iPhone sales volume drops, Apple's market share falls in growing India

Posted:
in iPhone
Apple may consider India one of its important markets for the future, but its sales performance in the country in 2016 has fallen 35 percent year over year, causing a significant loss in overall marketshare, new estimates show.




Android remains the dominant platform in India, climbing from 90 percent operating marketshare in 2015, to 97.1 percent in 2016, according to market research firm Strategy Analytics. Android's gains came from Apple in part, but predominantly from the share of other operating systems falling from 5.5 percent to 0.5 percent from 2015 to 2016.

In a market that increased by 28 percent year-over-year, as a result in the drop in Apple iPhone sales, Apple's marketshare fell from 4.5 percent to 2.4 percent.




"We are in India for the next thousand years," Apple CEO Tim Cook told Indian media in May. "Our horizon is very long. We are focused on best, not most. So it doesn't bother me that we don't have top market share."

After a failed bid to prove that it was selling state-of-the-art or cutting edge technologies, Apple has been fighting India's local sourcing rules that demand that a multinational company source 30 percent of its components in India before retail establishments can operate. However, single-brand retailers like Apple now have a three-year grace period to operate stores before mandatory compliance of the 30 percent rule.

Apple's main assembly partner, Foxconn, is believed to be planning an Apple-focused factory for India, which would fulfill the 30 percent mandate. No deal has yet been signed, and even after negotiations complete, operations would take more than a year to commence.

Earlier this year, Apple launched a technology center in Hyderabad, focused on Apple Maps development. In July, the company leased 40,000 square feet in Bengaluru for a planned design and development accelerator. Neither software development center will have any effect on sourcing percentages.
«1

Comments

  • Reply 1 of 27
    wigbywigby Posts: 692member
    How come we all know this is a BS story but AI publishes it without even mentioning Tim Cook's Q3 conference call that completely contradicts the report?
    calijahbladerogifan_newjustadcomicslatifbpanantksundaramSpamSandwichradarthekatchiapscooter63
  • Reply 2 of 27
    calicali Posts: 3,494member
    Ok, I was a little worried. Seriously Apple should aim at %70+ worldwide marketshare and %100+ profitshare.
    latifbp
  • Reply 3 of 27
    After a failed bid to prove that it was selling state-of-the-art or cutting edge technologies

    Wait, what? What kind of rathole third-world country is this? 
    There's no need to be rude about it. 
    jahbladeanantksundaramMacProspice-boydasanman69
  • Reply 4 of 27
    mazda 3smazda 3s Posts: 1,613member
  • Reply 5 of 27
    maestro64maestro64 Posts: 5,043member
    sog35 said:
    This is UTTER BULLSHIT.

    Go to the conference call transcripts to see these guys are LIARS.
    http://seekingalpha.com/article/3836826-apples-aapl-ceo-tim-cook-q1-2016-results-earnings-call-transcript?page=4
    http://seekingalpha.com/article/3968300-apple-aapl-timothy-donald-cook-q2-2016-results-earnings-call-transcript?page=2
    http://seekingalpha.com/article/3991811-apple-aapl-timothy-donald-cook-q3-2016-results-earnings-call-transcript


    Tim Cook made these statements with the threat of JAIL TIME if they were false or misleading. 

    Quarter ending Dec2015 (Q1) - Cook said iPhone sales in India were up 76% YoY
    Quarter ending Mar2016 (Q2) - Cook said iPhone sales in India were up 56% YoY
    For 3 Quarters ending June2016 (Q1-Q3) - Cook said iPhone sales in India were up 51% YoY

    I find it IMPOSSIBLE that iPhone sales were down 35% looking at those numbers above.

    This is just another example of how these companies like Stratgic Analytics spread total bullshit in order to please their customers (who are Apple competitors)


    It just means more crap was sold in India verses Apple's uptick in numbers, so yes Apple's YoY number went up, however, all the other cheap crap went up faster so they could be down when they are in fact up. It is the Statistic Game and the fact everyone makes up numbers. My prediction is Apple numbers will never be close their numbers in US, EU or China. The large majority of Indians will never spend the money for an Iphone. It is just a cultural difference, if you talk to these folks and try to understand why they buy a low cost android phone they can not explain the purchase decision other than saying the value to price is best. The problem is they do not understand what Value is. Most equate Value to price, and lower price has higher value. They are still check list buys like US consumers were back in the 80's and 90's.
    edited August 2016 caliradarthekatDracarysdasanman69
  • Reply 6 of 27
    After a failed bid to prove that it was selling state-of-the-art or cutting edge technologies

