Will iPhone's CDMA launch in India make a difference in its prices?

Recently Apple announced their plans to launch iPhone in CDMA section which is roughly around 20 % of around 650 million (65 corer) . So they are targeting around 12 to 13 million customer base for the iPhone.


Apple is in talks with Reliance and Tata the two big players in this segment. But having said all this, what will the common consumer benefit from this launch? iPhone is already present in India with GSM network with Airtel, Vodafone etc.

iPhone Business model is somewhat different than regular cell phone manufacturing companies like Nokia, SamSung etc. As per their business model they tie up with giant telephone service providers and then force the consumer to get into a long term contract with the mobile phone company. This is typical strategy Reliance had introduced many years back when they launched their WLL service first in India.

There are numerous expensive plans which a customer has to choose from to actually use them. Not just that, the initial cost of iPhone is already very high i.e. around 30,000 to 35,000 i.e. around $ 650 to $ 800 plus you are forced to be bound to a service provider as the iPhone handsets are locked with that service provider.

Generally in the US, the model is a bit different where in initial cost for customer is around $ 199 to $ 299 but they have to get into monthly plans of $40 to $ 60 i.e. they pay $ 1450 to $ 2100 for 3 years plus the initial cost.

Apple not only makes huge money initially but also gets some money when you continue your usage, this way both Apple and the service provider make huge amount of money and it is Win Win situation for both and hence Apple is very famous with Mobile service providers and everyone wants to be associated with them somehow.

But if it’s a win win thing for Apple and service providers then is it also same for consumers? Actually not! The customer makes a huge loss at least in India as he has to pay huge starting fees plus continue with the same service provider for minimum 2 to 3 years. It’s like a home loan which we get even after paying complete price of the house.

Will there be any price difference in iPhone in CDMA, it is very unlikely to happen as Apple never compromises on Price and unless the service providers bare the cost and innovate a little in the interest of the customers customers will hardly get anything. If you take a 3 year plan chances are that, not only will you pay huge price for the iPhone but also more money for the same service with a different phone.

iPhone is a great phone no doubt but, can every person in India relate with it? In a country where 3G service is just started is it really wise to go for an iPhone. It is better to use iPhone if you have 3g enabled and you are going to use all the services which iPhone can offer you else wait for some time until 3G services start to come at affordable prices in India.