Cheap smartphones besting Apple, Samsung in growing Indian market sales

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  • Reply 21 of 44
    apple ][apple ][ Posts: 8,575member


    The article in the OP gives the impression that Apple is not doing well in India, but how do they explain this article from today?


     


    Apple has taken second place in the large and growing smartphone market in India by using a clever workaround on its pricing. 


     


    Samsung, true to form, quickly copied the plan right down to the details shortly after it was unveiled,



    http://www.electronista.com/articles/13/04/12/samsung.quickly.copies.plan.in.effort.to.counter.apple

  • Reply 22 of 44
    apple ][apple ][ Posts: 8,575member

    Quote:

    Originally Posted by firhill07 View Post


    Check these two articles when you get a chance. Based on nominal GDP model, India stands 9th highest in the world and based on Purchasing Power Parity model, India stands 3rd highest in the world. Perhaps that's what you mean't  by "3rd world"? 3rd in the world!


     


    Nominal GDP


    http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)


     


    By GDP (PPP)


    http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)



    When the average person is making $1219 per year, they obviously don't have much to spend on any phones.


     


    India's per capita income (nominal) is $ 1219, ranked 142nd in the world,[1]


     


    http://en.wikipedia.org/wiki/Income_in_India


  • Reply 23 of 44
    "Apple wrote:
    [" url="/t/156938/cheap-smartphones-besting-apple-samsung-in-growing-indian-market-sales#post_2309552"]

    The average is an irrelevant number. The potential market size is MASSIVE, with a middle class that will exceed the population of the US (or even the EU) in be next couple of decades.

    It would by silly for Apple to not position itself to capture this market. Read this, for instance: http://www.mckinseyquarterly.com/Tracking_the_growth_of_Indias_middle_class_2032
  • Reply 24 of 44
    philboogiephilboogie Posts: 7,438member
  • Reply 25 of 44
    kdarlingkdarling Posts: 1,640member



    Quote:

    Originally Posted by Apple ][ View Post


    The article in the OP gives the impression that Apple is not doing well in India, but how do they explain this article from today?


     


    Apple has taken second place in the large and growing smartphone market in India by using a clever workaround on its pricing. 



     


    That was discussed here not long ago.  Apple has second place by revenue, due to its high prices.  It's a low fifth place in number of sales, again due to its high prices.  That's even after quadrupling iPhone sales in the past few months via incentives such as trade-ins.


     


  • Reply 26 of 44
    apple ][apple ][ Posts: 8,575member

    Quote:

    Originally Posted by anantksundaram View Post





    The average is an irrelevant number. The potential market size is MASSIVE, with a middle class that will exceed the population of the US (or even the EU) in be next couple of decades.



    It would by silly for Apple to not position itself to capture this market. Read this, for instance: http://www.mckinseyquarterly.com/Tracking_the_growth_of_Indias_middle_class_2032


    I don't disagree with you.


     


    I'm not saying that Apple should pull out of India. There is a shitload of people in India, and even if only a certain percentage of them can afford iPhones, that's a lot of phones. I'm trying to say that Apple should not concentrate their efforts on the low end of the market, because I don't believe that they could ever win that market, since even Android is being undercut by cheaper phones.

  • Reply 27 of 44
    apple ][apple ][ Posts: 8,575member

    Quote:

    Originally Posted by PhilBoogie View Post





    Slight correction on the link, for which I thank you:

    http://www.electronista.com/articles/13/04/12/samsung.quickly.copies.plan.in.effort.to.counter.apple


    Thanks. I fixed the link in my post also, in case somebody else were to click on it.

  • Reply 28 of 44
    alfiejralfiejr Posts: 1,524member

    Quote:

    Originally Posted by Chandra69 View Post


    These Micromax and Karbonn mobiles are Android powered. And, they have their own hardware plants. Micromax comes with front camera of 2 MP and back camera with 8 MP.  People who can buy Android phones can buy these Micromax phones.  They even make Tablets. Open Hardware Alliance is the key.


     


    Also... whatever Android can do... like full featured web browser etc.  And also, they come with extendable memory.  The thing is like... people who can buy iPhone and Galaxy, they are buying them.  But people who want to have smartphones and cant afford these two, definitely buy these Micromax and Karbonn mobiles.  They are good.  But not to the best of iPhone or Samsung. My friend's brother over India is using their tablets too! :)



    thanx for the info. what app store do they use, media store and so on?

  • Reply 29 of 44
    jb510jb510 Posts: 124member
    Interesting scenario...

    Currently in the US there isn't much (any) incentive to buy a non-subsidized phone since monthly rates are the same either way. The difference tends to be if you're on a 2 year cract or not, and most people this as irrelevant as they have no intention of going without phone service at any time in the next 2 years.

    A cheaper mobile that could be sold unsubsidized AND coupled with a lower monthly rate could be extremely attractive and disruptive to the US market. Wondering if this isn't already on T-Mobile's roadmap...
  • Reply 30 of 44

    Quote:


    Originally Posted by KDarling View Post


     


    Apple ....is a low fifth place in number of sales, again due to its high prices.  That's even after quadrupling iPhone sales in the past few months via incentives such as trade-ins.


     




    That just implies that the growth -- and profit -- opportunities are enormous. All it needs is some solid local Apple presence, and somewhat lower prices (that match the world average).

