Wednesday, September 18, 2013

Will Apple iPhone 5C survive?

Apple says Rs. 35000 is cheap.. but Indian Government says Rs. 20 a day and you are rich..

The iPhone 5c was supposed to be Apple's weapon to take on Android in at least the mid-level smartphone segment, if an entry-level pricing was never going to come to fruition. However, one look at the off-contract pricing for the iPhone 5s in various regions, and all those hopes can be put to rest.

The entry-level 16GB iPhone 5c without a contract has been priced at $549 in the US. That comes out to a whopping Rs. 35,000 at current exchange rates (1 USD = 63.65 INR) and does not include the duties and other charges that come in while pricing a product in India. If you were hoping for a sub-Rs. 25,000 pricing for the iPhone 5c in India, it's safe to say we won't see anything like that.

The pricing in other regions is even worse, with the iPhone 5c priced at 599 euros (approximately Rs. 50,500) in Germany and 469 pounds in the UK (approximately Rs. 47,000). Of course both those prices include VAT, which can be sizeable. Pricing in Hong Kong is HKD 4,688 (approximately Rs. 38,500). However, it's the pricing in China, one of two "emerging markets" - the other being India - that the iPhone 5c was said to be targeting that is really surprising. The iPhone 5c price in China is 4488 Chinese Yuan Renminbi, which works out to over Rs. 46,500, without duties or any other charges.

With just a $100 price difference between the iPhone 5c and the iPhone 5s, it's a little difficult to fathom why the iPhone 5c even exists. The iPhone 5c surely won't help Apple penetrate into any newer markets, and its only selling point seems to the number of colours it's available in.

A man who could afford Rs 35,000 could ofcourse put a $100 (Rs 7000) to make it upto 42,000 and buy a 5S. Targetting the midlevel market is not for 5c in India. Even the Apple's shares shown the consciousness. Investors were concerned Monday that Apple didn't issue a press release announcing pre-order figures for the the iPhone 5c, a notion that Huberty rightly called "overblown." The concern over the lack of a press release sent shares tumbling on Sept. 16 as Apple dropped 3.2%. If Apple want to compete with low priced Android phones, i-phone has to come up ith a better strategy.