Apple's 'aggressive' approach in India increases sales by 400%

Posted:
in General Discussion edited January 2014
Over the last three months, Apple has seen its sales grow 400 percent in India, thanks to the company's "aggressive" approach.

Apple's recent success in India was profiled on Friday by The Times of India, which said that while the iPhone maker has "ignored" India for years, its recent attention has paid off. Apple is said to have begun an "extensive advertising and marketing campaign" for the iPhone in particular.

Those efforts have resulted in sales increasing by as much as 400 percent, according to estimates from IDC. And there's much more room to grow in India, where smartphone penetration rates are less than 10 percent.

India


"Apple, founded by the late Steve Jobs who came to India in search of spiritual salvation, has had only a marginal presence in the country," Friday's report said. "It has a negligible share of the local smartphone market, where Samsung is the clear leader."

Apple's recent interest in India is reminiscent of the company's push into China that began a few years ago. That approach has also been highly successful for the company, as China has become a key component of the company's continued growth.

Last year's iPhone 5 launch represented the fastest ever global rollout for a new handset. The iPhone 5 launched in India on Nov. 2, and around the same time Apple started billing content through the iOS App Store in the Indian rupee currency, a switch from the previous billing done in U.S. dollars.

The iTunes Music Store also launched in India, along with 55 other countries, in early December, bringing Apple's total number of countries to 119. The iTunes Store also launched in India with local artists, such as AR Rahman, in addition to U.S. acts.
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Comments

  • Reply 1 of 66
    stelligentstelligent Posts: 2,680member


    Although Tim Cook has not spoken much about India, it should be considered a market as important as China. So this is good news. Hopefully, it is a humble beginning. Perhaps an Apple Store is in the works.

  • Reply 2 of 66
    solipsismxsolipsismx Posts: 19,566member
    This was always coming as the next market after China. Once China Mobile comes onboard there will little to no more rapid gains that will happen outside of a new breakthrough device.

    I think it's markets like China and India that a larger iPhone might be a huge hit.
  • Reply 3 of 66
    philboogiephilboogie Posts: 7,671member
    Is that the flag from Niger, Tajikistan or India?
  • Reply 4 of 66
    solipsismxsolipsismx Posts: 19,566member
    philboogie wrote: »
    Is that the flag from Niger, Tajikistan or India?

    Applestan, United States of Apple, or People's Republic of Apple are my guesses.



    PS: How many countries have a lower GDP than Apple's profit last year? How many countries could Apple buy with its cash?
  • Reply 5 of 66

    Quote:

    Originally Posted by PhilBoogie View Post



    Is that the flag from Niger, Tajikistan or India?


     


    Yeah... Commercializing one's flag can be off-putting.


     


    The article didn't mention any Apple actions that seemed particularly "aggressive" -- rather just "attentive" to the needs and preferences of the customer.


     


    In any case, I am glad to see that Apple is making some efforts to address this massive marketplace.


     


    I think that India is one of the societies that could benefit from an iPad Mini/iPhone combination..

  • Reply 6 of 66
    stelligentstelligent Posts: 2,680member

    Quote:

    Originally Posted by SolipsismX View Post



    This was always coming as the next market after China. Once China Mobile comes onboard there will little to no more rapid gains that will happen outside of a new breakthrough device.



    I think it's markets like China and India that a larger iPhone might be a huge hit.


     


    With the resources Apple has, why should focus on India start only after China? To me, investing in India is a good way of spending their cash, much more constructive than share buyback.

  • Reply 7 of 66
    steven n.steven n. Posts: 1,223member
    Ok. So they went from 1000 iPhones sold to 4000 sold. Not that big of a deal.

    India really is sad when it comes to Apple hardware. BADA does better in India than iOS. Apple needs to pull 400% growth QoQ to even register in India with the next 18 months.
  • Reply 8 of 66

    Quote:

    Originally Posted by SolipsismX View Post





    Applestan, United States of Apple, or People's Republic of Apple are my guesses.







    PS: How many countries have a lower GDP than Apple's profit last year? How many countries could Apple buy with its cash?


     


    Or maybe "Applia".

  • Reply 9 of 66

    Quote:

    Originally Posted by Steven N. View Post



    Ok. So they went from 1000 iPhones sold to 4000 sold. Not that big of a deal.



    India really is sad when it comes to Apple hardware. BADA does better in India than iOS. Apple needs to pull 400% growth QoQ to even register in India with the next 18 months.


    The thing is most people who can afford it in india get it from the US through a friend or relative or during travel. Apple sells it at a significantly more price here than the exchange rate calculation. There are atleast 7 iPhones in my 50 member team here and all of them were bought in the US.  


     


    Might be due to some import duties or other taxes, but that is the way it is. 

  • Reply 10 of 66
    stelligentstelligent Posts: 2,680member

    Quote:

    Originally Posted by Steven N. View Post



    Ok. So they went from 1000 iPhones sold to 4000 sold. Not that big of a deal.



    India really is sad when it comes to Apple hardware. BADA does better in India than iOS. Apple needs to pull 400% growth QoQ to even register in India with the next 18 months.


    I really don't get the purpose of such statements. Mostly factually untrue. Devoid of wit, insight or sincerity. No intellectual content whatsoever. Makes the person posting it look like he's trying too hard. What's the point?

