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Apple uses mom-and-pop shops to jump into second place in India's smartphone race

post #1 of 28
Thread Starter 
Apple's increased efforts in the world's second most populous country appear to be paying off, as a new report has the iPhone maker grabbing second place in smartphones behind Samsung in India.

standardindia


CNN reported Wednesday on new figures out from technology market research firm IDC showing that Apple in the fourth quarter of 2012 grabbed 15.6 percent of smartphone revenue in India.

Apple rival Samsung remained the top brand in the market, with 38.8 percent market share. Sony (9.4 percent) and Nokia (7.3 percent) rounded out the top four.

The research firm estimated in its Asia Pacific Quarterly Mobile Phone Tracker report that smartphone shipments in India were at about five million units for the quarter, up 38 percent from the quarter previous. Smartphone penetration rates in India are estimated to be lower than 10 percent.

IDC's estimates jibe with prior reports from the firm that Apple's sales in the country had quadrupled.

The sales boom is due to increased efforts on Apple's part to make its premium-priced smartphone offerings available to Indian consumers. Using lessons learned in China, Apple has begun offering installment-based payments for Indian customers. An iPhone in India used to cost nearly a third more than in the United States, with delivery times ranging up to a year. Installment plans make the device more affordable, and Apple has also been selling iPhones on the open market and not through carriers subsidizing the cost of the device with high-margin service contracts.

Growth in the Indian market can likely only go so far, though, with Apple's current pricing structure. To better address India, China, and other developing markets, the company is expected to release a lower-cost iPhone some time over the next several months.
post #2 of 28
Good news? Then Apple will heavily drop tonight .
post #3 of 28

Only of the WSJ says it is a bad sign.

post #4 of 28
Apple is earning 70 % of the market profit , I wonder how the hell Apple can earn more with the low cost iPhone . By Dreaming ?
Edited by crazy_mac_lover - 3/13/13 at 8:21am
post #5 of 28

I can see the thriving middle class ( and the posers ) wanting to buy an iPhone, the rest of the population i think not.

 

Here in Portugal any touch screen phone is called by the populace an iPhone. 

post #6 of 28
Quote:
Originally Posted by Ochyming View Post

I can see the thriving middle class ( and the posers ) wanting to buy an iPhone, the rest of the population i think not.

 

Here in Portugal any touch screen phone is called by the populace an iPhone. 

 

Heresy! 

post #7 of 28
Quote:
Originally Posted by bleh1234 View Post

Heresy! 

Just like certain places in the US where every soft drink is called a Coke. Or every piece of tissue paper is a Kleenex. Or every motocycle is called a Honda in Vietnam.
post #8 of 28
This is the creative, aggressive go-to-market plans Apple needs on a country level basis. I love it. If Apple can get to 10%-15% unit share in India, it is off to the races. I think very achievable if they come out with a great mid-tier product

Apple stock and news is at a nadir. It is a spring coiled back all the way back

Windows survivor - after a long, epic and painful struggle. Very long AAPL

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Windows survivor - after a long, epic and painful struggle. Very long AAPL

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post #9 of 28
This can't be true as Apple is yet to sell a cheaper plastic phone! /s

Just goes to show that people will pay for the premium product, they just needed payments over time. Great job Apple.
post #10 of 28
Quote:
Originally Posted by AppleInsider View Post

Apple's increased efforts in the world's second most populous country appear to be paying off, as a new report has the iPhone maker grabbing second place in smartphones behind Samsung in India.

 

Second in percentage of revenue (due to its high price), not in market share (also due to its high price).

 
Apple is in fifth place as far as volume, even after they increased sales by a factor of four over the past half year.  
 

 


Edited by KDarling - 3/13/13 at 9:01am
post #11 of 28
Quote:
Originally Posted by zoffdino View Post

Just like certain places in the US where every soft drink is called a Coke. Or every piece of tissue paper is a Kleenex. Or every motocycle is called a Honda in Vietnam.

And copying is called Samsung...er...Xeroxing.
post #12 of 28
Quote:
Originally Posted by zoffdino View Post


Just like certain places in the US where every soft drink is called a Coke. Or every piece of tissue paper is a Kleenex. Or every motocycle is called a Honda in Vietnam.

WTF? People call things like ginger ale or cream soda coke? That's pretty strange.

post #13 of 28
What Apple really lacks in India is service. No Apple stores. Unlike everywhere else, where having a physical company store for support is a big draw to the brand, in India, you have a mish-mash of third party stores where service can really vary. Apple will do substantially better in the Indian market when it starts expanding its retail chain.
post #14 of 28
Quote:
Originally Posted by KDarling View Post

Second in percentage of revenue (due to its high price), not in market share (also due to its high price).

