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Hat tip to Angad for this article on Tech2.com. The news is also on Techtree.com and infotech.indiatimes.com.

The executive summary: 8GB for Rs 31,000 (about $730) and the 16GB will retail for Rs 36,000 to 37,000 (around $870). This is without factoring in the accompanying voice/data plans.

I don’t know how credible these numbers are, but I would not be surprised if they are accurate. Why?

• There are no subsidy models in India (or if there are, they don’t amount to much)
• There are no alternative revenue streams for mobile providers that could potentially offset a handset subsidy (VAS revenue-sharing is cream, not bread). Apple doesn’t give carriers a cut in the App Store/iTunes.
• High-end handsets launched by carriers have traditionally carried insane price tags.
• The most recent high-end launch by Airtel—the HTC Touch Diamond—retails for Rs 27,500.
• BlackBerry devices, despite requiring relatively expensive data plans, retail for a minimum of Rs 24,000.

From a brand/positioning standpoint, it would be unjust to price the iPhone 3G lower than the average BlackBerry or HTC handset. Vodafone and Airtel have painted themselves into a corner. I don’t anticipate big sales numbers—quite likely less than the erstwhile grey market for first-gen iPhones. My fervent prayer remains that I am all wrong about this, but I can’t think of another scenario, without forsaking logic.

Winner: Apple. Hustler: Carrier. Loser: User.