Apple Is Failing To Make An Impact On The Indian Market & Is Losing Its Key Employees
Apple is the most decorated brand in the 21st century. Their products include iPhones, Apple watch, iPods, Macintosh, Apple TV and many more. According to the latest reports, Apple generated revenue of around $61 billion. Samsung is the main competitor of Apple regarding smartphones. Dell, HP, Lenovo are giving heavy competition to Apple laptops.
In India, Apple is facing competition in all sectors including smartphones and laptops. Three highest level executives in Apple Company have quit. Strategies incorporated by them fail to create an impact on the Indian market.
Tim Cook, CEO of Apple stated several times that India has a greater scope of development and we want to focus on the Indian market. The prices are the only barrier between the Indians and Apple iPhones. With the cost invested in a single iPhone, people can buy around 5 Android smartphones with decent configurations. Why do you think prices are high in the Indian market? It is official that few of executives of Apple have left the job. What may be the reasons? What is the strategy of Apple to improve their market in India? Read on to find the answers.
The reality of Indian Market
Six years ago in India, there were a few big names when it comes to smartphones like Apple, Samsung, HTC, and Sony. Apple anyways is out of reach for many people. The mid-range smartphones manufactured by brands like Samsung, Sony, and HTC, were doing great in the market. People with iPhones used to steal the spotlight. This comfort situation is long gone.
Then, brands like Xiaomi, Vivo, and Lenovo had entered the market. Initially, the sale was low, but as new models were released with better configuration, people started to show interest. The result is unbelievable. Xiaomi sold 2.11 million smartphones in just 24 hours after its release online and set a Guinness world record in 2014. Other brands have also impacted the market which reduced the sales of Samsung and Apple.
While Samsung recovered, Apple also gained profits overall, but sales of iPhones are radically dropping every year. Apple is facing fierce competition in the smartphone market and is yet to make an impact in India.
The news is that few officers leading a key job role quit the company. Their identities are unknown yet. The people who left have the following job roles.
- Head of telecom carrier sales
- Head of mid-market business and commercial channels
- National sales and distribution chief
The reasons for departure are unknown, but few believe that sales of Apple products in India may be impacted by their decision to quit. They are enjoying profits, but the sales are affected by the cut-throat competition.
Why Is The Price High?
We agree that iPhones are costlier compared to any other smartphones available in the market. But coming to India, we get the same iPhones with a price tag of 40% more than the actual cost. Taking an example of iPhone X 64 GB, the value is around $999 in the US. It is available in India at a price of Rs. 89,000. This price when converted to dollars, it gives us around $1,388 which is 39% more than the actual amount to be precise.
The high prices are not the fault of Apple. The government has raised tariff rates on imported gadgets to encourage local manufacturing. This step also forces global brands to develop products in India, itself. This is one of the reasons newly released iPhone SE 2 was assembled in Wistron facility located in Bangalore.
Price of SE 2 is around Rs. 39,999. Even though the price is high, they started assembling in India which is a good start.
The only way to avoid high pricing is to manufacture the iPhones in Indian facilities. Even then, mobiles will cost more for a middle-class person to buy. This step will also force to reduce the prices of new releases. Taking into account all the problems, Apple has come up with a new strategy.
They are planning to sell refurbished iPhones in India at lower prices. This step is expected to bring more people to Apple family. You can check out the official website about the refurbished phones which are 15% lower than new mobiles.
Apple is not only about overpriced products. The design, performance, quality, and reliability of products will describe what an Apple brand is all about. Apple can generate lots of revenue if they focus more on the Indian market.