Reliance Communications & TATA Teleservices in talks to sell iPhone in India

[faiqg 0]

http://online.wsj.com/article/SB10001424052748703440004575547670261276394.html

Indian Firms in Talks to Sell iPhone

By ROMIT GUHA And R. JAI KRISHNA

MUMBAI—Two Indian telecom operators are in talks with Apple Inc. to launch an iPhone in India based on the code division multiple access technology in a bid to tap the growing smartphone market in one of the world's fastest-growing mobile markets, people familiar with the matter said.

The talks with Reliance Communications Ltd. and Tata Teleservices Ltd. --which offer mobile phone services based on CDMA technology--come soon after news that Apple is making a version of its iPhone that Verizon Wireless will sell early next year in the U.S. Verizon Wireless offers mobile phone services based on CDMA technology.

"Tata has been in talks with them [Apple] for four to five months now," said one person familiar with the negotiations.

"This [talks] has been going on as India is a big market for CDMA. It [any launch] should benefit both parties," the second person said.

It is unclear though when any launch may take place, these people said.

Anand Baskaran, an Apple spokesman for India, declined to comment.

Apple's iPhone is currently available in India through operators Bharti AirTel Ltd. and Vodafone Essar Ltd., a unit of Vodafone Group PLC, which offer services under the global system for mobile communications, or GSM, technology.

Launching a CDMA phone will give Apple access to more customers in the world's fastest growing telecom market, which is adding around 18 million users a month. The country currently has about 670 million wireless users, of which roughly 20% use CDMA phones. For the two local operators, offering a CDMA iPhone would help them battle shrinking revenues and margins due to intense competition. Currently, the cheapest iPhone in India costs more than $670 and is considered very expensive for a country where 42% of the population earns less than $1.25 a day.

Still, analysts say Apple may find it tough to generate significant revenue from a CDMA-based iPhone in India given that it is not as widely used as a GSM phone, and because there is stiff competition for smartphones from companies including Nokia Corp., Motorola Inc., HTC Corp., Samsung Electronics Co. and Research in Motion Inc.

Moreover, Google Inc. is pushing to become a significant player in India through little-known Indian handset makers that are poised to launch low-cost devices that include the tech giant's Android operating system in coming months.

"While the possibility of a CDMA iPhone through Reliance Communications or Tata would help Apple, it is unlikely to generate significant volumes in India," said Daryl Chiam, a senior analyst at research firm Canalys.

Apple accounted for less than 1% of the India's smartphone market share in the first half of 2010, said Mr. Chiam, adding that in contrast, Nokia shipped 1.8 million smartphones in India and accounted for 71% of the market in the same period.

However, India's smartphone market is expected to grow to 38 million units in 2014, representing a compound annual growth rate of more than 78% from 2009.

"Vendors who are keen to participate in this growth market must begin to invest in channel expansion and products for the country," said Mr. Chiam.

[Karthik R 246]

iPhone in CDMA will be just awesome! but will it be overpriced like its GSM counterparts?

[shashank 8]

I don think iPhone CDMA has any market in india! I don't think they can sell more than 100 units throughout the country(both operators combined).

[sougatadc 358]

^^^

How can you be so sure about the negativity? India is a huge country and its population is really big. Nowadays even less than 1% of our population can make a third class film earn back its investment. That is the enormity of our population. The biggies worldwide know this figures very well, that's why they are keen in investing here.

High-end handset users will surely buy CDMA Iphones, provided these will not be too costly.

Edited October 13, 2010 by sougatadc

[kesav 127]

I second it.

There's very huge market for CDMA Iphone in India.

Even 5% of Indian telecom market will overshawdow any other CDMA market in the world(except for USA).

[SUDYEcaZ 67]

Apple’s Prototype CDMA Verizon iPhone Photos Surfaced (Rumor)

Apple’s CDMA iPhone details we discussed in our earlier post and informed to you that it is under “AP” test phase. Now, some more photos claimed to be device are surfaced again and reported to be those are from a repair shop in Vietnam.

These photos were first informed through Richy Rich, if this is true, definitely things are shaping up fast and fine for the Verizon iPhone from Apple. Richy Rich informed that these photos were live shots “originated from repair shop in Vietnam”. Here, another important thing pretty hard to ignore is that the earlier leak about DVT stage was generated from Vietnamese forum in May.

In August John Gruber of Daring Fireball reported that a CDMA-variant of the iPhone 4, internally known as model N92, had reached Engineering Verification Test status, “one step below DVT”. One photo obtained by Richy Rich identifies the test unit as “N92DVT”

http://www.mwd.com/2010/10/apple%E2%80%99s-prototype-cdma-verizon-iphone-photos-surfaced-rumor/