  • Reply 31 of 44
    kdarlingkdarling Posts: 1,640member

    Quote:

    Originally Posted by anantksundaram View Post


    That just implies that the growth -- and profit -- opportunities are enormous. All it needs is some solid local Apple presence, and somewhat lower prices (that match the world average).



     


    Yep.  Apple just needs to be willing to take a per device cash profit margin hit in return for more total revenue through sales quantity, similar to what they did with the iPad mini.


     


     Low cost smartphone market to hit $135B in 2013.


     



     


    Will they do it?  Who knows.

  • Reply 32 of 44

    (deleted)

  • Reply 33 of 44
    spaceraysspacerays Posts: 116member

    Quote:

    Originally Posted by Apple ][ View Post


    I don't disagree with you.


     


    I'm not saying that Apple should pull out of India. There is a shitload of people in India, and even if only a certain percentage of them can afford iPhones, that's a lot of phones. I'm trying to say that Apple should not concentrate their efforts on the low end of the market, because I don't believe that they could ever win that market, since even Android is being undercut by cheaper phones.



    Jeez Apple ][, Micromax and Karbonn smartphones run Android. So Android phones arent being undercut by 'other' cheaper phones.



    As for Apple's iPhone price strategy, ofcourse quality comes first. But that doesnt mean they cant reduce prices. Apple is just taking a fat profit margin. iPad and iPad Mini sell for really good price by feature ratio. And comparable Android tablets took a good time reaching that range. And still dont sell as much. Hopefully the rumored lowcost iPhone becomes a reality.

  • Reply 34 of 44
    apple ][apple ][ Posts: 8,575member

    Quote:

    Originally Posted by spacerays View Post


    Jeez Apple ][, Micromax and Karbonn smartphones run Android. So Android phones arent being undercut by 'other' cheaper phones.



    As for Apple's iPhone price strategy, ofcourse quality comes first. But that doesnt mean they cant reduce prices. Apple is just taking a fat profit margin. iPad and iPad Mini sell for really good price by feature ratio. And comparable Android tablets took a good time reaching that range. And still dont sell as much. Hopefully the rumored lowcost iPhone becomes a reality.



    Ok, so it was Samsung phones that are being undercut by other cheaper Android phones.


     


    As for the rumored cheap iPhone, I guess we'll see what happens.

  • Reply 35 of 44
    jungmarkjungmark Posts: 6,679member
    That's $840 (at current exchange rates) for a "starter" iPhone 5, which can be had fully unlocked in the US for almost $200 less. The local carriers are not just not providing subsidies, but they are actively screwing their consumers. It's no wonder Indians are not buying.

    When/if Apple expands its direct presence in India, and if they price at US levels, watch the market share zoom. In other words, no need for the cheap stuff.

    Doesn't India have some kind of import tax?

    Regardless, the cheapie vendors are making less money than Apple in India.
  • Reply 36 of 44
    customtbcustomtb Posts: 336member
    If my math is correct.... You could buy the 4000 rupee phone.... Immediately trade it in to apple.... And save 3000 rupee
  • Reply 37 of 44
    That's $840 (at current exchange rates) for a "starter" iPhone 5, which can be had fully unlocked in the US for almost $200 less. The local carriers are not just not providing subsidies, but they are actively screwing their consumers. It's no wonder Indians are not buying.

    When/if Apple expands its direct presence in India, and if they price at US levels, watch the market share zoom. In other words, no need for the cheap stuff.

    This is not carriers pricing the phone, but Apple and distributors!! subsidised contracts were tried in India and failed badly. Btw Apple have MAJOR influence on the pricing setting in India.
  • Reply 38 of 44
    jungmark wrote: »
    Doesn't India have some kind of import tax?

    Regardless, the cheapie vendors are making less money than Apple in India.


    Correct the Import tax is also driving up the price of unlocked phone, carriers not the enemy, but Indian Government, Apple and their Distributors!!
    Before any jumps down my throat and say Apple hater, better jump my history on this forum!
  • Reply 39 of 44
    res08haores08hao Posts: 114member
    th people who buy these phones also ride oxen.
  • Reply 40 of 44


    You are misinformed my friend TATA Nano cost Rs.1,25,000 on-road that's around $2500 and whoever is saying third world countries can't afford expensive (put Apple here) phones are only partly right,entry level Apple iphone 5 16GB cost around Rs.46,000 ($824.78 at current exchange rate) and that's outright cost no handset subsidies(i have iphone 5 64 GB i paid Rs.60,000 around $1,100 for it),how many of you paid hard cash for your iphones?yes it's true only certain percentage of people would go for iphone in India but there are many reasons for that other than price-tag and Android phones are selling like hot cakes,Micromax is an Indian company which provides decent spec'd phones at very competitive price i'm providing links of local online shopping store for reference,good day.


     


    1.Micromax


    http://www.flipkart.com/micromax-canvas-hd-a116/p/itmdjhwueg4jvtsx?pid=MOBDJSG2SVNDGR72&ref=c56878c0-4c60-45be-a1d5-f3c50e8e3544  - $293.25 at current exchange rate.


     


    http://www.flipkart.com/micromax-ninja-a89/p/itmdjjguxchngshz?pid=MOBDHZZRGFHB7JRY&ref=5a7f78fd-91d5-469a-83cc-8fc839821216  - $119.13


     


    2. Apple


    http://www.infibeam.com/Mobiles/i-Apple-iPhone-5-16GB-Smartphone/P-E-M-Apple-iPhone-5-16GB.html  - $824.78

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