Competing attractions on iPhone 5 series

Strong Competition between different network service provider 

Buyers of the ultra-premium iPhone 5 series in India can choose between a promise to allegedly reduce your mobile bill by half and another of paying nothing at all.  

Dual technology operator Reliance Communications (RCom) is offering both the iPhone 5s and iPhone 5c at monthly instalments that involve no bills for their other services such as calls, text messaging, data and national roaming. Consumers, however, would have to shell out Rs 2,599 a month for the iPhone 5c and Rs 2,999 a month for the iPhone 5s for 24 months. These offers do not involve a down payment either for the 16 Gb version.

“We are offering unlimited data and no hidden clauses, without throttling of speeds or cap on 3G data usage,” said Gurdeep Singh, president and chief executive officer of wireless business at RCom.

If one were to go with RCom's plan for the 16 Gb version, the effective payment over two years for the iPhone 5s would be Rs 71,976. The handset retails at Rs 53,000 each.

On its part, Airtel is offering a 50 per cent reduction in mobile billsfor those who purchase these handsets. For example if a subscriber were to pick the 2,000 plan from the company, it would come with 1,500 local minutes free, along with 600 text messages and 3 Gb of 3G data. Airtel claims the effective savings would be Rs 12,000 a year, for either of the handsets.

While Airtel's plan is available nationwide, RCom is offering this plan only in the 13 circles where it has a 3G licence, including Mumbai and Delhi. The operator also offers 3G services in Kolkata, Punjab, Rajasthan, Madhya Pradesh, Jammu and Kashmir, West Bengal, Himachal Pradesh, Bihar, Odisha, Assam and the Northeast.

“If a subscriber were to buy it in retail and pay bills over two years, it would work out to the same as the offers. But, if a subscriber wants to port out in the next 24 months, the monthly instalment will have to be paid,” said Anil Patrick, an independent tech analyst.  

RCom says it has set up special port-in services into its network and priority helplines for its Apple customers. “This launch comes shortly after our unique offer of 3G at 2G prices, which saw us gain tremendous traction in the data space. With the Apple iPhone 5c and iPhone 5s, we are confident of achieving our stated objective of 40 per cent share of the incremental smartphone market in our 13 3G circles,” said Singh.

The sales for the new handsets are also picking up, according to mobile retailers. “The inquires have been very good and there are a lot of footfalls today (Friday); we expect them to convert into sales. The pre-bookings have been low because the window this time has only been for three days as opposed to  eight to 10 days generally,” said Himanshu Chakravarthy, chief executive officer of TheMobileStore, who refused to share the number of pre-bookings.

According to an operator who refuses to be quoted, Apple expects to sell 300,000 units of the iPhone 5 series in three months.

The higher- end version is expected  to sell 200,000 units, while the rest of the sales are to be from the iPhone 5c. “Apple is looking at a target audience of 3.5 million overall post-paid users, whose monthly mobile bills amount to Rs 2,000 a month,” said the operator.

RCOM VS AIRTEL
 
RCom offer highlights

* No bills for data, text and calls for 24 months
* Bills only for international roaming, ISD calls
* No downpayment for 16 GB version of both handsets
* No cap on data usage

Airtel offer highlights

* Offers 50% discount on monthly rentals
* Has four plan offers for bills at Rs 600; Rs 1,000; Rs 1,600; Rs 2,000
* Effective savings at Rs 12,000 per year

RETAIL PRICES OF iPHONE 5 SERIES

iPhone 5S

(16 GB) Rs 53,000
(32 GB) Rs 62,500
(64 GB) Rs 71,500

iPhone 5C

(16 GB) 41,900
(32 GB) 53,500