Cheaper: The 3G iPhone that's available in the grey market

For those disheartened by the steep price of the 3G iPhone Rs 31,000 for the 8GB version and Rs 36,100 for the 16GB one, the grey market, as usual, offers the solution. Grey market dealers are not only offering the handsets at a lower price, but they are also promising to make them compatible with any service provider.

A dealer from Matunga is ready to deliver a hacked handset within two days for just Rs 27,000. When this reporter, posing as a prospective buyer, enquired if it could be used with any network, the dealer promptly replied, "Don't worry. Just like the previous version, the hacked 3G iPhone handset too can be used with all networks."

Other option

Meanwhile, some dealers in Heera Panna, Manish Market and other grey market stores have found another solution. They are advising customers to procure the phone from the US and offering to crack it for Rs 5,000.

As the iPhone costs only Rs 8,000 in the US, the total cost for the customer will then be just Rs 13,000.

This option naturally has interested many. "I have been saving money for the iPhone launch in India. But due to the high price, I have asked my cousin to get it from the US. I will get it unlocked here," said a marketing executive with a television channel.

Even though the grey market is sure to eat into their business significantly, Airtel and Vodafone the official partners of Apple in India say they can do little to stop it. K Srinivas, executive director, Bharti Airtel, told MiD DAY, "The user will not be able to optimally use the phone when the code is cracked, as they will face problems in using premium services like iTunes." Vodafone refused to comment.

China ka maal

The duplicate China-made handsets, which have flooded the Indian market, are a cheaper option for those who cannot afford to pay Rs 31,000 for the 3G iPhones. The China-made iPhone (old version) costs anywhere between Rs 5,000 and Rs 7,000 in the grey market.

While dealers say the original phone still dominates the market, they cannot disagree that people are exploring cheaper options to maintain their style statement.

"The features in both handsets are the same. Even the look is identical, but nothing can compete with the original," said a dealer from Heera Panna. He added that the China-made handset is of use-and-throw quality. 

"People who could not afford Rs 25,000 for iPhone 2.0 preferred the duplicate. However, the original handset is in demand," said a shopkeeper at Manish Market.