Monday, August 25, 2008

"Possession diminishes perception of value, immediately"


It’s finally here on 22nd August; Hype now has given way to some reality check for AirTel and Vodafone who were surprised on the consumer frenzy which was matching to iPhone’s worldwide release and surprisingly immediate signs of withdrawal….. Seems like Midas’s law working ….”Possession diminishes perception of value, immediately”

As the dust settles, market gurus are searching for answers of evident consumer withdrawal much to the delight of Nokia. Though analysts are pouring on daily basis on iPhone 3G phenomenon in India, to my mind three things are clear

Price Points : Though there are many compelling arguments; Rs 36000 (817 USD) price point for 16GB iPhone is a bit higher. Cost of ownership is not compelling to the user. Consumer, I think, is looking for cost restructure, similar to what Microsoft has done to Xbox in India, reducing the price points considerably in a span of one year.

Business models : As always, in India, innovative business models are the key. Vodafone/ AirTel, i think, are quickly reacting to the loosing consumer interest. Vodafone is announcing installment scheme to buy a iPhone and AirTel is bundling free data packages

Infrastructure : We do not have 3G networks. iPhone’s heart is 3G. AirTEL & Vodafone’s vehement appeals that we will have the 3G services in next 6 months, is not getting a buy in from the customers. Though it’s early to conclude, it appears that consumer wants to see 3G networks up and running and is willing to wait and postpone the buying decision.


….Finally, Guys, some one tell me how the navigation works on your iPhone 3G