India is the second (after China) largest market of mobile devices in the world. That’s why Apple wants to increase the sales of iPhones in our country. However, all attempts to improve the situation bring the opposite results. Apple sold less than a million iPhones in India in the first half of 2018. This is a very low result, as 3.2 million Apple smartphones hit the Indian market in the whole 2017 year.
Tim Cook hopes that India will be the second China for Apple. Currently, most iPhones are sold in the United States, but China is the second biggest market for Apple. In contrast, India is a very large market, which in terms of the number of mobile devices is chased only by China. However, iPhones represent only a small percentage of smartphones sold in India. Apple’s share in this market is only 2%. The reason for the low popularity of iOS devices among Hindus is obvious. It’s about prices. In India, manufacturers of Android smartphones (one of the most popular is Xiaomi) offer devices from various price ranges. That’s why old iPhones are more popular in India than new models.
Apple is about to restructure the Indian sales department
Bloomberg’s journalists cite anonymous informants who claim that Apple intends to rebuild the entire Indian department responsible for sales and marketing. Three managers were also fired. Of course, the exchange of staff alone will not help in the sale of iPhones. Apple needs to change its strategy to reach better-paid people. After all, in China we are also dealing with a very diverse material status of the society, and the iPhones are selling very well. That’s why Tim Cook made sure that some iPhone models could be manufactured locally in India. Currently, they are iPhone SE and iPhone 6s. Thanks to this, Apple could have reduced prices of these models. The Indian government values locally produced products very much. Therefore, high tax is imposed on smartphones imported from abroad, which this year has been raised to 20%. That’s why Apple had to raise retail imported iPhones by 6% – 7%. However, iPhones produced (or more precisely “folded”) locally are free of this tax. A similar treatment was also used by Samsung, which in India has the largest of its factories.