iPhone 3G prices slashed on lndia launch day

Vodafone has slashed the prices of iPhone 3G on the day of its launch in India. Two days before the launch on 22^nd August, Vodafone and Airtel announced that the iPhone 3G would be available at INR 31,000 for the 8GB version and INR 36,100 for the 16GB variant. However, when I went to a Vodafone store to buy one for me, I was told that Vodafone had reduced the prices.

Vodafone’s new prices are INR 29,640 for 8GB and INR 34,580 for the 16GB version. That’s a reduction of INR 1360 and INR 1520 on the 8 and 16GB variants respectively.

I reckon the price reduction could be due to either one or both of the following reasons:

1. After the prices were announced on 20^the August, “experts” after “experts” went on and on in the media about how this was a daylight robbery and that the prices in the US were about 4 times cheaper. Of course, none of them cared to explain the reason for the cheap prices in the US, i.e. that low price was possible because the customers had to agree to be bound by a 2-year lock-in period with a monthly tariff of at least $69.99. But this hue and cry over the high, unsubsidized prices in India would have left the Vodafone officials worried over potentially losing customers.
2. Vodafone might have tried to undercut its competition (Airtel) by launching with reduced prices. This is of course based on the premise that Airtel has not slashed prices like Vodafone. There were rumours that Vodafone might get a 15-day headstart for its iPhone 3G sales in India over Airtel since Vodafone enjoyed a worldwide tie-up with Apple to sell the iPhones as against an India-specific tie-up that Airtel entered into with Apple. But these rumours were quashed when 22^nd August was announced as the common launch date thereby nullifying any advantage for Vodafone. So it may be possible that Vodafone went ahead with a pricing strategy instead of a first-to-market strategy. By the way, the iPhone 3G packaging shows a M.R.P. of INR 36,000.

Either ways, price cuts are always good. Especially in these inflationary times! So I am not complaining. Why would I?! … I now have the sleek li’l beauty - my 16GB iPhone 3G, in my pocket right now! ;-)