Why does this get brought up anytime Apple's not first in volume? Do you not realize that Apple is a for-profit company not a for-volume company. They don't even make the top 5 in PC sales in most markets and yet Apple is by far the most profitable PC maker in the world. What sense is there to through all that out the window jus so they can top a volumes list?

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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post #15 of 28
Quote:
Originally Posted by Jetz View Post

What Apple really lacks in India is service. No Apple stores. Unlike everywhere else, where having a physical company store for support is a big draw to the brand, in India, you have a mish-mash of third party stores where service can really vary. Apple will do substantially better in the Indian market when it starts expanding its retail chain.

That certainly has an effect. One of the benefits for me is being able to say "If there is a problem I walk over the Apple Store to get it replaced." You just can't do that with most other CE. Google's Nexus is sold online and they've already had issues over who takes care of those issues. If you buy a phone from a carrier they usually want to pay the buck or you have to wait a long tim for service.

I'd like to think that having at least one big store in each major city would be a good start to solidifying a presence, but at the same time I've spent considerable time in India and therefore can't honestly say that would be a good idea with current modus operandi. I can remember the Sony and Nokia stores (this is back when both were on top) being empty but with plenty of staff but they also didn't have internet connected products sitting on the tables begging to be used. I question if Apple's usual method of allowing anyone to come in and use their demo machines works as well for the Indian market at this time.

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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post #16 of 28
But I thought Apple needed to make a plastic $100 off contract iPhone for India cause they can't afford to buy iPhones.
post #17 of 28

You have to give Apple credit yet again, instead of going the traditional path of trying to sign on a big carrier they went directly to the little guy and probably negotiated a better deal for the little guy as well as Apple, they looks at the Indian challenged differently and it appears to be paying off.

post #18 of 28

India is all about fashion biz. When one person is carrying high class brand product, herd will follow. Opening an apple store in India is the key to apple's success. Samdung will be taking a hit big time. People in India care more about what they own in their hands to impress (dominate by showing off) the rest who do not!  Mentality has changed!

post #19 of 28
Quote:
Originally Posted by Ochyming View Post

I can see the thriving middle class ( and the posers ) wanting to buy an iPhone, the rest of the population i think not.

Here in Portugal any touch screen phone is called by the populace an iPhone. 

Ah, good old ignorance.

In some parts of the world I used to live and visit, every revolver was called "Colt" and any 4x4was called "Jeep" by majority of population.

"What's your favourite Jeep?"
"Why, Mitsubishi Pajero, of course."

I don't think this trend will ever change. It's the way of the mankind.
post #20 of 28

Quote:
Originally Posted by SolipsismX View Post

Why does this get brought up anytime Apple's not first in volume? Do you not realize that Apple is a for-profit company not a for-volume company. 

 

Sure, but some volume is also necessary to make profits.  The chart showed who makes more money in India, and it was done by selling more phones:

 

  • Samsung - 39% of the revenue
  • Apple - 16% of the revenue

 

Quote:
Originally Posted by charlituna View Post

But I thought Apple needed to make a plastic $100 off contract iPhone for India cause they can't afford to buy iPhones.

 

Nothing has changed.  Most people can't afford one outright.

 

Smartphone sales are less than 3 million a quarter in India, in a country with about 1 billion cell users.  Out of those few million, Apple contributes about 150K-200K.

 
India is not a great market for expensive phones.  Heck, a new iPhone5 is 1/4 the price of the cheapest Indian car (Tata Nano at $2800).
post #21 of 28
Quote:
Originally Posted by KDarling View Post

Some volume is also necessary to make profits.

Some volume but you are being smarmy by implying that more volume equates to more profit as if Apple and Samsung sell the exact same class handsets. They don't so stop lying. As much as you want to convince everyone that Samsung sells more high end smartphones than Apple it's simply not true no matter how you try to spin it.

Samsung has done a great job promoting and selling the Galaxy S III and it's had a very long run for an Android-based device. So much so that Samsung has actually seen fit to offer decent updates for it. Why not enjoy that true instead of trying to pile on poorly contrived lies everyone can see through?

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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post #22 of 28
Quote:
Originally Posted by KDarling View Post

Sure, but some volume is also necessary to make profits.  The chart showed who makes more money in India, and it was done by selling more phones:

  • Samsung - 39% of the revenue
  • Apple - 16% of the revenue

It's interesting that Apple has 70% of the profits worldwide while being out shipped by Sammy then.
post #23 of 28
Quote:
Originally Posted by SolipsismX View Post

Some volume but you are being smarmy by implying that more volume equates to more profit as if Apple and Samsung sell the exact same class handsets. They don't so stop lying. As much as you want to convince everyone that Samsung sells more high end smartphones than Apple it's simply not true no matter how you try to spin it.

