We all knew that the iPhone 3G wasn’t doing too well in India, at least in the official capacity. The lack of 3G, the high price point and the coupled high tariff plans were always a recipe for disaster. But we never realised just how badly it was doing till now.
The Telegraph is reporting that Airtel and Vodafone – the two official distributors of the iPhone in India – are unloading their unsold iPhones to other countries, such as Sri Lanka.
The report cites industry sources saying that of the 40,000 iPhones that were initially imported, only 20,000 have been sold so far. That’s a pretty dismal number by any standard.
“One iPhone distributor recently offloaded part of their unsold consignment to Sri Lanka, where it also operates, and hopes to get a better response,” an industry analyst, who did not wish to be named, told The Telegraph.
Both Vodafone and Airtel operate in the southern island nation, so it’s unclear who the concerned party is in the above statement. Sri Lanka is expected to have a better response because of the availability of 3G Internet there, which is a crucial factor for a phone that depends highly on Web-based activities.
The same old reasons have been blamed for the iPhone’s dismal performance:
1) Cheaper, unlocked iPhones in the grey market, which has apparently sold around 80,000 handsets so far
2) The high price and locking the phones to the carrier service
This doesn’t paint a rosy picture for the upcoming launch of the iPhone 3GS, with analysts say the new version will sell if the pricing and marketing strategies are suited to India.
“If the iPhone is to increase its sales in India, it needs a price correction and a India-specific strategy which probably aims at larger volumes at lower margins,” said Romal Shetty, telecom analyst with consultancy firm KPMG.
Source: The Telegraph
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