Apple loses ground in Indian smartphone market, iPhone 5s still favored over SE - research

Posted:
in iPhone
Despite Apple attempts to push deeper into the Indian smartphone market, the iPhone is still largely failing to gain traction, according to a recent research study.




Although Indian smartphone shipments grew 17.1 percent sequentially in the June quarter, after half a year of contraction, most native and international companies saw shipments shrink -- with Chinese companies seizing all of the growth, IDC said.

Even Apple's older offerings are considered "premium" in India. In that segment, IDC claimed that the iPhone SE failed to make any significant impact, with the iPhone 5s contributing most of Apple's share of devices priced at $300 or higher.




Samsung continued to dominate the Indian smartphone market with a 25.1 percent share, and 10.9 percent sequential growth. Micromax, Lenovo, Intex, and Reliance rounded out the top five.

IDC noted that feature phones continue to account for more than half of the total Indian phone market. Nevertheless, the smartphone market is not expected to contract for the remainder of the year because of the widening penetration of LTE networks, and the contraction of CDMA.

Apple is in the middle of trying to open retail stores in India to improve its current sales channels. The company was initially blocked from building stores by government product sourcing requirements, but those regulations have recently been eased.

In an interview with CNBC in May, CEO Tim Cook argued that growth in India will ultimately play a huge role in Apple's future. Reinforcing the company's commitment to the the country, it recently leased 40,000 square feet for a development center in Bengaluru.
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Comments

  • Reply 1 of 41
    tzeshantzeshan Posts: 2,351member
    India is dirt cheap.  Does Tim Cook realize this is a contradiction of Apple business of maintaining high profit margins?  
    magman1979
  • Reply 2 of 41
    calicali Posts: 3,494member
    Apple stores need to open ASAP
    latifbp
  • Reply 3 of 41
    cnocbuicnocbui Posts: 3,613member
    This seems a bit strange.  If that pie chart is accurate, Apple doesn't have even 0.1% market share.
  • Reply 4 of 41
    Roger_FingasRoger_Fingas Posts: 148member, editor
    cnocbui said:
    This seems a bit strange.  If that pie chart is accurate, Apple doesn't have even 0.1% market share.
    Just to be clear, they're only lumped into the "others" category.
  • Reply 5 of 41
    tzeshan said:
    India is dirt cheap.  
    Do you know what the average selling price of Samsung products there is, compared to their other markets? If not, how can you make such a sweeping claim?

    tzeshan said:
    Does Tim Cook realize this is a contradiction of Apple business of maintaining high profit margins?  
    You now more about this than Tim Cook does!? Do you realize that it might just be making you look  stupid, when you say something like that?
    lkrupp
  • Reply 6 of 41
    tzeshantzeshan Posts: 2,351member
    tzeshan said:
    India is dirt cheap.  
    Do you know what the average selling price of Samsung products there is, compared to their other markets? If not, how can you make such a sweeping claim?

    tzeshan said:
    Does Tim Cook realize this is a contradiction of Apple business of maintaining high profit margins?  
    You now more about this than Tim Cook does!? Do you realize that it might just be making you look  stupid, when you say something like that?
    You know what the average selling price of Samsung products there is, compared to their other markets? 
  • Reply 7 of 41
    tzeshantzeshan Posts: 2,351member
    tzeshan said:
    India is dirt cheap.  
    Do you know what the average selling price of Samsung products there is, compared to their other markets? If not, how can you make such a sweeping claim?

    tzeshan said:
    Does Tim Cook realize this is a contradiction of Apple business of maintaining high profit margins?  
    You now more about this than Tim Cook does!? Do you realize that it might just be making you look  stupid, when you say something like that?
    I do not worship Tim Cook.
  • Reply 8 of 41
    The user and all related content has been deleted.
    edited August 2016
  • Reply 9 of 41
    canukstormcanukstorm Posts: 2,665member
    tzeshan said:
    India is dirt cheap.  
    Do you know what the average selling price of Samsung products there is, compared to their other markets? If not, how can you make such a sweeping claim?

