Why Apple is Failing in India

why Apple is failing in India

One of the most popular companies in the world Apple Inc. has been growing constantly since 2008. But, Apple is not able to capture market in India.

There are many US companies in India able to capture the market properly. Amazon, Google, Microsoft and Facebook are the world’s most popular tech companies in the world which are able to capture the market in India.

If we discuss these four companies in China, Google and Facebook are banned. So, there is no hope for these two companies.

But, Apple Inc. didn’t able to grow even though they are selling their smartphones for a long time in India.

For giant companies like Amazon, Google, Microsoft, Facebook and Apple, India is the most emerging market.

Today, we will understand why Apple owns only 1% market share in Indian smartphone industry.

7 Major Reasons Why Apple is Failing in India:

1. Old Smartphones:

After the force of Indian government, Apple finally started manufacturing iPhones in India.

But, they are manufacturing old smartphones. These include iPhone SE and iPhone 6 which are very old phones of Apple.

Most people who buy smartphones in India are aware about at least the newest products in the market. That’s why there are less people who prefer to buy iPhone SE and iPhone 6.

2. Price:

The Indian market is price sensitive. We all know the price of all the Apple products is expensive but in India, the price is the key factor to attract more consumers.

Average Indian spends less than $250 for buying a smartphone. The lowest price of an iPhone is $650. So there is a huge difference in average price and price of iPhones.

3. Xiaomi, OnePlus and Samsung:

Xiaomi and Samsung have captured a large part of the Indian smartphone industry. According to CNBC, Xiaomi owns 27% and Samsung owns 22% of smartphone market share in India.

Also read: 11 Reasons How Xiaomi Succeed in India

These two companies are selling budget smartphones(5k to 20k Rs) mostly.

One of the biggest reasons of decreasing sales is OnePlus. OnePlus is selling flagship smartphones in India at the cheapest rates.

In order to that, people tend to buy OnePlus instead of iPhones.

Also, Lenovo, Motorola, Oppo and Vivo are leading players in budget smartphone market.

4. Taxes:

There is a huge difference in pricing if the smartphone is bought from the USA and India.

For instance, the cheaper iPhone XR starts at $749(approximate 52,500 INR) in the USA. In India, the price of the same phone is $1096 (approximate 77,900 INR).

This thing is happening because of huge taxes for the companies which are not manufacturing smartphones in India.

Also, the older smartphones of Apple, iPhone SE and iPhone 6 sold in India for much higher price 17,000 Rs and 22,000 Rs.

5. Apple Stores:

Apple has established a giant Apple stores in all the developed countries which attract so many consumers.

In India, there are no such big Apple stores.

6. Feature Phones:

India is still an emerging market for smartphone industry because many people in India still use feature phones.

7. Specifications:

As we have discussed earlier, the cost of Apple phones is too high that a middle class Indian cannot simply afford to buy an iPhone.

Indians always believe that phones should be value for money.

Most of the specifications that Apple provides are available in flagship phones of OnePlus, Samsung and Xiaomi.

Also read: 7 Fundamental Reasons Why Apple Products are Always Expensive

Conclusion:

Apple simply cannot reduce price for India. But, they can afford to plant huge manufacturing unit. By doing this, the company will not need to import phone in India that’s why it will reduce the tax rate.

Samsung has developed the world’s largest smartphone manufacturing unit near the national capital of India, Delhi.

The company can also reduce the price of smartphones but that thing is not in their DNA.

Watch this video for more information…


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About Anuj Vohra

Hi , I am Anuj Vohra. Founder of Itsfacile.com & Saral Investment.

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4 Comments on “Why Apple is Failing in India”

  1. But whatever you say Apple has some standard no matter Apple sales in India or successful in India but the user of the Apple is how disappointed by the product and service of the Apple what you say ?

     
    1. There is no doubt that Apple makes world class products. But in this article, we have discussed only Apple India.

      We as an Indians love to purchase ‘value for money’ products which means the price of a smartphone should be less and specification should be high.

      Apple only focuses on flagship smartphones.

       

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