Why iPhone is Costlier in India Than US?
Subscribe to similar insightApple iPhone costs just $199 in the US but if you want an iphone in
India you'll have to pay at least Rs 31,000 so the big question is why
is there a price disparity in this Apple device.
According to
Sanjay Kapoor, President Mobility, Airtel, this is due to the fact the
device in the US comes bundled with a 3-year lock in period, which is
not the case in India.
This essentially means a consumer in the
US buys the iPhone for $199 which is just the cost of hardware. He then
pays $150 to activate the handset and then subsequently a part of the
tariff plan he chooses goes to Apple.
Whereas in India the cost
is upfront Rs 31,000 which represents not just the cost of owning but
also using it. It is interesting that telecom giants Airtel and
Vodafone are making no margins on this high end device.
When
Steve Jobs launched the new 3G iPhone from Apple's stable in June, the
trendier new version created buzz because of the price almost half of
the earlier version. But when the same iPhone came to India the price
was a party pooper.
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