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.
US Population ~ 300 mil ~ Indian Middleclass
That would mean there is a proportionally large wealthy population. And from my experience, there are.
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
I have to correct you on the 36 % tax on iPhones in India, I dont know from where you got that figure, but forced me to check on the Bill I got while purchasing the iPhone here in Bangalore, India from Croma one of the two retail stores that sell Apple products, and it is 5% i.e. Rs. 44500 is the cost of the iPhone which includes Rs. 2119.05. A couple of years ago mobiles were taxed down from the high rate in India. So the reason fro iPhones being expensive can be any thing else other than the tax rate. It is a central tax and does not change from state to state unless additional tax has been imposed on a particular class of product. As per my knowledge no state has imposed additional taxes on mobile phones. I can be wrong on that last point.
Voice call have never been a issue in India but data speed are improving every day especially since the last few years when smartphones have made a huge inroad into the Indian Markets. I have not been to US so cannot really compare but I will take your word on that one.
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.
Gotta disagree with you on that. It is 5%, not 36%. Your information is outdated. Also, If this were true every other mobile manufacturer must have the same situation. Which is not so, only iPhones are significantly costlier than their international price. Other samsung/nokia phones sell at the same rate in india as elsewhere. So, it is definitely an apple problem.
Also, the iPad doesn't seem to face the same amount of price differential, though even that is costlier !! I suspect it must have something to do with where they are sourcing their parts from and general lack of focus on india.
Just to add a quick reply - I am currently in the UK and the unlocked iPhone 4S costs the same here as it does in India. So, I do not think that it is a case of Apple products being more expensive in India, but rather a case of Apple products being cheaper in the US.
If Apple do open stores here in India, they will do relatively well. However, I don't expect lines to form whenever a new product is launched. I see more and more people using Apple products here, but apart from a very modest line of some 15 people who were there to buy the iPad 2 when it launched, I don't think there will be that euphoria that is there in China. And the people who had lined up to buy the iPad 2 were the guys who had pre-booked the 64GB 3G model, as supplies were initially limited.
So Apple is still a niche product that is slowly growing in India. I am sure that Apple have enough Stats based on the re-sellers to know whether or not to invest big-time in India. I mean, one can walk into an Imagine store and pick up a White iPhone 4S 64GB model. Make of that what you will.
One of the rules laid down by the Govt. for 100% Foreign owned brands setting up shop in India is that 30% of the investment must be sourced from domestic small scale industries. What can Apple possibly source from India? Packaging material?
Overall, it may still be a beauractatic nightmare to invest in India and maybe the sales really don't justify Apple investing big-time here - at least not yet.
Comments
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.
US Population ~ 300 mil ~ Indian Middleclass
That would mean there is a proportionally large wealthy population. And from my experience, there are.
US Population ~ 300 mil ~ Indian Middleclass
That would mean there is a proportionally large wealthy population. And from my experience, there are.
Again, middle class is relative to the country, not to the product.
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
I have to correct you on the 36 % tax on iPhones in India, I dont know from where you got that figure, but forced me to check on the Bill I got while purchasing the iPhone here in Bangalore, India from Croma one of the two retail stores that sell Apple products, and it is 5% i.e. Rs. 44500 is the cost of the iPhone which includes Rs. 2119.05. A couple of years ago mobiles were taxed down from the high rate in India. So the reason fro iPhones being expensive can be any thing else other than the tax rate. It is a central tax and does not change from state to state unless additional tax has been imposed on a particular class of product. As per my knowledge no state has imposed additional taxes on mobile phones. I can be wrong on that last point.
Voice call have never been a issue in India but data speed are improving every day especially since the last few years when smartphones have made a huge inroad into the Indian Markets. I have not been to US so cannot really compare but I will take your word on that one.
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.
Gotta disagree with you on that. It is 5%, not 36%. Your information is outdated. Also, If this were true every other mobile manufacturer must have the same situation. Which is not so, only iPhones are significantly costlier than their international price. Other samsung/nokia phones sell at the same rate in india as elsewhere. So, it is definitely an apple problem.
Also, the iPad doesn't seem to face the same amount of price differential, though even that is costlier !! I suspect it must have something to do with where they are sourcing their parts from and general lack of focus on india.
If Apple do open stores here in India, they will do relatively well. However, I don't expect lines to form whenever a new product is launched. I see more and more people using Apple products here, but apart from a very modest line of some 15 people who were there to buy the iPad 2 when it launched, I don't think there will be that euphoria that is there in China. And the people who had lined up to buy the iPad 2 were the guys who had pre-booked the 64GB 3G model, as supplies were initially limited.
So Apple is still a niche product that is slowly growing in India. I am sure that Apple have enough Stats based on the re-sellers to know whether or not to invest big-time in India. I mean, one can walk into an Imagine store and pick up a White iPhone 4S 64GB model. Make of that what you will.
One of the rules laid down by the Govt. for 100% Foreign owned brands setting up shop in India is that 30% of the investment must be sourced from domestic small scale industries. What can Apple possibly source from India? Packaging material?
Overall, it may still be a beauractatic nightmare to invest in India and maybe the sales really don't justify Apple investing big-time here - at least not yet.