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Global smartphone sales are down, according to a report from IDC's market information company. Smartphone sales fell 4.1% last year and the sector is still expected to suffer a severe blow in 2019 due to weak key markets such as China. All this worked Appleof (NASDAQ: AAPL) iPhone sales.
India should however oppose the widespread slowdown of smartphones in 2019, sales should increase by 13%, according to research firm TechArC analysis. The premium smartphone segment (priced above $ 700) is expected to post the strongest growth at 27%. Not surprisingly, Apple is now taking serious steps to make itself felt in this market.
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Apple makes a very necessary decision
Apple began making older models of iPhone in India two years ago, but is about to add new models. FoxconnApple's contract manufacturer, will start producing large-scale iPhone models in the Indian market at the end of this year, according to Bloomberg.
According to the report, Foxconn is about to begin production trials of new iPhone models in India before large-scale operations are launched at a facility outside Chennai at the end of this year. This marks a shift in strategy by Cupertino, which is desperately trying to break into the Indian market because of its growth potential.
Earlier, Apple had been trying to break into India with a peddling strategy of older iPhones, believing that the relatively low price of models such as the iPhone 6 and the iPhone SE would help boost sales . But this decision had the opposite effect: Indian customers have preferred devices from Chinese manufacturers, such as OnePlus, which offer impressive features at unbeatable prices.
Existing Apple's facilities were not equipped to produce the latest iPhones, which were imported to the Indian market. The lack of local manufacturing for devices such as the iPhone X, XR, XS and others required a very high price, because of a 20% import fee.
For example, the price of the 64 GB iPhone XR is $ 749 in the United States, but the same model was launched at a price of just over $ 1,100 ($ 76,900 Indian rupees) in India. But due to weak sales (Apple shipped only 1.7 million iPhones in India last year, down nearly 50 percent from the previous year), the company was forced to reduce the price of the XR to 59 900 rupees (about 861 USD at the current exchange rate).
Even if it is significantly more than the price of the XR in the United States. On the other hand, SamsungThe latest Galaxy S10 starts in India at just over $ 960, while the same device costs $ 900 in the United States. So there is not a big difference between the price of Samsung's flagship device between the United States and India.
Samsung operates the world's largest mobile device manufacturing plant in India. As it locally manufactures appliances for the Indian market, it does not have to pay customs duties on imports. In addition, the South Korean giant holds 34% of the high-end smartphone market in India, according to Counterpoint Research.
Once Apple starts producing its latest phones in India, it will have a chance to improve its sales by setting more competitive prices for its devices. This could help offset the weakness seen in other markets.
Take India seriously
Local manufacturing is not the only way for Apple to find its place in the Indian market. According to a recent report, Apple could prepare a 4.8-inch device with an end-to-end AMOLED display.
Foxconn reportedly began manufacturing the device in India later this year. If this actually happens, Apple will be able to offer a competitive price to its device in order to make a difference in the mid-range smartphone market in India.
Building a new mid-range iPhone in India would be a wise move by Apple because the company would be able to target a larger market and integrate more users into its ecosystem . It could offer its future premium smartphones to these customers because the buying power of Indian consumers is expected to increase steadily due to the country's strong economic growth.
It's not too late for Apple
Apple has long ignored the Indian market while it focused on China and other regions, but it still has time. whitefish It is estimated that the number of smartphone users in India will increase from 404 million in 2017 to 829 million in 2022.
Apple can still make a difference if it moves quickly. Given the huge opportunity in India, the success could increase its sales of smartphones, which had tarnished in the long term.
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