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Iphone Businesses Apple Hardware Technology

Things Are Going From Bad To Worse For Apple In India (qz.com) 82

An anonymous reader quotes a report from Quartz: Despite its increased focus on India, Apple is all set to see a slower year-on-year growth in iPhone sales in the country in 2018. "iPhone India sales were weak in the first half of 2018, and even if they show a big jump in the traditionally strong second half, Apple will still fall short of last year," Neil Shah, research director at market analytics firm Counterpoint Research, told Bloomberg. Apple has been struggling in India for some time now. In the year ended March 2017, its revenue growth fell to 17%, compared to 53% a year ago. This six-year-low growth was mainly due to a high base and a drop in the average selling price of each phone. Apple's biggest struggle in India has been its high price points. iPhones cost between Rs35,000 ($500) and Rs80,000 ($1,100) in India, compared to the average smartphone price of $157 in the country.

Amid all this, the company is seeing a massive churn in its India leadership. Last December, India head Sanjay Kaul quit after a six-year stint. The company has now reportedly lost three more of its top executives, Bloomberg reported on July 15: national sales and distribution chief, Rahul Jain; head of commercial channels Jayant Gupta, and head of telecom carrier sales, Manish Sharma. The company is also overhauling its India sales team, Bloomberg said, quoting unidentified sources.

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Things Are Going From Bad To Worse For Apple In India

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  • by cdsparrow ( 658739 ) on Monday July 16, 2018 @06:46PM (#56960112)

    They may have a bit better chance of penetrating a lower income market... Iphones are fairly expensive in a country like the US, completely stupid expensive for a country like India.

    • by 110010001000 ( 697113 ) on Monday July 16, 2018 @06:48PM (#56960122) Homepage Journal
      Yeah, they only made 17% more than they did a year ago in India. Is everyone insane? 17% growth is good.
      • 17% growth is great when it is a mature market. 17% growth in a rapidly expanding and growing market is stagnation.
        • Re: (Score:1, Insightful)

          No it isn't. You are selling $800-$1000 devices in a market where the per-capita yearly income is $616! And you are selling 17% more than the previous year, and the previous year you were selling 53% more than the year before! Eventually you run out of people who have $800-$1000 to spend on a device.
          • Apple only have 2% marketshare in India. 17% growth is fucking awful when you are already on the bottom of the pile.
  • by Anonymous Coward

    Apple should know better then to think everyone in these countries makes enough to afford a iPhone. Or can even afford to replace one as often as Apple would like. But to me Apple has never bothered to entertain the lower price market with a phone other then the 5C and frankly there are better and cheaper Android alternatives.

  • by Anonymous Coward

    Why is it a miserable failure unless a company is not only growing but growing faster than before?

    VP: "Hey boss, bad news, we sold more widgets in India this year than we sold in India last year."

    CEO: "Jesus, why is everyone around me so incompetent?!"

  • They're selling a luxury product, facing much more affordable alternatives, in a seriously poor country. And they still managed to move a few million units. Well duh, what's the complaint? The fact that it was not a complete flop should be seen as a victory.

    • Re: (Score:3, Insightful)

      by Anonymous Coward

      India has some of the poorest people. They also have a middle class that is larger than the entire US population.

      • Except for some college-going students, I don't think I've ever seen any Indian willing to go stand in a line overnight to buy an Apple product. I don't think most of us worship brands (many worship personalities, but that's a different story).

        To most people:
        • - A phone is a phone.
        • - What does a ridiculously expensive Apple phone do that my affordable Samsung won't do?
        • - My phone still works, why would I buy a new one?
        • Your point is true, but the situation's actually even worse, as ultimately what does the Samsung do that a feature-comparable-but-much-cheaper Chinese phone won't do? Not much. Hence Samsung has "only" about 28% market share in India (while Apple don't even make the market share pie chart, getting bundled into "Others"), while Chinese brands dominate (https://www.thenewsminute.com/article/chinese-brands-dominate-indian-smartphone-market-51-share-q1-2017-report-62166) ... Apple's a ripoff, Samsung less so, b

  • by Applehu Akbar ( 2968043 ) on Monday July 16, 2018 @07:26PM (#56960276)

    When Indians have a problem with their iDevices, they get shunted to a Bay Area call center whose people speak in thick California accents and who insist on trying multiple approaches based on their training, rather than following comfortable scripts in the manner that local people are used to.

    • by Agripa ( 139780 )

      When Indians have a problem with their iDevices, they get shunted to a Bay Area call center whose people speak in thick California accents and who insist on trying multiple approaches based on their training, rather than following comfortable scripts in the manner that local people are used to.

      Whoa dude! That is totally bogus!

  • You're selling one of the most ridiculously priced, 1st world phone in a 3rd world country. Gee, what can go wrong?

    In all likelihood your execs are quitting because once employed they come to a realisation of how detached from reality your sales targets are.
  • by Anonymous Coward

    That shit is old af.

    • Why stop selling a product that sells, especially in markets like India, and has a headphone port?

      Seems to me a lot of Slashdot commenters look for a headphone port on their phones. Seeing another phone with a headphone port be taken off the market is another signal other phone makers would follow and drop their products with a headphone port.

      Also, when Apple announced the end of sale for the old style MacBooks with USB-A and MagSafe they got complaints. I guess this just shows again that someone will com

  • by Anonymous Coward

    How does one compete with Xiaomi in smartphone market in india without doing what samsung did?
    Samsung is set to build largest smartphone factory in the world to to india. I bet you it's not going to produce Galaxy S series. It will be producing low and mid range phones, some probably exclusive to India. That's not something easy to do for apple, because trump wants factories in US.

    It's all about price there.

    • That's not something easy to do for apple, because trump wants factories in US.

      What Trump wants and what Trump gets will not always coincide. Also, it's not like Apple is incapable of creating more than one factory for their devices. Apple opened a factory in India to avoid import duties, so it's been done before.

      It's all about price there.

      Which is why Apple was willing to open a factory there. If Trump and his friends in DC want to see cheap Apple products in the USA then it would be to their benefit to fix the laws that discourage domestic rare earth metal mining. China has a near monopoly on vital rare e

  • by Anonymous Coward

    A lot of people who have used apple now hate it. And the reason has been bad policies and wicked pricing strategies, and totally lack of quality control in service centers. I have been sort of discussing this with people who switched

    There was no option to replace batter or screen earlier. Its available now.

    The price in India is very high, compared to what it should be for a 3rd world country.

    People are realizing that high battery life is not due to better tech, but is due to low resolution display that ipho

  • Luxury products in India like Apple should pace scale of sales to realistic acceptance levels which is quite modest now and next few years. Likewise on investment. India will grow in time but the departing Execs might have over committed to achievements or vice versa Apple on investment, growth and compensation. It is odd that folks would leave a premium employer like Apple as if there were many viable other options. Maybe Apple's pay for performance drove away Execs who thought they could coast thru exploi

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