    Wait, what? What kind of rathole third-world country is this? 
    I realize that, given your past posting history, this may be tough, but please try not to be an a$$h0le.
    singularitycnocbuilondorradarthekathmmspice-boyafrodri
  • Reply 7 of 27

    maestro64 said:

    It just means more crap was sold in India verses Apple's uptick in numbers, so yes Apple's YoY number went up, however, all the other cheap crap went up faster so they could be down when they are in fact up. It is the Statistic Game and the fact everyone makes up numbers. 
    Your post makes no sense. First, the reference to 'sales' means in dollar terms, by default. Second, if it was "more crap" (to quote you) that was sold, then volumes should have been even higher (relative to non-'crap'), and ergo, the market share should have gone up.

    Apple makes up its numbers? Get a damn clue.
    edited August 2016 afrodri
  • Reply 8 of 27

    maestro64 said:
    The large majority of Indians will never spend the money for an Iphone. 
    Perhaps you should apply to become Apple SVP of Marketing, since you apparently seem to know more about the Indian market and consumer than Cook seems to.

    Btw, it's an 'iPhone', not an 'Iphone' (I am guessing you must be typing from a PC or an Android phone, since all Apple devices automatically correct the spelling for Apple device and product names; unless, of course, you turned off autocorrect, in which case, learn to spell product names correctly).
    calilondorchiahmmapplepieguy
  • Reply 9 of 27
    paxmanpaxman Posts: 4,729member

    Wait, what? What kind of rathole third-world country is this? 
    I realize that, given your past posting history, this may be tough, but please try not to be an a$$h0le.
    You misunderstood - he was talking about 'THIS' country - i.e. the USofA. I think he was just arbitrarily thinking out loud.
    londor
  • Reply 10 of 27
    paxmanpaxman Posts: 4,729member


    maestro64 said:

    It just means more crap was sold in India verses Apple's uptick in numbers, so yes Apple's YoY number went up, however, all the other cheap crap went up faster so they could be down when they are in fact up. It is the Statistic Game and the fact everyone makes up numbers. 
    Your post makes no sense. First, the reference to 'sales' means in dollar terms, by default. Second, if it was "more crap" (to quote you) that was sold, then volumes should have been even higher (relative to non-'crap'), and ergo, the market share should have gone up.

    Apple makes up its numbers? Get a damn clue.
    But his point still stands, kinda, doesn't it? The lower numbers of iPhones sold makes no sense, but that Apple's share of the market goes down because other's go up, makes sense. Not that it is anything to worry about. A very disingenuous article altogether.
    patchythepirate
  • Reply 11 of 27
    paxman said:
    I realize that, given your past posting history, this may be tough, but please try not to be an a$$h0le.
    You misunderstood - he was talking about 'THIS' country - i.e. the USofA. I think he was just arbitrarily thinking out loud.
    At least Apple doesn't have to pay off officials and make all kinds of concessions to get a store opened here. 
    cali
  • Reply 12 of 27
    paxman said:
    But his point still stands, kinda, doesn't it? The lower numbers of iPhones sold makes no sense, but that Apple's share of the market goes down because other's go up, makes sense. 
    No. You should read the article: the overall market went up 28% (which is less than Apple's 51% if it had the same ASP as the prior year, the gain in share would be even larger if more lower-end iPhones were sold).

    (Edited my wording to clarify post).
    edited August 2016 afrodri
  • Reply 13 of 27
    After a failed bid to prove that it was selling state-of-the-art or cutting edge technologies

    Wait, what? What kind of rathole third-world country is this? 
    It is called 'protectionism'. This is something that the USA is very good at as well.
    You know that campaign to 'buy American made goods' even if they are of worse quality than the ones made elsewhere?
    Having worked in India (Delhi, mumbai and Chennai) I fully understand the issues that Apple are facing.
    Indians will buy local made stuff even if it is of poor quality. That's how they seem to think.
    Then there are the hurdles you have to go through when getting a phone. Forget the idea of burner phones. Forget the idea of being able to get a phone in less than 2 hours of paperwork and almost signing away your firstborn to the government (in case you are a terrorist).
    Local made Androids are (relatively) easy to get hold of. As Tim Cook says, iPhones are rather too pricey for India. fix that and I'm sure they'll sell a lot more.

    afrodri
  • Reply 14 of 27
    gatorguygatorguy Posts: 24,176member
    While not specific to India PED has an article up (via UBS) explaining that while the rate of new iPhone users may be dropping and may even decline up to 10% in some regions over the near-term actual iPhone sales will continue to expand. As long as Apple has such a healthy retention rate for it's customers iPhone sales will continue to expand. As PED says, Apple users are nothing if not loyal. 

