Declining iPhone sales in India is a sign Apple is failing to adapt its business



  • Reply 41 of 41
    goofy1958 said:
    Seriously? Apple is failing because of cheaper competition? Bullcrap people talk always is annoying... Apple's pricing relative to rest of the world and India is the issue - a 999$ Note 9 sells for 999$ equivalent in India but a 999$ Iphone Xs sells for 1400$ in India, the new macbook air is almost twice as expensive as the old one it replaces in India, it is infact cheaper to buy a non-touchbar retina macbook pro in India, the one that was never updated this year. India isn't a poor country, neither is the country behind cheap products but we are not stupid enough to invest crap loads of money for no reason... Just a foot note - iPhone Xr, starts at 1050$ in India and they wonder why they can't crack the market...
    So why does the Note 9 sell for the same price, but the iPhone has a huge tariff on it?

    Good question. The answer is that Samsung is willing to cut their margin to sell at the same price.  That is how Samsung is able to keep the same price in India compared to overseas.  Samsung is desperate for sales around the world.  They now have probably less than 2% of the China mket.  In November 2018, Samsung’s share of the U.S. market dropped 21% from 24.85% in November 2017 to 19.39%.  Apple, other hand, rose 12% from 55.41% in November 2017 to 62.01% in November 2018.

    Until recently, Apple had a rigid retailing approach but this year they changed their approach to launch the expensive XS and XS Max phones first, followed with more affordable XR, and then introduce legacy 6S, 7, 8, and X phones through third party retailers, and then refurbished phones at very competitive prices to catch as customers as they can before Christmas.  By staging their launches, they allow people who are able to buy the latest and best iPhones first, then those who want almost the best but at a lower price, and then harvest the bottom feeders with refurbished iPhones. 

    Apple should continue to invest in India for the following reasons.  First, many Indians are actually buying their iPhones overseas.  Every Indian coming home from abroad probably has several iPhones in their suitcase.  Apple has to provide repair services in India.  To do that, they need to continue to sell iPhones in India.  No Indian in their right mind would buy an iPhone in India plus tariffs when he/she can buy an iPhone in Dubai or Singapore for 30% less.  


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