Cheaper' iPhone 5C may cost Rs 40,000 in India
Apple launches iPhone 5S, cheaper 5C, eyes India and China
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DELHI: A few months ago when phone analysts started talking about a
'cheap iPhone', there was an indication that Apple would finally launch
an affordable iPhone for price-sensitive markets in countries like China
and India. Apple did launch a 'cheaper' phone on Tuesday night. But
this cheaper phone, called iPhone 5C, is hardly affordable.
The basic model of iPhone 5C, which has hardware similar to iPhone 5 but in a plastic body, will be available for $99 (on contract) in the US. But don't get mistaken by the low price. In India, the device is expected to cost around Rs 40,000.
The $99 is a subsidized price and is applicable only when a consumer buys the phone along with a two-year contract with a telecom operator. Almost all smartphones in the US and some other developed countries like the UK are sold on the contract basis. The device manufacturer, which in case of iPhone is Apple, and telecom operators enter into a partnership. The telecom operator pays the full price of the iPhone to Apple. It then sells that phone at a subsidized price but recoups the money through the services and data plans that a consumer has to take as part of the two-year contract.
The basic model of iPhone 5C, which has hardware similar to iPhone 5 but in a plastic body, will be available for $99 (on contract) in the US. But don't get mistaken by the low price. In India, the device is expected to cost around Rs 40,000.
The $99 is a subsidized price and is applicable only when a consumer buys the phone along with a two-year contract with a telecom operator. Almost all smartphones in the US and some other developed countries like the UK are sold on the contract basis. The device manufacturer, which in case of iPhone is Apple, and telecom operators enter into a partnership. The telecom operator pays the full price of the iPhone to Apple. It then sells that phone at a subsidized price but recoups the money through the services and data plans that a consumer has to take as part of the two-year contract.
VIKASH CHANDRA MISHRA
PGDM
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