Magic happens for Apple in India ahead of 2020.
NEW DELHI: In January this year, Apple CEO Tim Cook cited several reasons why iPhone earnings weren’t picking up in the emerging markets including in India — customers holding on for their older iPhones a little longer, feeble macro-economic states, foreign exchange and battery trade programmes. The Cupertino-based technology giant is quickly selling virtually all goods — iPhones, Apple Watch, Mac desktops and AirPods Guru — apart from an increasing Apple TV neighborhood in India. The expansion is coming despite how economic downturn has crippled several businesses and individuals have not suddenly discovered more money to spend on top smartphones and other devices.
The reason lies at a better comprehension of a market which needs mind games and customer strategies, not seen in other smartphone lands. According to industry experts, fuelled by appealing price drops on past generation iPhone models especially iPhone XR, 7 and 8, Apple has been able to pen a new India growth story.
“Collectively, these (iPhone XR, 7 and 8) accounted for more than 70 percent of shipments for Apple in the third quarter (July-September period) of 2019. A bigger impact was created by sales festivals such as No-cost EMI with cash backs online cards, buybacks and affordability schemes.
“The opening quarter imports for the new iPhone 11/Pro series has had a fantastic reception, jointly accounting for 23 percent of Apple shipments in 3Q19,” Joshi informed. Apple topped the smartphone segment by garnering a huge 51.3% share from the $35,000 and over price segment in the third quarter.
Not just iPhones, Apple Watch is witnessing a excellent adoption among its Indian fans.
According to Joshi, Series 5 watch that is basically an upgrade to the Series 4 at a similar price point will see larger traction in the forthcoming quarters, as Apple phases out the Series 4.
“The previous generation version continues to drive majority volumes with an attractive price fall on Series 3 GPS (currently starting at $20,900) during the joyous quarter. Apple has positioned the Watch show on awareness and health which has resulted in its uptake in India. Joshi said that the well-planned positioning with Series 3 at the entry level and Series 5 in the premium section would lure Apple enthusiast to change to either of the two according to usage and demand.
Another item category — Mac laptops — helped Apple register record growth in the India market in the period. For Cook, India was a really important market from the long term and following on his list are retail stores and local manufacturing of high-end smartphones. Things have started moving on this front — iPhone XR is being fabricated at Apple supplier Foxconn’s centre in Sriperumbudur, Chennai and iPhone 7 and 6S being assembled at provider Wistron’s facility in Bengaluru.
For the coming quarters,” Joshi said, Apple should continue to focus more on the $700-$850 ( $50,000- $61,000) segment, as that is the sweet spot for iPhones in India with additional attractive offers for making the new version lineup a little more affordable, however, continuing to focus on older production portfolio for volume development. Apple knows this well and also to attract more aspirational Indians into its ecosystem in 2020, it’s ready with a competitive market approach, while continuing with cost drops and attractive offers.