Yeah, I think I remember reading an article about that here a while back when the iPhone 4S was being released in China.
Even though, it's "free", I can't really say that it's cheap though, as the customer still ends up paying quite a bit to use their phone.
A 32-gigabyte iPhone 4S on a three-year contract would cost around $45 per month, while a 16-gigabyte on a two-year contract would cost approximately $60, reports Bloomberg.
Still better then the USA where the cheapest is $200 and data plans from the two biggest carriers by far offer lousy data plans unless you are grandfathered to unlimited data.
I'll quote one word from your original post, Apple ][ -- "shitload."
I don't have a problem with facts and reality, just with barbaric xenophobia. Fake barbaric xenophobia for pay is even worse.
It's a common term. Your politically correct mind is causing you to invent imaginary outrage where there is none.
If Apple sells 50 million iPads, then they've sold a shitload of iPads. If somebody is rich, then they have a shitload of money. If there's a lot of people somewhere, then that's a shitload of people. Your highly sensitive PC mind is not my problem.
And what's with the pay crap? Are you that stupid that you really think that I am a paid poster here?
Still better then the USA where the cheapest is $200 and data plans from the two biggest carriers by far offer lousy data plans unless you are grandfathered to unlimited data.
I agree with you that cell phone plans in the US absolutely suck and are highly overpriced. As for me, I try to use WIFI as often as I can.
The Indian market potential is five years away for Apple. Establish a beachhead, for sure, but don't expect too much in the next couple of years from India. Very PC-centric, and 3G is not even really rolled out, so wireless data has a long ways to go. Wifi penetration is low too.
China is where Apple is going gangbusters in the next five.
I expect Apple Stores to be successful in India because Apple has shown us they grow their B&M stores cautiously, but I agree with your assessment. I'd even say 5 years is optimistic for India. Apple may very well see a huge surge with doubling YoY but it'll still be small potatoes* compared to the other large countries.
* Couldn't think of an equivalent Indian phrasing for idiom.
But even if this ads only 1-2% of the indian people to buying anything from Apple, this will be huge.
THIS.
I don't mean to be rude, but my fellow Americans can be pretty ignorant when it comes to the rest of the world.
Even if only 1% of Indian people were to buy from apple, that's a market of twelve million, which is larger than the population of most of the states (and many of the countries) Apple already has stores in. 2% pushes that figure up to 24 million.
Also, to assume only 1% will buy from Apple is foolish. Apple is going to be huge in India.
I don't think that Apple should concentrate too much on India. The average salary there is extremely low. Isn't Android doing ok in India, because the devices are dirt cheap? There might be a shitload of people in India, but only a few of them will be able to buy Apple's devices.
India is where they also made and released a $35 Android tablet. I'm sure that's a technological marvel and a real pleasure to use.
Utter rubbish. India has a massive middle-class that is equivalent to the US in population. Millions of people in India already buy Apple products.
It's not very classy to mock a tablet aimed at education.
Phones like S2 are selling here for $650..so i dont think people not ready to shell money for things..
but the important factor is Not many people here in india shown interest in Smart phone even a year back...i am working in a MNC with atleast 250 Mech Engineers i can see barely 4/5 iPhone 3GS/4S and Few Galaxy S2...rest of us are still with Nokia..
major issue is a Ananth wrote Penetration of 3G..without a faster Ineternet connection whats the use of Smartphone?
Where do you live? I've been through Delhi, Mumbai, Chennai, Trivandrum, Kochi and all those places have strong 3G signals.
Utter rubbish. India has a massive middle-class that is equivalent to the US in population. Millions of people in India already buy Apple products.
It's not very classy to mock a tablet aimed at education.
Middle class isn't defined by an average income throughout the world, but between the lower and upper class, so comparing to the US really doesn't define anything, especially when we're talking about CE that will be cheaper for Americans over Indians due to import fees. Those two factors are likely to make the iPhone harder for the average middle class Indian to consider as the cost compared to pay is likely higher than the average middle class American.
Middle class isn't defined by an average income throughout the world, but between the lower and upper class, so comparing to the US really doesn't define anything, especially when we're talking about CE that will be cheaper for Americans over Indians due to import fees. Those two factors are likely to make the iPhone harder for the average middle class Indian to consider as the cost compared to pay is likely higher than the average middle class American.
seems to indicate that there are about 16 million "rich" Indians households, who make more than $35,000 USD/year. In addition there are 160 "middle class" households making $8-35K USD. I believe that is a straight conversion, not purchasing power, so the amount of disposable income may actually be higher.
