Showing posts with label iPhone 3G. Show all posts
Showing posts with label iPhone 3G. Show all posts
Tuesday, June 12, 2012
iPhone Hobbled by High Prices in Japan, Lack of 3G in India
Apple's iPhone may be giving competitors a run for their money in North America but when it comes to three of the biggest telecom markets in Asia — Japan, India and China — the company seems to be coming up lame.
The latest sales figures suggest the Jesus phone is struggling to find new converts in Japan. Not far away in India (the second largest telecom market after China) sales of the device are also lackluster thanks to prices that are pushing seven Benjamins for the entry level 8-GB version. And Apple has yet to finalize a deal with Chinese telecom carrier, China Mobile, to bring the iPhone to the People’s Republic.
A combination of high pricing and a marketing strategy that fails to take into account the needs of local markets has left Apple selling just a few hundred thousand units in countries where millions of other phones are sold every month.
Take India, one of Asia's fastest-growing telecom markets. Between 2006 and 2007, sales of smartphones within the nation grew an estimated 31.4 percent. The data-centric convergence device segment exploded at 89 percent, while voice-centric devices shot up by 26.3 percent. As of July 2008, the Telecom Regulatory Authority of India reported total wireless subscribers of about 296 million. About 9.2 million subscribers were added in July alone.
Nokia is the market leader in India but other players like Research In Motion (makers of Ur-smartphone BlackBerry), HTC and Sony Ericsson are gaining traction. But not Apple.
It isn't for lack of interest in the iPhone, says Naveen Mishra, an analyst at IDC India.
Apple's brand and the iPhone's design have captivated Indian consumers but the high cost of the device and the lack of a nationwide 3G network has kept away users from buying the phone.
"The iPhone has a large fan following," says Mishra, "but when it comes to buying the device not a lot of people want to spend that kind of money."
Apple CEO Steve Jobs introduced the 3G iPhone with the promise of $199 price tag at which it retails in the United States along with a two-year contract with the service provider.
But in India the device has been priced much higher at 31,000 Rupees ($673) for the 8-GB version and 36,100 Rupees ($785) for the 16-GB model.
The reason for the higher cost? Wireless customers in India flat out refuse to sign legally binding mobile phone contracts. Because they’re not obligated to stick with a service provider, handsets on the subcontinent are always full priced, never subsidized.
The iPhone's limited availability through a contract with just two mobile service operators has cramped sales, says Mishra.
Unlike the United States, India's telecom market is skewed in favor of prepaid users, who comprise at least 70 percent of total cellphone users in the country.
Most cellphone users in India buy their handsets from a retail store and activate it with the carrier of their choice; cellphones are generally sold unlocked.
The iPhone is the exception. It is currently available only on Airtel and Vodafone leaving potential iPhone buyers with limited options. India does not offer number portability and switching carriers means existing users could lose their phone number as they move to a new carrier.
India also does not have the 3G … yet. Analysts expect the first 3G networks in the country to be available mid-2009.
For the iPhone in India, sales are unlikely to pick up unless the service providers slash the price of the device, make it available through retail stores and launch their 3G network, says Mishra.
"There's going to be very limited uptake for the device unless the carriers do one or all of these things," says Mishra.
Despite weak sales, it is unlikely Apple will push for significant price cuts in the country, say analysts. "Apple throughout its family is willing to forgo large market share for profitable market share," says Ezra Gottheil, an analyst with Technology Business Research.
Meanwhile in Japan, Apple has partnered with Softbank, Japan's third-largest mobile service provider to sell the iPhone 3G. After the initial buzz, demand for the iPhone has fallen to a third of what it was as users cringe at the high cost of ownership for the phone and the unavailability of some features, says a report in The Wall Street Journal.
As for China, despite speculation, Apple seems no closer to signing a deal with China Mobile to offer the iPhone 3G in the market.
For Apple, it may be time to take a closer look at its business in Asia. Unless the company can move swiftly to change its strategy, it may find itself locked out of the largest telecom markets of the world.
