Wednesday, August 26, 2009

iPhone in India

The total cost of ownership (TCO) of the iPhone in India is dirt cheap compared to the United States. The cost of the service plans in India are incredibly cheap. Through Vodafone India, the minimum TCO for two years is about $700 while through ATT in the United States the TCO for two years is over $2000. That would be the cost of the handheld which is subsidized plus the cost of the service plan which is where the money is of course. The unlimited data plan is not really unlimited as every user has a typical usage amount. 99.9% of iphone users are below 200MB and the average use is around 150 MB. So, the Vodafone service plans are just fine. Basically, an iphone plan through Vodafone is $16 per month and includes 200MB of data and even if you go over so what? Your average user in India is never going to reach $80 per month which is what the minimum cost is for having an iPhone service plan through ATT USA. We have no $16 option like you do in India. You Indian analysts need some pointers on how to make realistic comparisons. Forget the data comparison, just compare voice plans and text messaging rates. In the USA, incoming calls are charged from your minutes. In the USA, you cannot send text messages on an individual basis for a cheap rate os 1 Rupee like you can in India. Once again, you have to commit to a monthly plan whether you actually need those messages or not.

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