Even if only the "Rich" segment is considered that's tens of millions of potential customers, and with India's economy growing robustly, there is a sizable market down the road.
seems to indicate that there are about 16 million "rich" Indians households, who make more than $35,000 USD/year. In addition there are 160 "middle class" households making $8-35K USD. I believe that is a straight conversion, not purchasing power, so the amount of disposable income may actually be higher.
Even if only the "Rich" segment is considered that's tens of millions of potential customers, and with India's economy growing robustly, there is a sizable market down the road.
Cost of living, cultural and lifestyle differences can certainly alter your disposable income levels at various income levels even within the same local grouping, but a $900 iPhone ? the cost of high-end Nokia phones selling for in Nokia stores in India last time I was there ? is a much greater percentage of your annual income than in the US for the middle class where the entry level iPhone is sold contract free for $650.
Cost of living, cultural and lifestyle differences can certainly alter your disposable income levels at various income levels even within the same local grouping, but a $900 iPhone ? the cost of high-end Nokia phones selling for in Nokia stores in India last time I was there ? is a much greater percentage of your annual income than in the US for the middle class where the entry level iPhone is sold contract free for $650.
I'm not doubting it your fundamental assertion (India will be a smaller market than rich nations), just trying to put some numbers to it, and point out that there is a good potential for future growth and even a number of people (several million) who might have the income to buy one in the near future.
I was in India last December and did see a lot of iPhone billboards as well as a decent number of iPhones in use. So there already is a market. It makes sense that Apple would open a store to help that market along, since India has a strong potential for growth and a huge number of people who may be in iPhone-buying range soon.
Also, Apple Stores don't just sell iPhones. Cheaper iPods and even laptops will also find a larger market.
Anyone who has tried to start a foreign owned business in India knows how many barriers there are to set up and operate. Indian officials are many and have their hands out for bribes and payoffs.
Corruption has nothing to do with poverty but is based solely on a moral choice. These choices that are commonly made in India are to the detriment of the entire country and keep them in poverty in my opinion. I have seen it first hand and am anxiously waiting for India to grow up and leave bribery as a way of life behind her.
Apple can expect that half of the money needed to open a store in India will end up being paid in bribes. I can't see Apple doing that.
It'll be nice to have official Apple Stores in India, although I have to say the iMagine stores are doing a good job. They are laid out and work almost exactly like any apple store. I've bought multiple products from Delhi imagine store there and the experience has been as good as apple store hamburg. Better in fact due to being smaller and having smaller crowd and almost no waiting time.
The Indian market potential is five years away for Apple. Establish a beachhead, for sure, but don't expect too much in the next couple of years from India. Very PC-centric, and 3G is not even really rolled out, so wireless data has a long ways to go. Wifi penetration is low too.
China is where Apple is going gangbusters in the next five.
I can't speak for all of India, but 3G is all over Bangalore and speeds are passable. (about 1mbit)
One should note that India started to open up its market and started on the road economic liberalization 20 years after China did. Despite this the quality of life in the two countries is remarkably similar.
However, India will never achieve the same rate of development as China for one simple reason. India is a democracy and as such people have a voice and the power to change things. In China growth and development can be dictated in a far more efficient way. However, as we all know this is at the expense of freedom.
A good way of looking at things is as follows. China is a 8 lane Highway which is smooth as silk, however, there is one big speed bump down the line called 'political reform' which may lead to the car going off the road. On the other hand, India is a 6 lane Highway which is full of potholes, the car can only go as fast as the potholes allow and therefore it will never go off the road.
For Apple and for other companies at the moment both markets are a huge win!!
I can't speak for all of India, but 3G is all over Bangalore and speeds are passable. (about 1mbit)
3G is there everywhere...but Speeds are not constant..it will take some time
even in cities some places you get uninterrupted coverage while in some places you wont get..i dont think its a problem only in India it will be in most of the countries..
Still Smartphone market is developing in our country and as of Now most of the people are interested in Galaxy S2...Apple delayed earlier iPhones so obviously people went for other phones..
but i guess apple will do something to gain marketshare here as we are too big to pass
All the people who are wondering why on earth Apple should bother with the Indian market - there are some very important reasons for Apple to play in India.
