Apple is not doing so great in India, it is reported. CEO Tim Cook describes the country as one of the fastest growing markets, but iPhone sales are not doing so peachy.
Data from Strategy Analytics shows how Apple shipped some 800,000 smartphones in the second quarter of this year, which is a significant drop from last year’s performance. In the second quarter of 2015, the company shipped about 1.2 million iPhone to the third largest smartphone market. Quite a decrease considering how much effort Apple is putting into getting their devices out there.
According to Gartner, India should buy around 139 million smartphones this year, costing no more than $159. However, Android is currently capturing 97 percent of the market, and it would be hard for Apple to find its way around it.
Why? Because price matters. India is indeed one of the fastest growing markets in the world, but it is still a fact that the average selling price for smartphones is just below $70. Apple is not an affordable brand. The cheapest iPhone is more than four times the money. India is not yet ready to invest such large amounts of money in handsets, and Apple has to find an appropriate solution.
The most logical solution would be the manufacturing of a cheap iPhone, but there’s no telling how much profit Apple could make in this instance. Another option would be to sell refurbished phones. However, the government does not allow for such an action.
Despite these issues, iPhone does have a high appeal to the Indian market. In a report from May this year, it was said that Apple was battling Samsung in the premium sector. In the first quarter of this year, Apple’s handsets priced at over $300 grew in sales from 11 percent to 29 percent. As for Samsung, their share of sales fell from 66 percent to about 41 percent. This means that there is still hope for Apple to make its way as the OS of choice in India, but it’s going to be a bumpy ride.
Apple is not doing so great in India at the moment, but they’re determined to make it work. “We’re not here for a quarter, or two quarters, or the next year, or the next year,” said CEO Tim Cook to the local TV channel NDTV.