How Change in Strategy Helped Apple Watch Record iPhone Sales in India

Sales rose to 2.3 million units in the fourth quarter, up 34% from a year ago, according to data from market research firm Counterpoint. of china xiaomi corp and South Korea samsung The electronics company sold 9.3 million and 7.2 million smartphones respectively for the quarter, leading in terms of units.

Apple appears to have pulled in more revenue than any of its rivals, however, due to the iPhone’s higher price tag, according to Counterpoint’s calculations. The US company took in an estimated $2.09 billion for the quarter, outpacing Samsung with nearly $2 billion in revenue.

Neil Shah, Mumbai-based Partner and Head of Research, Counterpoint Technology Market Research, said, “This is a turning point for Apple in India. Indians were more inclined to spend money on premium phones during the pandemic as everyone’s life revolves around their devices. Turned around and had nothing else to spend.”

While Apple has become the world’s most valuable company on the popularity of its iPhone, it has struggled in the 1.3 billion-person India market. Pricey iPhones are far out of reach for many local consumers, a situation exacerbated by harsh import duties Apple had to pay on devices made outside the country.

In 2018, the company stumbled through several top-level executive departures in the country, declining sales and upsetting retail partners who opposed its online discounting practices. Apple sold 1.8 million iPhones for the full year, which is less than the number of iPhones sold in the most recent quarter.

Since then, however, the technology giant has almost made a face in the strategy. It has opened its own India online store, streamlined discounts and started local manufacturing of iPhones. The company is planning to open company-owned retail outlets in several cities in the coming quarters.

Most recently during the October-December period, India’s festive shopping and gifting season, the phone maker priced its original iPhone 12 model at under Rs 50,000 ($668), offering cashback incentives and easy payment plans. were done.

In a country where per capita income was less than $2,000 in 2020, Apple is still a tough sell, according to World Bank data. According to Counterpoint, for the most recent quarter, the average iPhone selling price in the country was $908, while Samsung’s was $278 and Xiaomi’s was $172.

While Apple’s market share has climbed, it remains in the single digits for the quarter at just over 5%. Indians bought 44 million smartphones in this period.

The market has challenges beyond price. Apple Manufacturing Partners, Foxconn Technology Group and Wistron Corp. has suffered a setback in India due to its treatment of workers. The US company took the unusual step of putting a Foxconn factory on probation near the south Indian city of Chennai after protests over food safety and housing standards.

In addition, the country’s antitrust regulator, the Competition Commission of India, has started an investigation into App Store fees.

This story has been published without modification in text from a wire agency feed.