Just as China is today the hardware manufacturer for the world, India has today become the software developer to the world. Pretty much most software today has significant components that are developed in India - and this is true about Microsoft, Google, Oracle, and literally every major software developer in the world - except for Apple.
One of the key reasons why Indians dont develop much software for Apple platforms, is because Indians are exposed exclusively to Windows while learning. It is only today, since the advent of the iOS App Store that there are significant number of large and small developers in India working on Apple platforms.
Apple can benefit significantly by making Macs more accessible in India, via Education Discounts, etc. Even today, Apple's Education discounts in India insist on College ID - If you have a child studying in Primary School, no luck with Education discounts in India. The reason for this, is that if Apple offered regular Education Discounts to a market like India, pretty much EVERYONE would qualify, which makes it rather pointless!
More importantly, Apple's third party partners - like the Imagine Store and the iStore have significant restrictions in terms of Servicing - they are not allowed to service an iPhone or Mac that has not been purchased in India. Considering the number of these devices that are purchased in HK, Canada or US, this restriction is quite a major problem for consumers here. Hopefully, Apple running its own store will not have such restrictions - because they dont have these restrictions anywhere else in the world!
India is also a great market for Apple to explore lower cost products. Foxconn already has manufacturing facilities in India, and there is no reason why Apple cannot ask Foxconn to make a low cost product specifically targeting the Indian market, in India itself. If Nokia and Samsung can make phones in India, Apple can! If Apple launches a low cost product that is made in India, then their overall competitiveness in India would be significantly better.
While there are a lot of people complaining that India is not well connected, and there isnt even a proper 3G network, etc., they are missing some big things. Within the next 12-24 months, Reliance's 4G network would be active across the length and breadth of India. Out of the blue, India would have actually leapfrogged even developed countries to offer the first nationwide 4G network. At that point, connectivity would be the last worry for Apple!
Thanks Flaneur, It is just my point of view regarding the situation in India, I have no problems with people stating facts and posting links abt the problems in India. Which country doesn't. Apple ][ is free to have his point of view and it does not matter as Apple (the company) is not going to listen to him or to me and they have their plans.
Some have posted that people in India have a problem with buying apple products in india due to their high cost, that is becoz their are no carrier locks with multi year contracts. From what I have gathered, in US even though the phones are priced lower there is a high monthly plan that they have to subscribe for a minimum period of 2 years, starting from $40 that amounts to almost a thousand dollars plus the $199 for the 4S. Here I bought a 4S paying 45k and am free to choose the rate plan I want too ranging from $5 - $10. At the end of two years it works out the same or maybe slightly cheaper.
The only problem wud be the up front cost to be paid for buying the handset, especially now that the dollar is quoting at over Rs. 50, there are credit card tie ups which charge a max of $20 for buying the Apple products for 3,6,9 months emi, I bought mine like that.
Regarding 3G coverage I think major players have done a good job at rolling out the service and with affordable 3G plan especially in Bangalore, have not had any issues with one of my connection and I use the 4s on edge and don't find much of an issue with the type of info I need to access, once home I prefer my iPad2 to the iPhone anytime.
And regarding the buying power of the Indians, let us say even if the said 1-2 percent of Indians buy into the Apple products, that wud be a huge addition and It will definitely rank in the top ten markets for Apple.
Having said that we just will have to wait and see as and when Apple opens a store in India and I have a feeling that if they do they will do very well to open one in Bangalore as it has the most people who are hooked online and will be much appreciated. Cant wait for it to happen.
If Apple brings its latest offerings to India at an UNLOCKED prices of say INR 30K for IPHONE, then it will be an instant hit, and I ca definitely say it it with a guarantee that APPLE will conquer the India markets within no time......
The key over here is that till the time smartphone buyers in India feel that there is a huge price differential between INDIA and USA IPHONE prices, despite the fact that INDIA is poorer than USA, APPLE products will be unsuccessful in INDIA, since the consumers will feel that APPLE is biased and is its not worth buying such a costly smartphone when the 3G Data prices are very high !!!
APPLE, if at all plans to be successful in INDIA, it has to change its strategy.
All the people who are wondering why on earth Apple should bother with the Indian market - there are some very important reasons for Apple to play in India.
Just as China is today the hardware manufacturer for the world, India has today become the software developer to the world. Pretty much most software today has significant components that are developed in India - and this is true about Microsoft, Google, Oracle, and literally every major software developer in the world - except for Apple.
