Apple’s market shares drop drastically in India. iPhone sales expected to increase during the upcoming festive season.
Each year when Apple announces its new iPhone, the excitement of thousands of Apple fanatics globally is overwhelming. Similarly, India with its bulging population has seen a vogue of Apple products for nearly four years now. However, iPhone 7 does not seem to be evoking similar craze in India. iPhone sales are soon expected to rise. The new smartphone is proving to be a big challenge for Apple to sell in the country.
Apple’s share by value stands even lower than the Chinese brand OPPO. Recently the sales figures presented by a research firm called GFK show Apple constituting 6.3 in the Indian market. Samsung of course, was ones again dominating with 47% market share in India during the month of August. The sales data for Indian cities places Apple quite low as people begin preferring other phone brands.
Apple’s share in the Indian market has dropped to half from 4.6 percent in India’s top 30 cities that previously provided a great market for Apple products. The volume sales data from the past month for Apple when studied, show lousy results for the company. International Data Corp shows iPhone sales in the country have been low during June to August 2016 in major Indian cities. This year has been rough for Apple in India.
Why are the sales dropping?
One main reason behind the fall can be unaffordability. Apple iPhone 7 32GB version is slated to be priced at Rs 60,000, while the iPhone 7 Plus 256GB will come at Rs 92,000 in India. The starting prices make the new phone highly costly. Not only are iPhone sales in bad condition but also Apple’s market performance in above Rs. 20,000 price segment have worsened. Falling gradually to 35.6% from a good 52.3% in the previous quarter. No difference whatsoever was made by the launch of iPhone SE in April 2016.
According to Business-standard.com, Experts point out that value for money proposition among Indian buyers has prevailed over craze for owning an iPhone of late. Cuts in discretionary spending among a majority of consumers, which impacted all major consumer goods firms in the country, including food and beverage companies, have also played a role in this.
Falling iPhone sales in the Indian market during the first half of the year is quite common. The records go way back and find similar statistics. For last two years, Samsung is the brand that leads the period with market shares above 55% after its flagship launches. The brand immediately gains immense popularity. However, that did not happen this time. What happened was:
Apple launched iPhone SE in the beginning of 2016 and stood as a rival to Samsung’s premium Galaxy S7, which had launched recently as well. The iPhone SE, with all the features of iPhone 6S in it, was expected to be launched in India on a lower prince than it originally did, at 40,000 INR. Therefore, it did not gross much in the Indian market.
Apple had to face severe competition from Chinese brands, including Vivo and OPPO. Research firms worldwide suggest different results regarding OPPO’s sale in the Indian smartphone market. GFK suggests it to be the second most sold smartphone brand in the country during the month of August. Whereas, Counterpoint Technology Research labels OPPO as the third most sold brand. that is in terms of brand value. However, Apple remains stuck at the sixth spot with less market share than both Samsung and OPPO this year.
However, the dropping iPhone sales are highly expected to rise in future with festive season approaching in the coming month. Not necessarily talking about iPhone 7, as the sale of Apple’s previous iPhone models including iPhone 6 and iPhone 6S will definitely rise due to fall in the selling price as the new smartphone has now arrived. Future may or may not be bright for Apple in India.