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High iPhone prices may queer the pitch for Apple

August 21, 2008

It is believed that more than 1.3 million, or about a quarter of the first-generation iPhones sold, have been 'unlocked' - i.e., altered to run on networks other than those chosen exclusively by Apple.

India is estimated to have a significant share of 'unlocked' iPhones. A High iPhone prices may queer the pitch for Apple, note analysts.

"It will be interesting to see at what price the Apple iPhone launches in India. If priced competitively, it could garner a significant market share in the smartphone segment. Given its performance abroad, we believe it will generate a good response," says Gupta.

The experience from some other markets also suggests that the entry of the iPhone has had a benign effect by increasing market awareness for the smartphone category, suggests Alok Shende, principal analyst, Accendia Consulting.

"This, together with increased competition, has not only benefitted iPhone sales, but also that of its nearest competitors," he says.

Image: A model shows a 3G iPhone during its launch and sale in Hong Kong on July 11, 2008. iPhone will be launched in India on August 22. | Photograph: Andrew Ross/AFP/Getty Images.

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