The latest sales figures suggest the Jesus phone is struggling to find new converts in Japan. Not far away in India (the second largest telecom market after China) sales of the device are also lackluster thanks to prices that are pushing seven Benjamins for the entry level 8-GB version. And Apple has yet to finalize a deal with Chinese telecom carrier, China Mobile, to bring the iPhone to the People’s Republic.
A combination of high pricing and a marketing strategy that fails to take into account the needs of local markets has left Apple selling just a few hundred thousand units in countries where millions of other phones are sold every month.
Take India, one of Asia's fastest-growing telecom markets. Between 2006 and 2007, sales of smartphones within the nation grew an estimated 31.4 percent. The data-centric convergence device segment exploded at 89 percent, while voice-centric devices shot up by 26.3 percent. As of July 2008, the Telecom Regulatory Authority of India reported total wireless subscribers of about 296 million. About 9.2 million subscribers were added in July alone.
Nokia is the market leader in India but other players like Research In Motion (makers of Ur-smartphone BlackBerry), HTC and Sony Ericsson are gaining traction. But not Apple.
It isn't for lack of interest in the iPhone, says Naveen Mishra, an analyst at IDC India.
Apple's brand and the iPhone's design have captivated Indian consumers but the high cost of the device and the lack of a nationwide 3G network has kept away users from buying the phone.
"The iPhone has a large fan following," says Mishra, "but when it comes to buying the device not a lot of people want to spend that kind of money."
Apple CEO Steve Jobs introduced the 3G iPhone with the promise of $199 price tag at which it retails in the United States along with a two-year contract with the service provider.
But in India the device has been priced much higher at 31,000 Rupees ($673) for the 8-GB version and 36,100 Rupees ($785) for the 16-GB model.
The reason for the higher cost? Wireless customers in India flat out refuse to sign legally binding mobile phone contracts. Because they’re not obligated to stick with a service provider, handsets on the subcontinent are always full priced, never subsidized.
The iPhone's limited availability through a contract with just two mobile service operators has cramped sales, says Mishra.
Unlike the United States, India's telecom market is skewed in favor of prepaid users, who comprise at least 70 percent of total cellphone users in the country.
Most cellphone users in India buy their handsets from a retail store and activate it with the carrier of their choice; cellphones are generally sold unlocked.
The iPhone is the exception. It is currently available only on Airtel and Vodafone leaving potential iPhone buyers with limited options. India does not offer number portability and switching carriers means existing users could lose their phone number as they move to a new carrier.
India also does not have the 3G … yet. Analysts expect the first 3G networks in the country to be available mid-2009.
For the iPhone in India, sales are unlikely to pick up unless the service providers slash the price of the device, make it available through retail stores and launch their 3G network, says Mishra.
"There's going to be very limited uptake for the device unless the carriers do one or all of these things," says Mishra.
Despite weak sales, it is unlikely Apple will push for significant price cuts in the country, say analysts. "Apple throughout its family is willing to forgo large market share for profitable market share," says Ezra Gottheil, an analyst with Technology Business Research.
Meanwhile in Japan, Apple has partnered with Softbank, Japan's third-largest mobile service provider to sell the iPhone 3G. After the initial buzz, demand for the iPhone has fallen to a third of what it was as users cringe at the high cost of ownership for the phone and the unavailability of some features, says a report in The Wall Street Journal.
As for China, despite speculation, Apple seems no closer to signing a deal with China Mobile to offer the iPhone 3G in the market.
For Apple, it may be time to take a closer look at its business in Asia. Unless the company can move swiftly to change its strategy, it may find itself locked out of the largest telecom markets of the world.
Thursday, April 26, 2012
iPhone Pushes Mobile Gaming To $5.4 Billion
Apple's smartphone is leading the pack, as developers and mobile gamers are attracted to the App Store and its business model, according to one research firm.
Mobile gaming was once simple games like "Snake" that were meant to kill time, but the market is rapidly becoming a lucrative business. Thanks to smartphones like Apple's iPhone 3G, mobile gaming rose 20% and hit $5.4 billion in 2008, according to a new report from JupiterResearch.