One of the key reasons why Indians dont develop much software for Apple platforms, is because Indians are exposed exclusively to Windows while learning. It is only today, since the advent of the iOS App Store that there are significant number of large and small developers in India working on Apple platforms.
Apple can benefit significantly by making Macs more accessible in India, via Education Discounts, etc. Even today, Apple's Education discounts in India insist on College ID - If you have a child studying in Primary School, no luck with Education discounts in India. The reason for this, is that if Apple offered regular Education Discounts to a market like India, pretty much EVERYONE would qualify, which makes it rather pointless!
More importantly, Apple's third party partners - like the Imagine Store and the iStore have significant restrictions in terms of Servicing - they are not allowed to service an iPhone or Mac that has not been purchased in India. Considering the number of these devices that are purchased in HK, Canada or US, this restriction is quite a major problem for consumers here. Hopefully, Apple running its own store will not have such restrictions - because they dont have these restrictions anywhere else in the world!
India is also a great market for Apple to explore lower cost products. Foxconn already has manufacturing facilities in India, and there is no reason why Apple cannot ask Foxconn to make a low cost product specifically targeting the Indian market, in India itself. If Nokia and Samsung can make phones in India, Apple can! If Apple launches a low cost product that is made in India, then their overall competitiveness in India would be significantly better.
While there are a lot of people complaining that India is not well connected, and there isnt even a proper 3G network, etc., they are missing some big things. Within the next 12-24 months, Reliance's 4G network would be active across the length and breadth of India. Out of the blue, India would have actually leapfrogged even developed countries to offer the first nationwide 4G network. At that point, connectivity would be the last worry for Apple!
Samsung/Nokia phones are of the same quality at high end as you obtain overseas. All goods defined as luxury being imported into India get slapped with 36% tax and then if you move between states it another tax on top. IPhones are expensive, but it is not Apple trying to put up the prices, but the additional tax requirements.
iStore run by Reliance are not on par with Apple store overseas in general basis, I live in Mumbai and have been to couple of stores across India and prior to India, I live in Singapore, USA (East & West Coast) and Australia. The staff in the third party stores are not as well trained and sometimes as is the case in India, will lie to before admitting that their do not know what their talking about.
My last comment has nothing to do racist/class/west vs East etc, it just a fact in India. Admitting you are wrong is not a cultural practice in staff and you learn the hard way, when trying to run a business. Majority of successful Indian businesses have understood that failure is hand in hand with success, but average Indian does not.
As for telecommunications across India, I must say that the data speed is not on par with USA, but I have 3G Vodafone and it has been pretty good in most cities and as for average call, never had a drop call like I had in New York with AT&T
Comments
Yeah, I think I remember reading an article about that here a while back when the iPhone 4S was being released in China.
Even though, it's "free", I can't really say that it's cheap though, as the customer still ends up paying quite a bit to use their phone.
A 32-gigabyte iPhone 4S on a three-year contract would cost around $45 per month, while a 16-gigabyte on a two-year contract would cost approximately $60, reports Bloomberg.
Still better then the USA where the cheapest is $200 and data plans from the two biggest carriers by far offer lousy data plans unless you are grandfathered to unlimited data.
I'll quote one word from your original post, Apple ][ -- "shitload."
I don't have a problem with facts and reality, just with barbaric xenophobia. Fake barbaric xenophobia for pay is even worse.
It's a common term. Your politically correct mind is causing you to invent imaginary outrage where there is none.
If Apple sells 50 million iPads, then they've sold a shitload of iPads. If somebody is rich, then they have a shitload of money. If there's a lot of people somewhere, then that's a shitload of people. Your highly sensitive PC mind is not my problem.
And what's with the pay crap? Are you that stupid that you really think that I am a paid poster here?
Still better then the USA where the cheapest is $200 and data plans from the two biggest carriers by far offer lousy data plans unless you are grandfathered to unlimited data.
I agree with you that cell phone plans in the US absolutely suck and are highly overpriced. As for me, I try to use WIFI as often as I can.
The Indian market potential is five years away for Apple. Establish a beachhead, for sure, but don't expect too much in the next couple of years from India. Very PC-centric, and 3G is not even really rolled out, so wireless data has a long ways to go. Wifi penetration is low too.
China is where Apple is going gangbusters in the next five.
