Apple, the tech giant renowned for its innovative products, is making impressive strides in the Indian smartphone market. From its approach to product launches to increasing accessibility, Apple’s CEO Tim Cook has recognized India as a “huge opportunity” and the company’s strategic moves are paying off. With the company’s market share in India projected to reach 7% by the end of the year, let’s delve into the factors contributing to Apple’s success in this dynamic market.
A Steady Climb in Market Share
Apple’s journey in the Indian smartphone market has been nothing short of remarkable. In 2019, the company held a modest 2% market share, which grew to 4% by 2022. Recent record-breaking sales in the April-June quarter propelled its market share to an impressive 5%. Now, Apple has its sights set on further expansion, aiming to capture 7% of the market by the close of this calendar year.
Tapping into the Mid-Segment Market
India, the second-largest smartphone market globally, is known for its price-sensitive consumer base. As a substantial number of users transition from feature phones to smartphones or upgrade from entry-level devices, the mid-segment category dominates. Phones priced between Rs 7,000 and Rs 25,000 account for over 79% of the market share. The aspirational allure of the iPhone resonates well within this segment, positioning it as a coveted choice among consumers.
Apple’s Strategic Approach
Recognizing India’s immense potential, Apple has poured its efforts into the market. Tim Cook emphasized the company’s dedication, stating, “We ought to be doing really well there, and we are very pleased with our growth there. We still have a very, very modest and low share in this smartphone market, so I think it’s a huge opportunity for us. And we are putting in all of our energies to make that occur.”
Prabhu Ram, Head of the Industry Intelligence Group at CyberMedia Research, concurs, predicting a healthy growth trajectory for Apple in India. Industry estimates suggest that the company could attain a 7% market share in the competitive smartphone landscape.
Success of iPhone 14 and iPhone 13 Series
The recent success of the iPhone 14 and iPhone 13 series has played a pivotal role in Apple’s growing market share. During the April to June quarter, Apple secured a 5% market share, driven by the popularity of these models. Cook affirmed the company’s strong performance in the Indian market during an earnings call, highlighting the achievement of hitting a June quarter revenue record.
A Strategic Shift Towards Accessibility
Apple’s evolution in India has seen a strategic shift towards accessibility. While the company has been selling iPhones in India since 2008, it’s in recent years that they’ve focused on making iPhones more attainable through enticing offers and promotions. These initiatives have effectively attracted a broader customer base, leading to increased sales.
Collaboration with HDFC Bank for financing options and cashback deals, introduction of trade-in programs allowing consumers to exchange old phones for credit towards new iPhones, and discounts on older models during festive sales have collectively contributed to Apple’s success. Reports suggest that approximately 40% of iPhone sales in India now occur online, underscoring the effectiveness of these strategies.
Expanding Retail Presence
Apple’s recognition of the Indian market’s potential has prompted the expansion of its retail presence. Beyond traditional distribution channels and e-commerce platforms, the company launched its Online Apple Store in India in September 2020, even amid the pandemic. This commitment was further solidified with the opening of Apple Retail Stores in Mumbai and Delhi this April. The physical presence of these stores has resulted in increased footfall, translating into higher purchases and sales.
Curbing the Grey Market with Timely Launches
Addressing a historical issue, Apple’s decision to include India in the first phase of its global iPhone launches has curbed the grey market. Previously, iPhones were released in India several weeks after their global launch, prompting unauthorized imports and unofficial sales. By aligning India’s launch with countries like the US and UK, Apple has minimized delays and boosted consumer confidence. This strategic shift also coincides with India’s festive sales season, such as Diwali, capitalizing on increased consumer spending and enthusiasm.
Anticipated Launch of iPhone 15
As the year progresses, all eyes are on Apple’s tradition of releasing the latest iPhone model in September. With the anticipated launch of iPhone 15, likely aligning with Diwali, Apple is set to continue its winning streak in the Indian market. The combination of strategic accessibility, timely launches, and an expanding retail presence positions Apple for further success, paving the way for achieving its 7% market share target and solidifying its presence in India’s tech landscape.
