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

Posted:
in iPhone edited January 2014
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.
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Comments

  • Reply 1 of 27
    Good news? Then Apple will heavily drop tonight .
  • Reply 2 of 27
    ochymingochyming Posts: 474member


    Only of the WSJ says it is a bad sign.

  • Reply 3 of 27
    Apple is earning 70 % of the market profit , I wonder how the hell Apple can earn more with the low cost iPhone . By Dreaming ?
  • Reply 4 of 27
    ochymingochyming Posts: 474member


    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. 

  • Reply 5 of 27
    bleh1234bleh1234 Posts: 146member

    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! 

  • Reply 6 of 27
    zoffdinozoffdino Posts: 192member
    bleh1234 wrote: »
    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.
  • Reply 7 of 27
    red oakred oak Posts: 628member
    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

  • Reply 8 of 27
    richard getzrichard getz Posts: 1,142member
    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.
  • Reply 9 of 27
    kdarlingkdarling Posts: 1,640member

    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.  


     



     


  • Reply 10 of 27
    jungmarkjungmark Posts: 6,629member
    zoffdino wrote: »
    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.
  • Reply 11 of 27
    joelsaltjoelsalt Posts: 827member

    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.

  • Reply 12 of 27
    jetzjetz Posts: 1,293member
    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.
  • Reply 13 of 27
    solipsismxsolipsismx Posts: 19,566member
    kdarling wrote: »
    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?
  • Reply 14 of 27
    solipsismxsolipsismx Posts: 19,566member
    jetz wrote: »
    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.
  • Reply 15 of 27
    charlitunacharlituna Posts: 7,198member
    But I thought Apple needed to make a plastic $100 off contract iPhone for India cause they can't afford to buy iPhones.
  • Reply 16 of 27
    maestro64maestro64 Posts: 4,414member


    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.

  • Reply 17 of 27


    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!

  • Reply 18 of 27
    nikon133nikon133 Posts: 2,600member
    ochyming wrote: »
    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.
  • Reply 19 of 27
    kdarlingkdarling Posts: 1,640member



    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).

  • Reply 20 of 27
    solipsismxsolipsismx Posts: 19,566member
    kdarling wrote: »
    <span style="line-height:1.231;">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?
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