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The iPhone 12 lineup generated impressive sales for Apple (NASDAQ: AAPL), and the company is expected to dramatically increase production in 2021 to meet strong demand for its 5G-enabled offerings. That’s not surprising, as Apple had a huge user base ready to switch to 5G-capable smartphones – and the company gave them a great reason to take the leap with the well-priced iPhone 12 line-up.
Perhaps more importantly, the iPhone 12 could help Apple push the boundaries in India, an important market where it has always struggled. Let’s see how.
Image source: Getty Images.
Fifth-generation smartphones are about to take off in India
Apple has struggled to capture a substantial market share in India due to its high prices. It held just 2% of the Indian smartphone market at the end of 2019, despite a 41% spike in shipments during the year. The good news is that Apple has built on its 2019 success in India and reportedly shipped 2.5 million iPhones in 2020, making it the company’s best year in the country since 2017.
But that still doesn’t make Apple a dominant player in India, as overall smartphone shipments there were 150.2 million there in 2020, according to Canalys. However, 2021 could turn out to be a much better year for the California company thanks to a sharp increase in 5G smartphone shipments to India.
Counterpoint Research predicts that 5G smartphone shipments in India could grow more than nine-fold in 2021 to 38 million units, from around 4 million last year. Apple is well positioned to take advantage of this massive leap.
Apple could have a nice lift
The 5G-enabled iPhone 12 mini is in one of the fastest growing smartphone segments in the country – devices priced at $ 500 and up. Originally priced at Rs 69,900 (around $ 960 at the current exchange rate), the iPhone 12 mini can be purchased for Rs 47,900 (around $ 660) from Apple’s online store in India after exchange and the like. offers. This makes Apple’s phone roughly on par with other entry-level 5G flagship smartphone offerings in the country.
The OnePlus 8T 5G, for example, costs Rs 42,999 in India. The more expensive OnePlus 8 Pro costs 54,999 rupees, bringing it closer to the post-trade price of the iPhone 12 of 57,900 rupees. Additionally, Apple is expected to start offering iPhone 12s made in India starting next month, a move that could help the company cut prices significantly and make its 5G phones cheaper than its competitors after trade and discounts.
Demand for high-end smartphones in India (that is, those over $ 500) grew 91% year-over-year in the third quarter of 2020, according to IDC. Apple is a major player in this segment, with its premium smartphone market share hovering around 50% in 2020.
A closer look at the list of 5G smartphones on sale in India suggests that most devices are priced above 30,000 rupees (around $ 411), with the exception of a few entry-level devices. Apple could therefore see a significant increase in smartphone shipments to India this year if it continues to maintain its market share in the premium segment.
Meanwhile, there are rumors that Apple has put 5G connectivity in its entry-level iPhone SE this year. Supply chain gossip indicates that the next iteration of the iPhone SE could rock the same A14 Bionic processor that powers the iPhone 12, and that it could launch in the second half of the year. Apple will have a better chance of gaining more of the 5G smartphone space in India if it manages to release a 5G-capable $ 400 iPhone SE.
Overall, it wouldn’t be surprising to see Apple’s iPhone sales take off in India this year and help the company move up the market share rankings. More importantly, Apple could be a big winner in India’s 5G smartphone market in the long run, as shipments are expected to reach 144 million units by 2025 according to a third-party report, making it one of the most important stocks that the investors can buy to profit. The emerging 5G market in India.
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