I expect Apple Stores to be successful in India because Apple has shown us they grow their B&M stores cautiously, but I agree with your assessment. I'd even say 5 years is optimistic for India. Apple may very well see a huge surge with doubling YoY but it'll still be small potatoes* compared to the other large countries.
* Couldn't think of an equivalent Indian phrasing for idiom.
But even if this ads only 1-2% of the indian people to buying anything from Apple, this will be huge.
THIS.
I don't mean to be rude, but my fellow Americans can be pretty ignorant when it comes to the rest of the world.
Even if only 1% of Indian people were to buy from apple, that's a market of twelve million, which is larger than the population of most of the states (and many of the countries) Apple already has stores in. 2% pushes that figure up to 24 million.
Also, to assume only 1% will buy from Apple is foolish. Apple is going to be huge in India.
I don't think that Apple should concentrate too much on India. The average salary there is extremely low. Isn't Android doing ok in India, because the devices are dirt cheap? There might be a shitload of people in India, but only a few of them will be able to buy Apple's devices.
India is where they also made and released a $35 Android tablet. I'm sure that's a technological marvel and a real pleasure to use.
Utter rubbish. India has a massive middle-class that is equivalent to the US in population. Millions of people in India already buy Apple products.
It's not very classy to mock a tablet aimed at education.
Phones like S2 are selling here for $650..so i dont think people not ready to shell money for things..
but the important factor is Not many people here in india shown interest in Smart phone even a year back...i am working in a MNC with atleast 250 Mech Engineers i can see barely 4/5 iPhone 3GS/4S and Few Galaxy S2...rest of us are still with Nokia..
major issue is a Ananth wrote Penetration of 3G..without a faster Ineternet connection whats the use of Smartphone?
Where do you live? I've been through Delhi, Mumbai, Chennai, Trivandrum, Kochi and all those places have strong 3G signals.
Utter rubbish. India has a massive middle-class that is equivalent to the US in population. Millions of people in India already buy Apple products.
It's not very classy to mock a tablet aimed at education.
Middle class isn't defined by an average income throughout the world, but between the lower and upper class, so comparing to the US really doesn't define anything, especially when we're talking about CE that will be cheaper for Americans over Indians due to import fees. Those two factors are likely to make the iPhone harder for the average middle class Indian to consider as the cost compared to pay is likely higher than the average middle class American.
Middle class isn't defined by an average income throughout the world, but between the lower and upper class, so comparing to the US really doesn't define anything, especially when we're talking about CE that will be cheaper for Americans over Indians due to import fees. Those two factors are likely to make the iPhone harder for the average middle class Indian to consider as the cost compared to pay is likely higher than the average middle class American.
One study:
http://blog.shunya.net/shunyas_blog/...th-report.html
seems to indicate that there are about 16 million "rich" Indians households, who make more than $35,000 USD/year. In addition there are 160 "middle class" households making $8-35K USD. I believe that is a straight conversion, not purchasing power, so the amount of disposable income may actually be higher.
Even if only the "Rich" segment is considered that's tens of millions of potential customers, and with India's economy growing robustly, there is a sizable market down the road.
One study:
http://blog.shunya.net/shunyas_blog/...th-report.html
seems to indicate that there are about 16 million "rich" Indians households, who make more than $35,000 USD/year. In addition there are 160 "middle class" households making $8-35K USD. I believe that is a straight conversion, not purchasing power, so the amount of disposable income may actually be higher.
Even if only the "Rich" segment is considered that's tens of millions of potential customers, and with India's economy growing robustly, there is a sizable market down the road.
Cost of living, cultural and lifestyle differences can certainly alter your disposable income levels at various income levels even within the same local grouping, but a $900 iPhone ? the cost of high-end Nokia phones selling for in Nokia stores in India last time I was there ? is a much greater percentage of your annual income than in the US for the middle class where the entry level iPhone is sold contract free for $650.
Cost of living, cultural and lifestyle differences can certainly alter your disposable income levels at various income levels even within the same local grouping, but a $900 iPhone ? the cost of high-end Nokia phones selling for in Nokia stores in India last time I was there ? is a much greater percentage of your annual income than in the US for the middle class where the entry level iPhone is sold contract free for $650.
I'm not doubting it your fundamental assertion (India will be a smaller market than rich nations), just trying to put some numbers to it, and point out that there is a good potential for future growth and even a number of people (several million) who might have the income to buy one in the near future.