The report said overall game downloads were flat in the U.S. and Western European markets, but volumes rose in developing markets like India and China. While Java-based games saw a steep decline, those volumes were offset by a sharp increase of iPhone game downloads.
"The combination of iPhone and the Apple App Store has galvanized the mobile games industry," said report author Dr. Windsor Holden in a statement.
"Apple has provided an innovative device which enables developers to create smooth, compelling, visually attractive games for the mobile users, together with a business model offering a highly competitive revenue share for developers."
The touch input, robust hardware, and graphics capabilities have given the iPhone an advantage over its rivals on the mobile gaming front. Users of the iPhone also download apps at a higher rate than other phone users, and the platform has drawn high-profile developers like Electronic Arts and Sega.
One of the advantages the iPhone has over its competitors is the tight integration of the App Store. This makes browsing, buying, downloading, and installing games over the air easier than on most rival platforms. Additionally, users with an iTunes account already have a credit card on file, which makes buying games easier than on other platforms. For example, Google's Android Market uses Google Checkout, and Research In Motion will use PayPal for its BlackBerry App World.
The report also said that more than half of games downloaded by 2012 will be funded by advertising. This could drive additional business opportunities for the likes of Medialets, which has a rich media ad platform for iPhone apps.
Read more »
Mobile gaming was once simple games like "Snake" that were meant to kill time, but the market is rapidly becoming a lucrative business. Thanks to smartphones like Apple's iPhone 3G, mobile gaming rose 20% and hit $5.4 billion in 2008, according to a new report from JupiterResearch.
The report said overall game downloads were flat in the U.S. and Western European markets, but volumes rose in developing markets like India and China. While Java-based games saw a steep decline, those volumes were offset by a sharp increase of iPhone game downloads.
"The combination of iPhone and the Apple App Store has galvanized the mobile games industry," said report author Dr. Windsor Holden in a statement.
"Apple has provided an innovative device which enables developers to create smooth, compelling, visually attractive games for the mobile users, together with a business model offering a highly competitive revenue share for developers."
The touch input, robust hardware, and graphics capabilities have given the iPhone an advantage over its rivals on the mobile gaming front. Users of the iPhone also download apps at a higher rate than other phone users, and the platform has drawn high-profile developers like Electronic Arts and Sega.
One of the advantages the iPhone has over its competitors is the tight integration of the App Store. This makes browsing, buying, downloading, and installing games over the air easier than on most rival platforms. Additionally, users with an iTunes account already have a credit card on file, which makes buying games easier than on other platforms. For example, Google's Android Market uses Google Checkout, and Research In Motion will use PayPal for its BlackBerry App World.
The report also said that more than half of games downloaded by 2012 will be funded by advertising. This could drive additional business opportunities for the likes of Medialets, which has a rich media ad platform for iPhone apps.
Wednesday, April 25, 2012
iPhone Launched in Thailand with Poor 3G Network
The iPhone 3G has arrived in Thailand with the mobile operator True Move. According to the website iPhones Talk, Apple reportedly negotiated for some time to get the phone into the country. Despite its potential appeal in the Thai market, there is speculation surrounding how many Thai users will be able to take full advantage of the iPhone 3G's rich features due to spotty 3G coverage and lack of education about the phone's advantages, in addition to the lack of heavy data related usage there.
Given its price tag, another question arises: Does the iPhone make sense for consumers and operators in countries where voice calls dominate mobile use, and data/Wi-Fi usage isn't very high?
Due to a decision made by leading Thai mobile operators last year the country has scaled down their investment on 3G network upgrades, which could result in a large group of iPhone users without a fast, native network on which to use their gadget. According to Reuters India, however, True Move expects to launch 3G mobile services in Bangkok this coming April.
Read more »
Given its price tag, another question arises: Does the iPhone make sense for consumers and operators in countries where voice calls dominate mobile use, and data/Wi-Fi usage isn't very high?
Due to a decision made by leading Thai mobile operators last year the country has scaled down their investment on 3G network upgrades, which could result in a large group of iPhone users without a fast, native network on which to use their gadget. According to Reuters India, however, True Move expects to launch 3G mobile services in Bangkok this coming April.
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