel live and with that the GPRS will be activated as well. This shouldnt cost you any extra money either. Since there is 500MB free per month for 12months. Let me know if this works
Agree with you on Airtel customer care. I moved to Airtel from Vodafone because of the data package that Airtel offered. But the guys at the relationship center are very good and efficient. Even I had problems activating the iPhone data plan through customer care. Then I went to the relationship center and a person by name Bhaskar got it activated in just about 5mins. After that not much of a problem. But customer care is real bad with Airtel.