I was in India last December and did see a lot of iPhone billboards as well as a decent number of iPhones in use. So there already is a market. It makes sense that Apple would open a store to help that market along, since India has a strong potential for growth and a huge number of people who may be in iPhone-buying range soon.
Also, Apple Stores don't just sell iPhones. Cheaper iPods and even laptops will also find a larger market.
Corruption has nothing to do with poverty but is based solely on a moral choice. These choices that are commonly made in India are to the detriment of the entire country and keep them in poverty in my opinion. I have seen it first hand and am anxiously waiting for India to grow up and leave bribery as a way of life behind her.
Apple can expect that half of the money needed to open a store in India will end up being paid in bribes. I can't see Apple doing that.
The Indian market potential is five years away for Apple. Establish a beachhead, for sure, but don't expect too much in the next couple of years from India. Very PC-centric, and 3G is not even really rolled out, so wireless data has a long ways to go. Wifi penetration is low too.
China is where Apple is going gangbusters in the next five.
I can't speak for all of India, but 3G is all over Bangalore and speeds are passable. (about 1mbit)
However, India will never achieve the same rate of development as China for one simple reason. India is a democracy and as such people have a voice and the power to change things. In China growth and development can be dictated in a far more efficient way. However, as we all know this is at the expense of freedom.
A good way of looking at things is as follows. China is a 8 lane Highway which is smooth as silk, however, there is one big speed bump down the line called 'political reform' which may lead to the car going off the road. On the other hand, India is a 6 lane Highway which is full of potholes, the car can only go as fast as the potholes allow and therefore it will never go off the road.
For Apple and for other companies at the moment both markets are a huge win!!
I can't speak for all of India, but 3G is all over Bangalore and speeds are passable. (about 1mbit)
3G is there everywhere...but Speeds are not constant..it will take some time
even in cities some places you get uninterrupted coverage while in some places you wont get..i dont think its a problem only in India it will be in most of the countries..
Still Smartphone market is developing in our country and as of Now most of the people are interested in Galaxy S2...Apple delayed earlier iPhones so obviously people went for other phones..
but i guess apple will do something to gain marketshare here as we are too big to pass
Just as China is today the hardware manufacturer for the world, India has today become the software developer to the world. Pretty much most software today has significant components that are developed in India - and this is true about Microsoft, Google, Oracle, and literally every major software developer in the world - except for Apple.
One of the key reasons why Indians dont develop much software for Apple platforms, is because Indians are exposed exclusively to Windows while learning. It is only today, since the advent of the iOS App Store that there are significant number of large and small developers in India working on Apple platforms.
Apple can benefit significantly by making Macs more accessible in India, via Education Discounts, etc. Even today, Apple's Education discounts in India insist on College ID - If you have a child studying in Primary School, no luck with Education discounts in India. The reason for this, is that if Apple offered regular Education Discounts to a market like India, pretty much EVERYONE would qualify, which makes it rather pointless!
More importantly, Apple's third party partners - like the Imagine Store and the iStore have significant restrictions in terms of Servicing - they are not allowed to service an iPhone or Mac that has not been purchased in India. Considering the number of these devices that are purchased in HK, Canada or US, this restriction is quite a major problem for consumers here. Hopefully, Apple running its own store will not have such restrictions - because they dont have these restrictions anywhere else in the world!
India is also a great market for Apple to explore lower cost products. Foxconn already has manufacturing facilities in India, and there is no reason why Apple cannot ask Foxconn to make a low cost product specifically targeting the Indian market, in India itself. If Nokia and Samsung can make phones in India, Apple can! If Apple launches a low cost product that is made in India, then their overall competitiveness in India would be significantly better.
While there are a lot of people complaining that India is not well connected, and there isnt even a proper 3G network, etc., they are missing some big things. Within the next 12-24 months, Reliance's 4G network would be active across the length and breadth of India. Out of the blue, India would have actually leapfrogged even developed countries to offer the first nationwide 4G network. At that point, connectivity would be the last worry for Apple!
Some have posted that people in India have a problem with buying apple products in india due to their high cost, that is becoz their are no carrier locks with multi year contracts. From what I have gathered, in US even though the phones are priced lower there is a high monthly plan that they have to subscribe for a minimum period of 2 years, starting from $40 that amounts to almost a thousand dollars plus the $199 for the 4S. Here I bought a 4S paying 45k and am free to choose the rate plan I want too ranging from $5 - $10. At the end of two years it works out the same or maybe slightly cheaper.
