So, you weren’t too impressed by Apple’s record-breaking quarterly sales figures just because they are global numbers. You feel that Apple might be minting billions in other countries, but their performance in India in underwhelming. Well, dear friend, prepare to be surprised because Apple sales in India have broken quite a few records too!
According to Counterpoint Research, Apple India sold over 2.5 million units in 2016. More than one-third of these shipments were made in the last quarter (October to December). Apple CEO Tim Cook personally announced that the last quarter of 2016 was the best ever for Apple Sales in India. Impressed now, are we?
The Demonetisation Effect
Here’s an interesting paradox.
We’d reported earlier that over 1 lac iPhones were sold in India within 3 days of the demonisation announcement. So the currency replacement move should have boosted Apple sales in India, right? Mr Cook doesn’t think so. He feels his company faced a setback, just like most businesses in the country. He said “It’s still definitely having some overhang. But I think in the longer term, it’s a great move.”
It’s important to note that almost all of the reported 1 lac iPhone sales were cash transactions with people trying to get rid to their soon-to-be-redundant currency. There’s a good chance that these numbers were wild estimates, and it’s equally possible that Apple doesn’t want to go on record to say that it pocketed people’s ‘black’ money. Shhh!
Right Market Share
There is no guessing which part of the smartphone market appeals the most to Apple. It’s always been a premium product, especially in India. Therefore, judging Apple’s success in terms of the total market share in India (which lingers around a mere 2%) is a bit unfair. The real test is how well it does in the premium segment (above Rs. 30,000). The numbers there are staggeringly different! Apple ended the last quarter with 62% of the market share, followed by Samsung at 35% and Google Pixel at 5%. iPhone doesn’t come across as dud in India anymore, does it?
Not just iPhones
iPhones are by far the top grossing product for Apple in the Indian market. However, it would be wrong to underestimate the contribution of Macs, iPads and other Apple devices. The sale of these non-iPhone categories is steadily growing in the country and it’s playing a noticeable role in the growing revenue numbers.
This point was highlighted by Luca Maestri, Apple’s chief financial officer, when she mentioned that Apple sold a record number of Macs in the last quarter, thanks to the double-digit growth in many countries, including India.
Future is Even Better
While these are mighty impressive numbers, it’s just the tip of the iceberg when you see the immense growth potential for Apple sales in India. Tim Cook is well aware of this and has been regularly talking about India as the next big market for Apple.
The deal of iPhone manufacturing in India is almost a done deal. We are also expecting the iconic Apple Stores to open in 3 Indian cities within this year. An Apple sponsored startup hub in India has already been announced. There’s also a new Apple office coming up in Bengaluru. All these are testimonies to Apple’s growing love for India.
Just two days ago, Tim Cook said, “We are in discussions on a number of things, including retail stores, and fully intend to invest significantly in the country and believe it’s a great place to be”.
We agree with you Sir!
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Source: Economic Times
