It is charging consumers a down-payment that is fraction of the full price. And then it is asking consumers to pay a certain amount per month that also includes the charges for cellular services like data and the calls. But this model has not worked in India until now.
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The reason is that it is kind loaded against the consumers. By the time their contract with a telecom company expires they end up paying more than what they would otherwise pay for a phone and telecom services. At the same time they also end up losing flexibility of choosing the telecom operator. In the current case of the iPhone 7 and the Airtel offer of Rs 7, it is the same.
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As you will see below, if you go for the iPhone 7 at Rs 7, from Airtel Online store you will end up paying significantly more compared to how much you will pay if you buy the phone from the open market and then subscribe to an Airtel plan. In fact, the difference is significant at over Rs 10, The above is the cumulative amount for each of the iPhone 7 and iPhone 7 Plus variants you will need to pay by the end of two years if you choose to buy it from the Airtel Online Store.
As the company says, this not only includes the price of the phone but also monthly data benefits of 30GB and unlimited calling for 24 months. There are a few things to consider when looking at Airtel's offer.
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For one, the plan is largely for those who are interested in 30GB of monthly data with unlimited calling. For a majority of users out there, the tariff is just too high. Ever since the entry of Reliance Jio last year, the telecom sector has seen a major tariff war with telecos offering more data at much cheaper prices. But here's where it gets interesting, Airtel recently changed its postpaid tariffs and is currently offering 30GB data with unlimited calling only for Rs These plans are much cheaper than the Rs 2, bundled offer on the Online Store.
Secondly, with the launch of the iPhone 8 and iPhone 8 Plus, prices for last year's iPhone 7 and iPhone 7 Plus models have gone down. If you choose to go for the iPhone 7 and iPhone 7 Plus from these e-commerce sites, and consider Airtel's standalone Rs postpaid plan for a period of 24 months, for example, you effectively pay much less than what the Airtel Online Store is offering.
Let's take a look.
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As you can compare, going for the iPhone 7 or iPhone 7 Plus and the Airtel 30GB postpaid plan individually will effectively cost you much less after 2 years than what you will need to pay if you purchase through Airtel's Online Store. On the other hand, with Airtel's offer on the Online Store, customers will only have to make the down payment amount and then pay the rest spread over a course of 24 months, whereas those looking to purchase the iPhone 7 or iPhone 7 Plus from e-commerce websites will likely have to pay the whole amount all at once. Change your plan anytime.
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