Apple aims to double retail footprint, iPhone sales in India with help of new distribution deals

Posted:
in iPhone edited June 2015
Apple has signed a deal with a fifth Indian smartphone distributor, Optiemus Group, as part of a campaign to more than double retail reach and hence double iPhone sales in each of the next three years, a report said on Monday.




Optiemus will become Apple's fifth iPhone distributor in India, and plans are already underway for more, three industry executives told the Times of India. The four existing distributors include Redington, Ingram Micro, Rashi Peripherals, and Brightstar.

Apple has reportedly given Optiemus the task of getting the iPhone into more neighborhood cellphone stores, a staple of India.

The Times said that Apple is aiming for 2 million iPhones in India during the 2015 fiscal year, which ends in September. The company sold 1 million in all of the prior year, but is noted to have already hit the 1 million mark for 2015 by April 30.

In terms of volume the iPhone has a marginal presence in India, with a 2 percent share, versus chief rival Samsung's 28 percent. During the April quarter Samsung also overtook Apple as the leader in the market of phones costing over 30,000 rupees ($468).

The iPhone's weak performance in India has been blamed partly on the high cost of the device but also on its rare presence in small shops. In other countries, Apple often prefers to sell the iPhone in national chains or its own stores.

Comments

  • Reply 1 of 14
    SpamSandwichSpamSandwich Posts: 33,407member
    Apple won't make a cheap junk phone just to gain market share.
  • Reply 2 of 14
    anantksundaramanantksundaram Posts: 20,404member
    Quote:

    Originally Posted by AppleInsider View Post



    The iPhone's weak performance in India has been blamed partly on the high cost of the device ...

    Nonsense. It's the taxes and the local distributor markups.

  • Reply 3 of 14

    Why did you guys use a pic of a knockoff phone?

  • Reply 4 of 14
    tokyojimutokyojimu Posts: 529member
    India does not allow foreign companies to operate stores. There are Samsung stores everywhere in India, apparently operated by local firms. Apple wouldn't allow this and so has a much smaller presence.
  • Reply 5 of 14

    Buying a SIM Card let alone a phone in India is like an extended visit to the Dentists. Long and expensive.

    Since the Mumbai Terrorist bombings getting phones is an ordeal even for locals. If you are in another state you can't just buy a phone or SIM Card. You need a local to vouch for you. You also need several different forms of ID and a passport photo. Getting a 'burner' phone or Sim Card is just not done.

     

    When I mentioned to my colleagues in Chennai that there are SIM Cards on sale in a vending machine at Heathrow Airport they just shake their head in bewilderment.

    Changing phones is a long and tortuous job. All my colleagues have phones that are at least 18 months old. They won't change them until their current device breaks. These are all well paid IT (by Indian Standards) guys. Changing a phone on a whim for the latest bit of bling is not on their radar.

  • Reply 6 of 14
    chadbagchadbag Posts: 2,000member
    Quote:

    Originally Posted by TheWhiteFalcon View Post

     

    Why did you guys use a pic of a knockoff phone?




    Is it a knock off or a non functioning demo?

  • Reply 7 of 14
    anantksundaramanantksundaram Posts: 20,404member
    Quote:

    Originally Posted by TokyoJimu View Post



    India does not allow foreign companies to operate stores. There are Samsung stores everywhere in India, apparently operated by local firms. Apple wouldn't allow this and so has a much smaller presence.

    Get your facts straight. Since (at least) 2011, companies that sell only one brand -- e.g., Nike, Polo -- have been allowed to set up shop in India with 100% foreign ownership.

  • Reply 8 of 14
    maestro64maestro64 Posts: 5,043member
    Looks like Apple does not want to get their hands dirty dealing with India. They are going to let distributors deal with the various issues of dealing local government and all the corruption that exist there. Also I do not think an Apple Store will do what it has done everywhere else. It all about the price in India. Also imagine what as glass cube may look like there. Maybe Apple could fix up and run down landmark and turn it into a Taj Mahal.
  • Reply 9 of 14
    calicali Posts: 3,494member
    Why did you guys use a pic of a knockoff phone?

    That's an android? Pretty good replica.
  • Reply 10 of 14
    tokyojimutokyojimu Posts: 529member
    Quote:

    Originally Posted by anantksundaram View Post

     

    Since (at least) 2011, companies that sell only one brand -- e.g., Nike, Polo -- have been allowed to set up shop in India with 100% foreign ownership.


     

    OK, true (2012, actually). But they are required to source at least 30% of goods sold domestically. Since Apple doesn't have manufacturing in India, they still cannot open their own stores. We will have to wait for Foxconn to start manufacturing iPhones there to meet that requirement.

  • Reply 11 of 14
    brakkenbrakken Posts: 687member

    Youtube icon and the font on the calendar app look like knock-offs. Maybe Apple isn't really selling any phones in India... ;)

  • Reply 12 of 14
    maestro64 wrote: »
    Looks like Apple does not want to get their hands dirty dealing with India. They are going to let distributors deal with the various issues of dealing local government and all the corruption that exist there. Also I do not think an Apple Store will do what it has done everywhere else. It all about the price in India. Also imagine what as glass cube may look like there. Maybe Apple could fix up and run down landmark and turn it into a Taj Mahal.

    I picked up, from the article, that by changing how the distribution of iPhones are to be carried out, Apple sales will double or more in a year. You are suggesting Apple sell phones in India the sale way they do in NY City, which has already proven to not work as well in India.

    While I agree price is very important in India, it has also proven to be also being locally available too.
  • Reply 13 of 14
    atklatkl Posts: 8member
    Apple has enough sales in big cities, but for growth, they need to expand to smaller towns where the iPhone is nearly up there with luxury cars as a status symbol. The average person can buy 3 phones for the cost of an iPhone 6, (people aren't eager to get hold of discounted 4 and 5 version still available online, owning an iPhone means you have the latest or you are just a wannabe). The article misses something, even with 2% share, barely any discounts until a new model arrives, iPhone rakes in big profits, Samsung is offering cashback,discounts and accessories weeks after launch, Apple never does that. The reason why sales are down is because the economy is down, once it picks up, sales will naturally go up, no phone in India has the appeal of an iPhone, and Apple doesn't do crap ads that Samsung is famous for.
  • Reply 14 of 14
    maestro64maestro64 Posts: 5,043member
    I picked up, from the article, that by changing how the distribution of iPhones are to be carried out, Apple sales will double or more in a year. You are suggesting Apple sell phones in India the sale way they do in NY City, which has already proven to not work as well in India.

    While I agree price is very important in India, it has also proven to be also being locally available too.

    Actualy I am not suggesting that, i know that will never work in india. My really point is that fact that Apple's ethics about business will not allow it to deal directly in India. They putting in a middle man and let them deal with the on the ground issues. Let put it this way, Russia is highly unethical, and Apple will set up shop there, but seems to have avoided doing so in India. Even China is an ethical mess but Apple seem to find a way to do business there and not get dragged into the mess.
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