  • Reply 11 of 66
    solipsismxsolipsismx Posts: 19,566member
    stelligent wrote: »
    With the resources Apple has, why should focus on India start only after China? To me, investing in India is a good way of spending their cash, much more constructive than share buyback.

    Not sure where "only after" comes into play but for various reasons China's economy was a much better fit for Apple before India was for rapid expansion. Apple has put stores in China before India for a reason.
  • Reply 12 of 66
    AAPL will drop coz this news may have shown Apple growth may have peaked .
  • Reply 13 of 66

    Quote:

    Originally Posted by iamnemani View Post


    The thing is most people who can afford it in india get it from the US through a friend or relative or during travel. Apple sells it at a significantly more price here than the exchange rate calculation. There are atleast 7 iPhones in my 50 member team here and all of them were bought in the US.  


     


    Might be due to some import duties or other taxes, but that is the way it is. 



    Its the import duty that hacks the price, since it is deemed a luxury good


    Apple is perceived and seen as luxury goods in India with same status as Tag, Omega and Mont Blanc. All these brands have status symbol and owning Apple products in India, means you earning a good wage.


     


    Apple even if their sold to the 5% that could afford their products in the India, that is still over 50,000,000 potential customers.


     


    Also Airtel has started to sell iPhones with electronic monthly installments (EMI). You pay about 30% down and rest you can pay over 6 months. This makes even more affordable to Middle Class.

  • Reply 14 of 66
    stelligentstelligent Posts: 2,680member

    Quote:

    Originally Posted by SolipsismX View Post





    Not sure where "only after" comes into play but for various reasons China's economy was a much better fit for Apple before India was for rapid expansion. Apple has put stores in China before India for a reason.


    I'm curious what the reasons are. On one hand, I have always perceived India as being more tech friendly. If I am not mistaken, India has been a strong market for Blackberry. OTOH, I appreciate that Apple may have established strong networks in China due to its manufacturing operations. Networking is how business is done in China, almost more so than most other regions in the world. So perhaps it is only natural for Apple to use those connections to open doors to the carriers and the government.

  • Reply 15 of 66
    stelligentstelligent Posts: 2,680member

    Quote:

    Originally Posted by crazy_mac_lover View Post



    AAPL will drop coz this news may have shown Apple growth may have peaked .


     


    Give it a rest. And I mean that in all sincerity. Half of the people can only see Apple in the optics of $AAPL. You are simply giving yourself ulcers.

  • Reply 16 of 66
    steven n. wrote: »
    Ok. So they went from 1000 iPhones sold to 4000 sold. Not that big of a deal.

    India really is sad when it comes to Apple hardware. BADA does better in India than iOS. Apple needs to pull 400% growth QoQ to even register in India with the next 18 months.

    It is really a huge deal, in India the iPhone is unsubsidized, meaning they have to pay full price for the phone, iPhone are not cheap, very expensive, it shows that try can afford to buy expensive things, good for their economy, good for the world economy, and great for Apple
  • Reply 17 of 66

    Quote:


    Quote:

    Originally Posted by Steven N. View Post



    Ok. So they went from 1000 iPhones sold to 4000 sold. Not that big of a deal.



    India really is sad when it comes to Apple hardware. BADA does better in India than iOS. Apple needs to pull 400% growth QoQ to even register in India with the next 18 months.




    Originally Posted by stelligent View Post


    I really don't get the purpose of such statements. Mostly factually untrue. Devoid of wit, insight or sincerity. No intellectual content whatsoever. Makes the person posting it look like he's trying too hard. What's the point?



     


    The purpose might be just to point out the lack of any actual numbers in this report apart of "whooping" 400%.

    One might just wonder why is it so?


    Marketing, marketing, marketing.

  • Reply 18 of 66


    Please change the flag.  It's a desecration to the Flag and the Country.


     


    How would you feel if AI put an Apple where the stars should be on the USA flag?

  • Reply 19 of 66
    kdarlingkdarling Posts: 1,640member

    Quote:

    Originally Posted by Nathillien View Post


    The purpose might be just to point out the lack of any actual numbers in this report apart of "whooping" 400%.



     


    Yep.  Here are some numbers taken from old posts:


     


    When it started, the iPhone was only selling about 50,000 a year in India.   Last year, that increased to about 50,000 per quarter .   Last Fall, Apple started an aggressive campaign, and now it's grown to about 180,000 a quarter.   (Between Fall and now is the "3-4 times" increase they're talking about.)


     


    For comparison:


     



    • China - 2,500,000 iPhones per quarter (3Q12, not sure now)


    • India - .... 180,000 iPhones per quarter (was 50,000 in 3Q12)




    China sales are about a dozen times India sales (they were fifty times as much last Fall), even though both nations have about 1 billion cell subscribers each, give or take a couple hundred million. 


     


    Markets like India are why investors want a cheaper model.  Question is, will Tim Cook chase those sales?

  • Reply 20 of 66
    jragostajragosta Posts: 10,473member
    steven n. wrote: »
    Ok. So they went from 1000 iPhones sold to 4000 sold. Not that big of a deal. .

    Well, no. The article says that sales grew by 400%. So if they previously sold 1,000 iPhones, then the new number is 5,000.

    If you're going to make a stupid joke, at least get the math right.
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