iPhone - Not India phone?
According to Geoffrey Moore's technology adaptation life cycle model, every technology product takes its own cycle to create significant business proposition. To start with, the ‘Early adaptors’ (technology enthusiasts) would start evangelizing the product who contribute to 13.5% of the total customer base. In order to create a successful business, a technology product should capture the next major chunk called ‘Early majorities’, who constitute to 34% of the customers. Even though iPhone was able to initially attract certain technology enthusiasts (especially in a city like Bangalore), it has clearly not impressed Early Majorities. Given the fact that India is one of the hottest markets for mobile operators and handset manufactures, Apple clearly missed a huge opportunity by not understanding the psychology of Indian customers. This exclusive story talks about some of the major reasons for iPhone not able to take off in India.
Cost, Cost and Cost
The first shock for Indian customers came in the form of cost. Apple priced their 8 GB model for 31,000 rupees and 16 GB model for 36,100. Every Indian customer felt getting ripped off by hearing such an atrocious price, given competitive handset prices. Added to that, there are no well designed offerings around the product. It’s a well known fact that India is a land of EMIs and installments, where people even buy clothes on installment basis. Even for a city like Bangalore, which consists of knowledge workers having good amount of surplus income, the 31,000 pricing has made the phone simple unaffordable. Apple should have worked on innovative offering methods, where it could have planned on recovering the cost over a period, after catching the initial sales volume.
In developed countries like US, Apple has done proper home-work by offering the iPhone at $199 (works out around 8000 rupees) by tying up with telecom service providers. On the other hand, per capita income of US is 10 times more than India, which demands much smarter pricing strategy. This clearly shows that there needs to similar but much better pricing strategy should have been planned for Indian markets. The cost factor is been a major factor for iPhone not taking off in India.