“With slowing iPhone sales in China, Apple Inc. is having to take India more seriously, but investors hoping for a stock price fillip from CEO Tim Cook’s week-long Asia trip instead were given a taste of the daunting challenges that lie ahead,” Himank Sharma and Matthew Miller report for Reuters.
“While the numbers in India suggest huge potential – fewer than two in every 10 of the country’s 1.3 billion people have a smartphone – the world’s fastest growing major market operates differently to other markets where Apple has enjoyed stellar growth and high margins. Apple’s traditional model is to sell its phones at full price to local telecoms carriers, which then discount them to users in exchange for charging them for data as part of a multi-month contract. Not so in India,” Sharma and Miller report. “‘In India, carriers in general sell virtually no phones and it is out in retail – and retail is many, many different small shops,’ Cook told analysts recently. ‘Because smartphones there are low-end, primarily because of the network and the economics, the market potential has not been as great,’ added Cook, likening India to the Chinese market 7-10 years ago.”
“With per capita income of $1,570 as of 2014 and the average smartphone selling for less than $90, a third of the global average, India’s market growth is predominantly led by cheaper phones. High-end smartphones – costing from $300 – make up only 6 percent of the market, or just 6 million units, according to Morgan Stanley,” Sharma and Miller report. “Rebuffed by India’s government in its plan to import and sell used, refurbished iPhones, Apple has seen only slow growth in a market dominated by Samsung Electronics and Chinese brands.”
Read more in the full article here.
MacDailyNews Take: Again, the people of India should realize that their government isn’t helping them by blocking affordable Apple Certified Refurbished iPhones, it’s forcing them to settle for inferior, insecure, derivative fragamndroid crap.
India should approve Apple’s plan to sell Apple Certified refurbished iPhones in India. Not only would they be affordable to more consumers in India, Apple’s refurb’ed iPhones are easily better than competitors’ new phones! Why keep the Indian people shackled to inferior iPhone knockoffs when they could have the real thing?
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