With the advent in technology, we have seen huge amount of innovation that have been brought in by various manufacturers. Although some of the devices range up to acquire a significant market share, while the others just perish with minimal responses. As more and more Android handsets take the Indian market by storm, Apple’s failure to sustain iPhone sales in India is a big problem for the company. The sharp fall in sales comes despite the sustained marketing campaigns, advertising discounts schemes and other monthly installment options that have been made available for the customers in India.
Based on Strategy Analytics, it is understood that India is growing four times faster than the global average, accounting for 163% year on year growth across India in Q1, compared to 39% expansion by the worldwide smartphone volumes. It is indicated that India’s market is rising quicker than China (86% YoY), Japan (24% YoY), the US (19% YoY ) over almost all other major countries.
Previously, iPhone sales had soared to a large extent just after the November launch of iPhone 5. After the initial October- December period, the iPhone sales in India plummeted to new lows after the initial spell. Also, according to IDC reports back in March it was depicted that Apple was gaining in India. This was due to the introduction of EMI plans and buyback schemes for the customers. It had resulted in increasing Apple’s monthly sales from 70,000-80,000 units a month to as much as 400,000 units.
This turnaround was a significant one as Apple had grabbed 15.6 percent of India’s smartphone market by revenue in Q4 2012. With the availability of Android powered devices at affordable rates, Apple has been pushed back with current market share. Given the pace at which Android market is growing, the manufacturers like Micromax, Spice, Samsung, HTC, Nokia, LG are doing a great job by offering decent phones at reasonable prices and they have densely populated the Indian smartphone market.
According to Strategy Analytics, it is regarded that the homegrown mobile makers are flourishing with a growth rate of between 200% and 500% on an annual basis. Considering that the Indian market is a price sensitive market, individuals will think twice before being lured away by the outrageous price tags of the Apple products. It is obvious that Apple’s loyal fans will invest in such a product irrespective of the price, but other individuals will ensure that they find better deals at good affordable prices. Probably a change of tactics can assist the progress to widen the access to Apple’s premium priced products vs the Android-powered competition.
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