Apple loses three Indian executives as company struggles with iPhone sales
Three high-level Apple executives in India have reportedly left the company, amid signs the company is liable to see local iPhone sales decline even further in 2018.
Apple's Indian division has lost its national sales and distribution chief, the head of its commercial channels and mid-market business, and the head of carrier sales, according to Bloomberg sources. One person indicated that the division's sales team is in restructuring.
Apple CEO Tim Cook has often tried to paint India in a positive light, for instance saying he was "very optimistic" about the company's prospects. But the iPhone has had a single-digit marketshare in India for years, a result of the company's unwillingness to build cheaper models to compete with the likes of Samsung and Xiaomi, and the fact that until recently it didn't assemble any phones locally. The iPhone SE and iPhone 6s are manufactured there.
Local production is critical, since tariffs on imported electronics exacerbate the already high prices of iPhones. Most Indians can't afford a state-of-the-art iPhone, which has led to Apple focusing on older models, sometimes ones unavailable in other countries.
"iPhone India sales were weak in the first half of 2018 and, even if they show a big jump in the traditionally strong second half, Apple will still fall short of last year," said Counterpoint research director Neil Shah. The company is said to have sold 3.2 million iPhones in 2017, and less than a million in the first half of this year. Its current marketshare is just 2 percent.
The Bloomberg sources put some of the blame on Michel Coulomb, who took over Indian operations in December and has allegedly been slow to foster business relationships. The people also, however, reiterated long-running complaints that Apple has had trouble understanding the Indian market.
On top of this Apple is in a "Catch-22 situation," Shah added. "It has not put great focus or investments into India because the market is so minuscule."
Apple's Indian division has lost its national sales and distribution chief, the head of its commercial channels and mid-market business, and the head of carrier sales, according to Bloomberg sources. One person indicated that the division's sales team is in restructuring.
Apple CEO Tim Cook has often tried to paint India in a positive light, for instance saying he was "very optimistic" about the company's prospects. But the iPhone has had a single-digit marketshare in India for years, a result of the company's unwillingness to build cheaper models to compete with the likes of Samsung and Xiaomi, and the fact that until recently it didn't assemble any phones locally. The iPhone SE and iPhone 6s are manufactured there.
Local production is critical, since tariffs on imported electronics exacerbate the already high prices of iPhones. Most Indians can't afford a state-of-the-art iPhone, which has led to Apple focusing on older models, sometimes ones unavailable in other countries.
"iPhone India sales were weak in the first half of 2018 and, even if they show a big jump in the traditionally strong second half, Apple will still fall short of last year," said Counterpoint research director Neil Shah. The company is said to have sold 3.2 million iPhones in 2017, and less than a million in the first half of this year. Its current marketshare is just 2 percent.
The Bloomberg sources put some of the blame on Michel Coulomb, who took over Indian operations in December and has allegedly been slow to foster business relationships. The people also, however, reiterated long-running complaints that Apple has had trouble understanding the Indian market.
On top of this Apple is in a "Catch-22 situation," Shah added. "It has not put great focus or investments into India because the market is so minuscule."
Comments
Blame the local middle-managers !
A buyer for an Apple product will pay the price and soon Apple is going to produce in India.
There's plenty of other countries in the world with more wealthy people. That is where Apple needs to expand.
Ban India!
The only soluftion is to get the best iPhone like iPhone X entirely made in India. Will Apple do that for India market?
I am an Indian and I can tell you why Apple will never reach a double digit Market Share in India.
1. Although Indians are riding on the 4G wave and this is Huge Market!!!!, 45 ~ 50% of Indians including myself use dumbphones(Feature Phones) as our Primary Phones, as we find these Phones incedibly cheap, easy to find, easy to get it repaired, have a ridiculously long Battery back up(sometimes upto a week without Charging!!) quite handy and serves the purpose.
2. The people do buy smartphones but are incredibly witty and spend a lot of time asking people, asking Shop keepers, finding out the specs, making a spec wise comparison of the phones on the Internet and researching a lot before deciding to buy something!(sometimes for months on end!!!)
3. When I can buy a Monster with 3 GB RAM, massive 5.5 Inch screen, 32GB Internal and 128GB expandable storage, carved out of high grade Aluminium, having the latest processor and running the latest Nougat or Oreo at 1/3rd the Price(Rs 8000 or $116) of an Iphone(Rs 25000 or $365), Why should I buy an iphone which has 1GB Ram, is almost 3 years old, 4.7" screen with 32GB Storage and No external Storage at all?
4. Even Samsung is finding it very hard to compete in India and is loosing their Market share at an epic pace to a host of domestic and Chinese Companies. I think the only companies understanding the Indian temperment and the Market is Xaomi, Lenovo, Micromax, Huwei etc etc etc.
Unless, of course, you can provide a cite. Cite (assuming you know what that word means).
Also, when I traveled to China in the 1990s I was surprised by how third world it was — mud hut villages, people living in caves...But it’s growing up now. That’s why Apple skates to where the puck is going, not where it is.
The real challenge is to get these potential users to think behind the spec wars and understand how APple adds value rather than cost to peoples lives.