    You now more about this than Tim Cook does!? Do you realize that it might just be making you look  stupid, when you say something like that?
    Indians, by their nature, are cheap. They don't value quality. They buy as cheap as possible.
    latifbpracerhomie
  • Reply 10 of 41
    " Main reason is Indian Smartphone companies & retailers are not happy to see "Apple " to enter directly into indian smartphone market . There is lot of Apple users there but they brought there iPhones from retailers & other sources also paying double than the original price thats why its not shows on pie charts .Its not mean they are cheap. I hope apple will open there new stores as soon as possible .......
  • Reply 11 of 41
    lkrupplkrupp Posts: 10,557member
    How much more “fail” do we have to bear? I can’t take it any more! Why is Apple “failing” in mobile but Microsoft is just “cutting back” in mobile? /s
    latifbp
  • Reply 12 of 41
    holyoneholyone Posts: 398member
    tzeshan said:
    India is dirt cheap.  Does Tim Cook realize this is a contradiction of Apple business of maintaining high profit margins?  
    So was China you can't look at India for what it is now but what it's likely to be 10 -15 years from now
    nolamacguy
  • Reply 13 of 41
    holyoneholyone Posts: 398member
    lkrupp said:
    How much more “fail” do we have to bear? I can’t take it any more! Why is Apple “failing” in mobile but Microsoft is just “cutting back” in mobile? /s
    Until apple isn't absorbing over 90% of all the available profits till then just chill and when ever you feel a little panicky from excessive consumption of trash media just remember Apple is about profits not market share that's the Apple SJ built and as soon as that changes then call for Timmy's head till then just apply a strong distortion field like SJ taught you to internet crap
  • Reply 14 of 41
    mac_128mac_128 Posts: 3,454member
    tzeshan said:
    India is dirt cheap.  Does Tim Cook realize this is a contradiction of Apple business of maintaining high profit margins?  
    There are some very wealthy Indians, sitting at the top in percentages that would equate to the iPhone's overall market saturation. Apple needs to figure out how to attract them, and Apple Stores just may be the way.
  • Reply 15 of 41
    tzeshantzeshan Posts: 2,351member
    holyone said:
    tzeshan said:
    India is dirt cheap.  Does Tim Cook realize this is a contradiction of Apple business of maintaining high profit margins?  
    So was China you can't look at India for what it is now but what it's likely to be 10 -15 years from now
    Apple did not do business in China directly 10 -15 years ago. 
  • Reply 16 of 41
    tzeshantzeshan Posts: 2,351member

    mac_128 said:
    tzeshan said:
    India is dirt cheap.  Does Tim Cook realize this is a contradiction of Apple business of maintaining high profit margins?  
    There are some very wealthy Indians, sitting at the top in percentages that would equate to the iPhone's overall market saturation. Apple needs to figure out how to attract them, and Apple Stores just may be the way.
    Wealthy Indians already bought iPhones just like China is doing now.  
  • Reply 17 of 41
    tzeshan said:
    Do you know what the average selling price of Samsung products there is, compared to their other markets? If not, how can you make such a sweeping claim?

    You now more about this than Tim Cook does!? Do you realize that it might just be making you look  stupid, when you say something like that?
    You know what the average selling price of Samsung products there is, compared to their other markets? 
    No I don't. But I am not the one that made the claim. You did. Just asking for data, I am not saying it's wrong.
  • Reply 18 of 41

    tzeshan said:
    Do you know what the average selling price of Samsung products there is, compared to their other markets? If not, how can you make such a sweeping claim?

    You now more about this than Tim Cook does!? Do you realize that it might just be making you look  stupid, when you say something like that?
    I do not worship Tim Cook.
    That response makes no sense. You don't have to "worship" someone to think that, as the CEO of the largest market cap company in the world, he would have some decent marketing research to back up a major market entry decision.
  • Reply 19 of 41
    tzeshan said:
    India is dirt cheap.  Does Tim Cook realize this is a contradiction of Apple business of maintaining high profit margins?  
    Tim describes Apple as an "aspirational" brand.  Thus, growth is in 2 phases:

    • Phase 1:  A small set of wealthy-enough people buy the product and build awareness across the population.
    • Phase 2:  A larger set of people aspire to own that product and -- when they have the money -- eagerly move up to it.

    Guaranteed succesful? No.
    Successful in many countries to-date? Yes.

    Yes, the jury is still out on whether Apple will succeed in India.  Personal, I support their strategy.


    nolamacguy80s_Apple_Guy
  • Reply 20 of 41

    Do you know what the average selling price of Samsung products there is, compared to their other markets? If not, how can you make such a sweeping claim?

    You now more about this than Tim Cook does!? Do you realize that it might just be making you look  stupid, when you say something like that?
    Indians, by their nature, are cheap. They don't value quality. They buy as cheap as possible.
    I am sure you know Indians well. You sound like someone who has done a lot of empirical research on Indians.

    But the last sentence is puzzling: Who buys "as expensive as possible"?
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