Why Apple is Failing to Make Sales in India

In this digital world, the mobile phone has a great influence on our day to day life. Through this, anybody can contact or stay connected to others from every corner of this globe.

The introduction of smartphones had contributed more features not only in mobile but in tablets, smartwatches, and 2-in-1 PC, etc.

As per the list of mobile phone usage and connectivity in country wise India stands second place next to china. World’s top mobile manufacturing companies like Samsung, Xiaomi, and Micromax, etc.

have reported a huge sale in India. But many other reports state that the world’s most high-ended featured smartphone manufacturer Apple Inc. faces major setbacks on sales in the Indian market.

In this article, we will explore the Apple phone and it’s failing in the Indian market with reason.

About Apple Inc.- Introduction

Apple is an American Multi-national company founded in April 1, 1976, by Steve Jobs with Steve Wozniak and Ronald Wayne, manufactures computer hardware, software, and various mobile devices headquartered at Cupertino, California, USA.

The company’s first product was the Apple I which is a computer and later expanded to other electronic devices.

In 2001 company opened apple store a retail store for marketing their own products and in 2007 company introduced iPhone which is a touch-screen based smartphone recognized to be an innovative invention of 21st century with its all-time Operating system iOS created by them itself and also in same year company renamed to Apple Inc.

Apple had acquired great achievements such as well-known for world’s technology company by revenue of $265 billion and has 137000 employees and operates around 500 retail stores in 25 countries as per 2020, it is the world’s third-largest mobile phone manufacturer after Samsung and Huawei.

In 2020 it is estimated that around 1.5 billion apple products are used worldwide and also ranked as the world’s most valuable brand.

In addition to all, it operates the world’s largest music retailer called iTunes store and also received a high level of brand loyalty.

However, the company also receives many criticisms based on various factors such as source material, unethical business, and other factors, etc., in recent years it also faces a severe reduction in sales and shipments in some parts of the world including in India.

Sales of Apple Phones in India

Apple introduced the iPhone to India in 2008, a year after it was launched in the U.S. Apple occupies India’s premium smartphone market with a share of 75.6%.

Apple sells its products in India through partnered third-party offline retailers and e-commerce platforms like Amazon, Flipkart, and Paytm mall, etc.

Apple aims to ship around 1 million iPhones to the Indian market every year.

In 2006 Apple shipped 2.6 million iPhones in India and totalized growth of over 50 percent compared to its previous year.

Apple Inc. is also focused on developing features for Indian customers, including maps and other products, creating over 4,000 job opportunities.

Apple is planning to place big bets on the Indian market. They tried to increase their manufacturing efforts in the country.

Last year, Apple had started production of iPhone XR in India for the domestic market and exports.
In addition to that Apple now plans to reduce its dependence and production on China as a manufacturing hub due to the trade war of the US and the Covid-19 pandemic and they decided to shift one-fifth of its production capacity from China to India.

Causes of failing to make sales in India

Even though Apple is Tech giant and planning to invest in India, the sales of Apple phones are drastically reduced to only $1.8 billion in which is less than half Apple’s goal for the year.

The shipping of iPhone reduced to 40 percent and thus resulted in the dropping of 1% in Apple’s market share.

The decrease in the sale in the Indian market is due to the following reasons

  1. Expensive

It is one of the major reasons for slowing down sales in India unlike America and Europe an average Indian with minimum income couldn’t afford the price of the iPhone and thus it is forced to focus on rich people.

  1. Competition from Chinese and other smartphones

Indian markets are flourished with cheap Chinese goods and Chinese other smartphone-like Xiamoi and Samsung is also manufactured with similar features of iPhone at an affordable rate which attracts Indian customers more.

 

  1. No Indian manufacturing

Till now there is no manufacturing unit of Apple in India and the majority of their exports to India are from China and the Indian government imposes about 20 % of the increase in import duties and thus resulted in an increase in price which is not affordable to common customers.

  1. No Apple stores in India

This is also can be considered as a reason for falling of sale in India at presently Apple sells their products in India through partnered third-party offline retailers and e-commerce platforms like Amazon, Flipkart, and Paytm Mall, etc. which is also contributes for an increase in the price sometimes the price will be more than that of Apple store.

  1. Low battery life

It is estimated to have low battery life inexpensive IPhone which can also be the reason for neglecting the iPhone by Indian customers.

How to recover this failure in the Indian market?

If Apple didn’t make necessary alternation in its sale in India they will face a major setback for neglecting one of the world’s largest markets.

There are two ways that can be followed to establish a strong base in the Indian market they are:

  1. By opening a manufacturing unit  

There are numerous benefits by setting up a manufacturing plant in India such as Professionals and laborers are available at relatively cheaper costs and eliminate the extra import taxes etc.

  1. By marketing with social strategies

 Customize the experiences of the customer and making Apple feel like a part of the Indian by influencing the social factors.

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