After hitting search engines with most number of searches, iPhone has now entered the Israeli market. Israeli carriers finally agreed to purchase 300,000 iPhone each year for coming three years. The deal was finally confirmed after negotiating for its price. The major portion of the Israeli market is dominated by budget phones pricing from 100 USD to 300 USD. Around 80% percent of the market share is captured by the cell phones costing less than 300$.

According to a research conducted by Zap.co.il only 25% of Israelis expressed their interest to buy an iphone. The current market price of an iphone in the United States is 399 USD but it costs around 750 USD in Israel. 750 USD makes around 2600 NIS. Let’s see how Israeli market is going to react with plethora of iPhone’s price. Israelis are not willing to pay more than 200$ and it would be interesting to know that;

• Will the carriers subsidize?
• Will the Israelis change their pattern to buy 700 USD iPhone.

If all the iPhones gets sold out in 2010 then Apple would succeed in acquiring 10% of the market share with volume of over 50% of money. If this three year deal works well then not only Apple will become the market leader of Israel but the Holy land will become a global leader in iPhone adoption and thus it will turn out to be the iPhone land.