The only problem wud be the up front cost to be paid for buying the handset, especially now that the dollar is quoting at over Rs. 50, there are credit card tie ups which charge a max of $20 for buying the Apple products for 3,6,9 months emi, I bought mine like that.
Regarding 3G coverage I think major players have done a good job at rolling out the service and with affordable 3G plan especially in Bangalore, have not had any issues with one of my connection and I use the 4s on edge and don't find much of an issue with the type of info I need to access, once home I prefer my iPad2 to the iPhone anytime.
And regarding the buying power of the Indians, let us say even if the said 1-2 percent of Indians buy into the Apple products, that wud be a huge addition and It will definitely rank in the top ten markets for Apple.
Having said that we just will have to wait and see as and when Apple opens a store in India and I have a feeling that if they do they will do very well to open one in Bangalore as it has the most people who are hooked online and will be much appreciated. Cant wait for it to happen.
The key over here is that till the time smartphone buyers in India feel that there is a huge price differential between INDIA and USA IPHONE prices, despite the fact that INDIA is poorer than USA, APPLE products will be unsuccessful in INDIA, since the consumers will feel that APPLE is biased and is its not worth buying such a costly smartphone when the 3G Data prices are very high !!!
APPLE, if at all plans to be successful in INDIA, it has to change its strategy.
All the people who are wondering why on earth Apple should bother with the Indian market - there are some very important reasons for Apple to play in India.
Just as China is today the hardware manufacturer for the world, India has today become the software developer to the world. Pretty much most software today has significant components that are developed in India - and this is true about Microsoft, Google, Oracle, and literally every major software developer in the world - except for Apple.
One of the key reasons why Indians dont develop much software for Apple platforms, is because Indians are exposed exclusively to Windows while learning. It is only today, since the advent of the iOS App Store that there are significant number of large and small developers in India working on Apple platforms.
Apple can benefit significantly by making Macs more accessible in India, via Education Discounts, etc. Even today, Apple's Education discounts in India insist on College ID - If you have a child studying in Primary School, no luck with Education discounts in India. The reason for this, is that if Apple offered regular Education Discounts to a market like India, pretty much EVERYONE would qualify, which makes it rather pointless!
More importantly, Apple's third party partners - like the Imagine Store and the iStore have significant restrictions in terms of Servicing - they are not allowed to service an iPhone or Mac that has not been purchased in India. Considering the number of these devices that are purchased in HK, Canada or US, this restriction is quite a major problem for consumers here. Hopefully, Apple running its own store will not have such restrictions - because they dont have these restrictions anywhere else in the world!
India is also a great market for Apple to explore lower cost products. Foxconn already has manufacturing facilities in India, and there is no reason why Apple cannot ask Foxconn to make a low cost product specifically targeting the Indian market, in India itself. If Nokia and Samsung can make phones in India, Apple can! If Apple launches a low cost product that is made in India, then their overall competitiveness in India would be significantly better.
While there are a lot of people complaining that India is not well connected, and there isnt even a proper 3G network, etc., they are missing some big things. Within the next 12-24 months, Reliance's 4G network would be active across the length and breadth of India. Out of the blue, India would have actually leapfrogged even developed countries to offer the first nationwide 4G network. At that point, connectivity would be the last worry for Apple!
Samsung/Nokia phones are of the same quality at high end as you obtain overseas. All goods defined as luxury being imported into India get slapped with 36% tax and then if you move between states it another tax on top. IPhones are expensive, but it is not Apple trying to put up the prices, but the additional tax requirements.
iStore run by Reliance are not on par with Apple store overseas in general basis, I live in Mumbai and have been to couple of stores across India and prior to India, I live in Singapore, USA (East & West Coast) and Australia. The staff in the third party stores are not as well trained and sometimes as is the case in India, will lie to before admitting that their do not know what their talking about.
My last comment has nothing to do racist/class/west vs East etc, it just a fact in India. Admitting you are wrong is not a cultural practice in staff and you learn the hard way, when trying to run a business. Majority of successful Indian businesses have understood that failure is hand in hand with success, but average Indian does not.
As for telecommunications across India, I must say that the data speed is not on par with USA, but I have 3G Vodafone and it has been pretty good in most cities and as for average call, never had a drop call like I had in New York with AT&T