    An 18% sales increase is anticipated for 2018, and even a small one for next year tho it seems nearly all prognosticators, even the most Apple loyal, don't expect much from 2017.  ( If you're a UBS investor you can probably look at the original report written by Steven Milunovich)

    If you're not a subscriber to PED30 but are an Apple investor you might want to consider it.  He has good articles on a regular basis. 

    edited August 2016 brakken
  • Reply 15 of 27
    SpamSandwichSpamSandwich Posts: 33,407member
    edited August 2016
  • Reply 16 of 27
    spice-boyspice-boy Posts: 1,450member
    Congratulations to India's government and demanding big companies like Apple bring jobs to that country. I wish the US had similar laws..... of wait we did but Congress did away with them and the middle class along with. 
    brakken
  • Reply 17 of 27
    blitz1blitz1 Posts: 433member
    Actually, the correct headline is "SoB35 thinks latest data from Strategic..."
    sog35 said:
    wigby said:
    How come we all know this is a BS story but AI publishes it without even mentioning Tim Cook's Q3 conference call that completely contradicts the report?
    Exactly.

    I should be the editor of this site. 

    Its almost like I know more about the company (on the financial side) then them.

    Go make me the Financial Editor and stupid articles like this don't get published.  If they do then I would include Tim Cook's clear statement that iPhone sales are up 51%

    The headline should have said:

    Latest data from Strategic Analytics seems dubious

    Instead we get a head line stated as a fact: iPhone sales in India drop

    Utter BS

  • Reply 18 of 27
    brakkenbrakken Posts: 687member
    Only goog cares about market share. AI, stay focussed on profitability of Apple's products. That's what Apple itself does, right?
  • Reply 19 of 27
    croprcropr Posts: 1,122member
    brakken said:
    Only goog cares about market share. AI, stay focussed on profitability of Apple's products. That's what Apple itself does, right?
    I would not be so sure.  With such a low marketshare, Apple has zero negotiation power, when/if it wants to make a Apple Pay deal with the Indian banks.  Communciation services like Facetime and iMessage are basically worthless if the chances are too high that your correspondant does not have an iPhone.  Local app developers are less likely to consider iOS and will only focus on Android, which means that local banks will not support iOS in their banking app, local transport companies will not support iOS in their timetable app, ...

    Apple needs a decent market share (>15%) in order to have enough weight on the local community

    cnocbuiHabi_tweet
  • Reply 20 of 27
    sreesree Posts: 152member

    Wait, what? What kind of rathole third-world country is this? 
    It is called 'protectionism'. This is something that the USA is very good at as well.
    You know that campaign to 'buy American made goods' even if they are of worse quality than the ones made elsewhere?
    Having worked in India (Delhi, mumbai and Chennai) I fully understand the issues that Apple are facing.
    Indians will buy local made stuff even if it is of poor quality. That's how they seem to think.
    Then there are the hurdles you have to go through when getting a phone. Forget the idea of burner phones. Forget the idea of being able to get a phone in less than 2 hours of paperwork and almost signing away your firstborn to the government (in case you are a terrorist).
    Local made Androids are (relatively) easy to get hold of. As Tim Cook says, iPhones are rather too pricey for India. fix that and I'm sure they'll sell a lot more.

    Sorry, but a lot of what you have written is nonsense.

    "Indians will buy local made stuff even if it is of poor quality. That's how they seem to think."
    - Entirely incorrect. Infact Indians tend to buy imported stuff even if it is worse than local made stuff. There is strong perception of local stuff being lower quality. The only thing that beats that is actually the perception that chinese stuff is even lower quality. (They buy the chinese stuff in huge quantities too).

    "Then there are the hurdles you have to go through when getting a phone. Forget the idea of being able to get a phone in less than 2 hours of paperwork and almost signing away your firstborn to the government (in case you are a terrorist)."
    - Mostly Not true you can go into a shop and buy a phone and start using it. You need an ID & Address proof to get a SIM card (if you don't already have one). How many times do you get a new SIM as compared to getting a new phone?

    "Local made Androids are (relatively) easy to get hold of. As Tim Cook says, iPhones are rather too pricey for India. fix that and I'm sure they'll sell a lot more. "
    - Somewhat true. The ones who can source their iphones/ipads/macs from the US through family or friends that are arriving. This is because the US-India price difference for apple stuff is significant (which is so for other brands like sony/samsung etc.) Probably supply-chain issues that apple should look at fixing.
    patchythepirate
Sign In or Register to comment.