Tuesday, July 7, 2009

Apple doesn't care about India; Vodafone can't help

I blogged earlier about how Vodafone had frittered away the iPhone opportunity in India; my latest experience has confirmed that hypothesis and also the fact that India doesn't really matter to Apple.

Unlike in most other markets, the iPhone is not subsidized in India. Customers have been paying upwards of Rs 30000 (almost $700 when it was launched last year) for the device. Yet, Apple takes no responsibility for the customers: it's popular AppleCare for iPhone extended warranty is not available here. In addition, it's service centers don't support iPhone problems, even when they are hardware or software (Apple related) issues.

What Apple does not realize is that Indian mobile operators have limited technical support capabilities because mobile phones are 99% bought directly from phone stores. Even where the carriers do provide handset-related support, it is usually low end / tier-1 (e.g. battery / accessory replacement); the handset manufacturers have their own service networks that cater to major technical issues.

This is bad news for iPhone users because most Vodafone Stores have no knowledge of the phone at all (the guy I spoke to this evening was wondering if he could replace the battery since it was not charging!). I was directed to their main Store some 10km away… It turned out eventually that there was nothing wrong with the handset -- both my USB connectors had stopped working on the same day! The first Vodafone Store, if only they had done a basic troubleshooting, could have solved my problem in 2 minutes; I ended up wasting an hour in peak-hour traffic.

I believe that the mobile operators and device makers are so busy chasing the 5mn new adds every month at the bottom of the pyramid that they have forgotten how to cater to other segments. While there is a lot to be proud about the success of the Indian low-cost business
model, I wish we would not end up gravitating to the lowest common denominator but actually move the users up the value chain of devices, applications and services. But today, I could not count on Apple or Vodafone in India.

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