iPhone Headed to India: Apple Negotiating CDMA Deals with Telecoms
Two Indian telecom operators, Reliance Communications Ltd. and Tata Teleservices Ltd., have been negotiating with Apple Inc. to launch an iPhone in India based on the code division multiple access technology.
“Tata has been in talks with them [Apple] for four to five months now,” said one person familiar with the negotiations. “This has been going on as India is a big market for CDMA. It should benefit both parties,” a second person added.
The two Indian companies, which offer CDMA technology, contacted Apple after the announcement of Apple’s iPhone for Verizon Wireless that is based on CDMA technology, which Verizon will launch early next year. The exact launching date was not disclosed. Apple Spokesman for India Anand Baskaran refused comment.
Considering that 42% of India’s population has an individual revenue of $1.25 per day, a $670 iPhone being the cheapest is still insanely expensive. Apple’s iPhone is available in India via operators like Bharti AirTel Ltd and Vodafon Essar Ltd. India currently has 670 million wireless users, with only less than 20% who uses CDMA phones, an opportunity for the two companies to battle declining returns due to tight competition.
The Indian market is big but Apple might still find difficult due to competitions with Motorola Inc., HTC Corp., Samsung Electroniucs Co and RIM Inc. The toughest is Nokia covering 71% of the market, with 1.8 million smartphones in a period. Apple’s market share is still small compared to others on a global scale, though the U.S. market has been kind to the company’s iOS. With recent moves from Android’s takeover, however, Apple will need to regain some control over its markets.
Right now, India’s ripe for the taking. The country’s infrastructure is welcoming for the technology sector, and the mobile market in particular is able to leverage its powerful smartphone advancements to power a new adoption surge. RIM is also anxious to make headway in India, having finally settled with the local government on message encryption and access for officials. Apple is also looking to compete with Android on a more direct level in the U.S., with plans to sell iPads at Target and Walmart.
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