 

Pretty rude strawman attempt.  I neither said nor implied said anything of the sort.  In fact, quite the opposite... my point was that cheaper is better here.

 

You said Apple was for-profit, not for-volume.  As I pointed out, in this situation volume will give the most revenue, because higher priced phones have a much smaller market in India than other places.

 

It's why so many expect Apple to create a less expensive model.

 

Quote:
Originally Posted by jungmark View Post

It's interesting that Apple has 70% of the profits worldwide while being out shipped by Sammy then.

 

Good for them, but this thread is about sales in India, not worldwide.

 

In this case, the seller of an affordable phone is very likely going to make far more overall revenue.

post #24 of 28
Quote:
Originally Posted by KDarling View Post

Pretty rude strawman attempt.  I neither said nor implied said anything of the sort.  


You said Apple was for-profit, not for-volume.  All I pointed out was, that in this situation, volume will give the most revenue, because higher priced phones have a much smaller market in India than other places.


It's why so many expect Apple to create a less expensive model.

1) You did imply it.

2) If Apple creates a cheaper phone for certain markets, like China Mobile, it's because they value volume over profit it's because the volume is a means to getting more profit but the ultimate goal for a for-profit company is profit. It's pretty damn simple which is why is perplexes me when people look at volume without the slightly consideration for the companies attempt at gaining profits. Oh wait, it doesn't perplex me as the answer is because it's the only argument you have to "prove" that Apple is losing.

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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post #25 of 28
Quote:
Originally Posted by SolipsismX View Post

2) If Apple creates a cheaper phone for certain markets, like China Mobile, it's because they value volume over profit it's because the volume is a means to getting more profit but the ultimate goal for a for-profit company is profit.

 

That's what I said.  Sometimes volume is the means to more profit, instead of higher prices.  You're just repeating me.

 

Quote:

It's pretty damn simple which is why is perplexes me when people look at volume without the slightly consideration for the companies attempt at gaining profits. Oh wait, it doesn't perplex me as the answer is because it's the only argument you have to "prove" that Apple is losing.

 

You're the only one in this debate who brings up phrases like "Apple is losing". 

 

My post was only countering your claim that Apple doesn't need to go after volume to get the most profit.   Sometimes any company does... just as you agreed above.

post #26 of 28
Quote:
Originally Posted by KDarling View Post

That's what I said.  Sometimes volume is the means to more profit, instead of higher prices.  You're just repeating me.


You're the only one in this debate who brings up phrases like "Apple is losing". 

 
My post was only countering your claim that Apple doesn't need volume for profit.   Sometimes any company does... just as you agreed above.

This is my comment to you. "Why does this get brought up anytime Apple's not first in volume? Do you not realize that Apple is a for-profit company not a for-volume company." With your retort implying that volume is more important that profit and not 'a' means to profit, the primary goal.

You've made this same argument many times in many threads. Clearly Apple has "some volume" so all your claims to make it look like Apple can't sell a damn phone are complete crap.

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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post #27 of 28
Quote:
Originally Posted by KDarling View Post

 

That's what I said.  Sometimes volume is the means to more profit, instead of higher prices.  You're just repeating me.

 

You're the only one in this debate who brings up phrases like "Apple is losing". 

 

My post was only countering your claim that Apple doesn't need to go after volume to get the most profit.   Sometimes any company does... just as you agreed above.

I too hate seeing this stupid discussion about volume with concern to Apple, since it is proven, factual information, that Apple is not high-volume company and will never be. The overall quality of their products far outstrips any PC or Phone company in today's market and their profit to volume ratio is really stunning. As for India remember the definition of smartphone and then look at the number of different 'smartphones' offered by Samsung. Latest one in India is 'GRAND", yes a grand load of crap, yes I can say that because I bought one for a second phone at work and was very disappointed. I should have just got Z10 with iPhone 5.

post #28 of 28
Quote:
Originally Posted by KDarling View Post

Pretty rude strawman attempt.  I neither said nor implied said anything of the sort.  In fact, quite the opposite... my point was that cheaper is better here.


You said Apple was for-profit, not for-volume.  As I pointed out, in this situation volume will give the most revenue, because higher priced phones have a much smaller market in India than other places.


It's why so many expect Apple to create a less expensive model.



Good for them, but this thread 
is about sales in India, not worldwide.


In this case, the seller of an affordable phone is very likely going to make far more overall revenue.

I think in India, it's more about availability than price. Financing the iPhone seems to be working. I don't think Apple should release a new low cost model. They can just drop the price if the previous version.
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