Apple sees decline in Indian market
Posted on: 06/Aug/2016 11:09:07 AM
Strategy Analysis, a research firm based in the US has reported that Apple’s stand in India is not as strong as it was last year. This is clearly observed from the dip in sales of Apple smartphones which in turn is true with the reduction in shipments made across the country.
This report also clearly states that Apple finds a steep decline in India which is its third largest smartphone market across the world. On the other hand, there is staggering rise in sales of Android smartphones with 97 percent market share observed during the second quarter of 2016.
The director of Strategy Analytics, Woody Oh said Apple’s iOS has been through 35 percent decline every year. During the second quarter of 2016, 0.8 million smartphones were shipped.
To attract more customers and strengthen its stand in India, Apple iOS has to be reduced in price and seek more subsidies. Widening of its retail presence across all online and Apple stores will help in re-growing.
Cheaper availability of Android devices accounts to such decline in sales of Apple smartphones. Gartner, an American research and advisory firm estimates sale of 139 million smartphones in India in 2016, and the annual growth is expected to be 29.5 percent.
These phones would all cost lesser than $70 which is lesser than cheapest Apple phones by 4 times. The smartphone maker should either reduce the price in the Indian market or come forward to make cheaper smartphones. Sadly, the company plans neither of these.
If Apple launches such cheap priced smartphones in the Indian market, the maker will also be bound to produce and sell out in the same way in foreign markets like Brazil where the normal price of these Apple phones are way too higher.
There were plans to sell refurbished iPhones, but due to very strong criticism thrown on this, the plan had to get dropped.
The CEO of Apple Tim Cook shared his views during his visit to India stating that they experience difficulty in selling their products due to resistive tax ambiguities. This scenario can be coped with by introducing Cupertino-based local manufacturing plant set up in the country. The idea of Apple is however still unclear, but the potential Indian market for Apple sales is very clear.
If Apple doesn’t make sturdy strategies exclusively for the Indian market, the brand may further get sunk with its sales.
