IPhone7 for 19,990/-

Apple released iPhone 7 starts at Rs 60,000 for the 32GB base variant while the iPhone 7 Plus's 32GB model has been priced at Rs 72,000 in India on all online retails as well bundled with various bank and exchange offers.

Airtel announced "IPhone7 for Life" plan after the launch of iPhone7 in market.Airtel has teamed up with Bajaj Finance Limited (BFL) to offer iPhones at an initial down payment of Rs 19,990 (for the 32GB base variant). After the down payment, you are required to select one of Airtel postpaid plans, starting from Rs 1,999 (plus tax = Rs 2,300), that has 5GB of data and unlimited calling.

To be eligible for the offer you must be eligible for loan which needs you to produce your 2 months' salary slip. You also signup for Electronic Clearance Service, wherein you authorize BFL to deduct money from your account as per the plan.

Then, you are an Airtel customer and stick to the adopted plan for 12 months. After that period, you can exchange your current iPhone with the latest one from the store you purchased it. But what if you don't want to? What if you would rather want to keep it?

To opt out after 12 months, you need to pay BFL what it calls the "balloon payment" of Rs 24,000 for the base variant and more for others. The total amount paid after a year - Rs 19,990 + Rs 27,600 + Rs 24,000 = Rs 71,590.

If you plan to opt out any time before the 12 month period, you need to close the loan from BFL with foreclosure charges and own the device.

Here is a table showing all iPhone models available under the scheme:

1.    The down payment and a swollen "balloon payment"

Why doesn't it make sense?

Comparing with contract iPhones available in other countries, you will find that it doesn't generally include a down payment. But even in the west, this practice is despised by users as the phone turns out to be much costlier in the long run. After one or two year of contract, your iPhone still holds a high resale value, which doesn't hurt much if you traded it with a new one. But contracts don't take that into account.

Even after a monthly payment, you would be required to pay a balloon payment, that makes the phone at least Rs 11,590 costlier, if compared to MRP and as much as Rs 21,590 if online discounts are clubbed in.

2.    The pricey tariff plans

Airtel's infinity postpaid plans start from Rs 199 and go as high as Rs 1,599. But the company has bundled some of the costliest tariffs with the iPhone 7 offer. 5GB data in the Rs 1,999 plan doesn't seem to be as competitive, now that other companies have slashed their data rates after Jio launch.

Moreover, you might not need 5GB data if you have Wi-Fi at your home/office. For WhatsApp and casual browsing, including YouTube, 2GB of mobile data is quite a task to finish up on a mobile phone. But the plan warrants 5GB data, which is not enough if you do away with your home Wi-Fi connection but so much more than plenty if you don't.

3.    The physical damage dilemma

If the Phone is damaged, destroyed or lost during the Plan Period, you will still need to pay according to the "Plan tariff for the rest of the Plan Period".

For Airtel to issue a new iPhone after 1 year of contract period, your device should have no physical damage, liquid damage (Apple doesn't guarantee water proofing of the device and doesn't provide warranty for water damage). Airtel considers an iPhone with "cracked screen/casings, scratches, chips and dents, paint peeling, liquid damage, LCD damage/bleeding and/or swollen battery" as damaged. And that won't be replaced with the new iPhone.

For faults covered under warranty you can get the device serviced for any issues under the warranty terms. And chances for defaulting on this are low as Apple has a wonderful customer service.

Still, as per Airtel terms, in case any from below list is true, the device won't be accepted for exchange and balloon payment will be deducted from your account

-- Device is one with heavy wear and tear.
-- Device is significantly damaged (cracked screen/casings, scratches, chips and dents, paint peeling, liquid damage, LCD damage/bleeding and/or swollen battery).
-- Device not accompanied by its battery.
-- Device has missing parts.
-- Device has non-standard OEM parts.
-- Device is not functional (not capable of turning on/off, buttons are not fully functional, cannot make/receive calls and/or cannot connect to the Internet).
-- Device has or has had liquid damage.
-- Device has LCD damage/bleeding.
-- Device has swollen battery.
-- Device has missing parts.
-- Device has non-standard OEM parts.
-- Device is locked.

4.    There are restrictions to your connection

You are bound to keep one of the three tariff plans as per the offer and five other restrictions that apply to your connection- 

-- Apply for Mobile Number Portability
-- Opt out of the Airtel network
-- Give a transfer of ownership request
-- Request for safe custody
-- Migrate from postpaid to prepaid

A contract scheme is what you might have been waiting for to get hold of the new iPhone, and Airtel's iPhone for life plan might fit that dream. You are assured a new iPhone every year while you pay your monthly telephone bills. But at the end of the day, after all the exorbitant tariffs you have been paying you still don't own that iPhone.