[color=#000000][font=Times New Roman][size=medium]Airtel on Monday launched its Online Store where it is going to sell smartphones at attractive down payment options that include monthly [/size][size=small]instalments[/size][size=medium] that double up as postpaid plans. To start things off, the company has listed the i[/size][size=medium]Phone 7 and iPhone 7 Plus with the former being offered for as low as Rs 7,777[/size][size=medium] for the 32GB variant. Sounds like a great offer. Or does it? If you look into the fine-print, it’s not that cool. [/size][/font][/color]
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[color=#000000][size=medium][font=Times New Roman]Now, here’s what you need to know. In the case of the 32GB iPhone 7, customers will need to make a down payment of Rs 7,777 and then pay 24 monthly installments of Rs 2,499. The installments come with built-in postpaid plan that offers 30GB data, unlimited calling (local, STD, national roaming), and Airtel Secure package that covers the device against physical damage and cyber theft.[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]Similarly, the 128GB iPhone 7 can be availed at Rs 16,300, the 32GB iPhone 7 Plus for Rs 17,300, and the 128GB iPhone 7 Plus 26,000, all of which come with the Rs 2,499 monthly installment cum postpaid plan. But is Airtel’s offer really beneficial for consumers in the long run? Let’s take a look first at how much one will need to pay for each variant in totality by the end of two years.[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]But before we go into the details of it all, here is the TL:DR version: The Airtel offer is very similar to the on contract smartphone sales that telecoms in the US carry out. They too offer phones like the iPhone 7 and the Galaxy S8 at down-payment of $100 to $200 and then charge consumers a monthly fee for a specified period. This is exactly what Airtel is doing here. 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.[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]But this model has not worked in India until now. 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 7,777 it is the same. As you will see below, if you go for the iPhone 7 at Rs 7,777 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 10,000.[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]Now the details. [/font][/size][/color]
[color=#000000][font=Times New Roman]What you will need to pay by the end of 2 years via Airtel Online Store[/font][/color]
[color=#000000][size=medium][font=Times New Roman]iPhone 7 32GB[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]Rs 7,777 (down payment) + 24 x Rs 2,499 = Rs 67,753[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]iPhone 7 128GB[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]Rs 16,300 (down payment) + 24 x Rs 2,499 = Rs 76,276[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]iPhone 7 Plus 32GB[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]Rs 17,300 (down payment) + 24 x Rs 2,499 = Rs 77,276[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]iPhone 7 Plus 128GB[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]Rs 26,000 (down payment) + 24 x Rs 2,499 = Rs 85,976[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]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.[/font][/size][/color]
[color=#000000][font=Times New Roman]The alternative[/font][/color]
[color=#000000][size=medium][font=Times New Roman]There are a few things to consider when looking at Airtel’s offer. 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.[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]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 649. Similarly, it is offering 40GB of data for Rs 799 and 50GB data for Rs 999. [/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]These plans are much cheaper than the Rs 2,499 bundled offer on the Online Store.[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]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. You can find the 32GB iPhone 7 on e-commerce sites like Amazon India and Flipkart for as low as Rs 38,999 while the 128GB iPhone 7 Plus can be availed for Rs 63,999.[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]If you choose to go for the iPhone 7 and iPhone 7 Plus from these e-commerce sites, and consider Airtel’s standalone Rs 649 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.[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]iPhone 7 32GB[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]Rs 38,999 + 24 x Rs 649 = Rs 54,575[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]iPhone 7 128GB[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]Rs 49,999 + 24 x Rs 649 = Rs 65,575[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]iPhone 7 Plus 32GB[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]Rs 60,500 + 24 x Rs 649 = Rs 76,076[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]iPhone 7 Plus 128GB[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]Rs 63,999 + 24 x Rs 649 = Rs 79,575[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]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.[/font][/size][/color]
[color=#000000][size=medium][font=Times New Roman]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. These are perhaps a few things one will need to consider when deciding to go for Airtel’s new offer.[/font][/size][/color]
