Thursday, August 28, 2008

iPhone 2G: More Bugs than Features

The Indian perspective is completely missed out. In a highly price sensitive market, how did Apple think that it can sell iPhone at a price of Rs 31,000 and with many basic features missing? No video calling,no AD2P on the Bluetooth,CAN'T share ANY (mp3, images,videos....) files via bluetooth, can't use as a wireless modem, (you pay ridiculous data charges to activate internet on your phone, but cannot connect it to your PC and browse when you are at home) no copy and paste,(cannot copy a part of a.... say.... email & send it....have to type it out yourself)no 3.2 or 5 megapixel camera,(the 2MP camera it carries is worst camera i've ever seen..... photos look like they have come out of a VGA camera) no video recording with camera,no front camera,no flash.no JAVA supportNo physical keyboard (BELIEVE me! this alone is a dealbreaker...touch keyboard as good as it looks...once you use it then only you come to know about the importance of having a hard keypad)No 3G network yet in India..so why pay for expensive 3G phone if you cant use its 3G services ... so, for India, iPhone 2.0 is no better than its first versionNo removable battery. (You cannot change battery. Have to send it to apple outlet.. Come on now!!!!...This is not an iPod. Its a bloody phone. You cannot live without phone for 2-3 days) No haptic feedback andcannot send MMS,can't use as external storage device (16 GB of utter waste..next time you go to your friend's house & find some interesting songs, movies, etc...sorry you cannot connect your '16 GB' phone and share it!!!! no FM radio,can't use your mp3 files as ringtones,(This is heights man!!!) cannot insert any other SIM card….completely tied to iTunes... Connect to your friend's iTunes & you risk erasing everything on your phone.list goes on & on & on….

The total iPhones sold so far across India is just 500 pieces. It was launched by Airtel and Vodafone. Did Airtel and Vodafone go wrong? Or was it a simple Brand Positioning strategy? Airtel and Vodafone(formerly Hutch) are the biggest Telecom players in the Indian market. With several years of experience they would have a thorough understanding of Customer Buying Behavior. Both these players knew that they couldnt sell more than 1000 phones at that price !!! The strategy they are following is a Brand Positioning Strategy. Apple was making its debut in the Indian handset market. Being late to the market, brand positioning becomes highly significant. Brand positioning is defined as the way the customers perceive this brand in their minds. Is it something ordinary or is it a status symbol or is it a "must have" product. The image that iPhone creates is "Status Symbol". iPhone brand has already achieved this position. Very soon iPhone will be available at almost half of its price tied to a tariff plan from the network operator. This will push the sales to a great extent as people will perceive this a "Status Symbol" at cheaper price !!! Suppose iPhone was priced lower at the beginning itself, customers would perceive this phone as stale apple rather than a status symbol. iPhone has pulled off a wonderful entry strategy. Watch out for the strategy unwind in the coming months.