Apple’s China growth can trump India woes

“India has been a source of frustration for Apple for years,” Jon Swartz reports for Barron’s. “Stymied by high tariffs (15% to 20%) that have prompted Apple to market less-expensive iPhones that are a few generations old, compounded by competition from cheap alternatives from Samsung Electronics and Xiaomi, Apple has underperformed in the world’s fastest-growing smartphone market.”

“The malaise was highlighted in a report in Bloomberg this weekend of a shakeup in Apple’s executive ranks in India amid single-digit market share,” Swartz reports. “Gone are the national sales and distribution chief, head of commercial channels and mid-market business, and head of telecom carrier sales, according to Bloomberg, citing people who asked not to be identified.”

“Investors need not fret: Apple’s recent surge in China should offset shortcomings in a country of 1.32 billion people. Analysts have downplayed India’s significance in their earnings projections for Apple,” Swartz reports. “‘India remains an uphill climb for Apple and this latest news [executive departures] adds to the challenges, although the growth story ahead for Apple is all about China,’ Daniel Ives, head of technology research at GBH Insights, tells Barron’s. He predicts a 15% to 20% jump, year-over-year, in Apple’s business in China for its June quarter.”

Read more in the full article here.

MacDailyNews Take: The problem is that India will not allow Apple to sell Apple Certified Refurbished iPhones, iPads, and other Apple products.

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?MacDailyNews, May 25, 2016

SEE ALSO:
Apple again asks Indian government to allow sale of certified refurbished iPhones in India – February 6, 2017
Indian IT minister says Apple plans to make iPhones in Bengaluru – February 3, 2017
Apple nears deal to manufacture products in India – January 25, 2017
Apple is ready to make iPhones in India, for a price – January 20, 2017
India to consider Apple request for tax breaks and policy exemptions with ‘open mind’ – January 18, 2017
Apple is horse-trading mightily with India – January 4, 2017
India poised to reject manufacturing concessions for Apple – January 3, 2017
Apple doesn’t want India’s government to muddle iPhone’s look – December 29, 2016
Apple is discussing manufacturing in India, government officials say – December 20, 2016
Apple iPhone grabs first place in India with 66% of premium smartphone sales – November 29, 2016
Apple seeks government incentives to set up manufacturing unit in India – November 7, 2016
iPhone 7 and 7 Plus launch in India: Apple’s latest flagship gets record-breaking response – October 8, 2016
Reports of Apple’s death in India are greatly exaggerated – August 5, 2016
India clears path for first Apple Retail Store – July 21, 2016
Indian government expected allow Apple Retail Stores without any sourcing requirement for 2-3 years – June 6, 2016
Indian government discussing waiver to permit Apple Retail Stores – May 30, 2016
Blow for Apple and Indian consumers as Indian government pushes protectionism – May 25, 2016
Blow for Apple and Indian consumers as Indian government pushes protectionism – May 25, 2016
Apple hits setback in push to open retail stores in India – May 24, 2016
Apple’s U-turn in India: From arrogance to servility – May 23, 2016
Apple finds potential new factory hub – in India – May 23, 2016
Apple’s Tim Cook samples Bollywood, cricket, in bid to woo India – May 21, 2016
India shows Apple CEO Cook the love it’s yet to give the pricey iPhone – May 20, 2016
Apple CEO Cook: ‘We are in India for the next thousand years’ – May 20, 2016
Watch Apple CEO Tim Cook at his first cricket game in India – May 19, 2016
Apple opens Maps development office in Hyderabad, India – May 19, 2016
Apple CEO Cook debuts in India – May 18, 2016
Apple to open first-of-its-kind iOS App Design and Development Accelerator in India – May 18, 2016
Tim Cook visits India: Apple to expand its Indian software development center, build local start-up accelerator program – May 17, 2016
Apple Retail Stores to open in India by end of next year – May 16, 2016
iPhone sales surge 56% in India as Apple eats into Samsung’s high-end share – May 8, 2016
Apple deprivileged as India bows to Washington D.C. consensus on mobile phone import tariffs – May 7, 2016
India rejects Apple’s plan to import and sell refurbished iPhones – May 3, 2016

4 Comments

  1. I understand protectionism, but India doesn’t make a 1st class smartphone, so they aren’t losing any local manufacturing by allowing Apple in and selling at high prices.

    Why not import iPhones?

    Makes no sense.

    1. India wants companies to develop a high-tech manufacturing base in their country. Ultimately, that might be a good way for Apple to diversify from China and grow their iOS market at the same time.

  2. Why would Indian consumers buy iPhones if their annual salary is around $1000 a year. It doesn’t seem to come as a surprise to me. It makes smart sense that Indian consumers are satisfied with using $50 Android smartphones. Was Apple ever really expected to have high iPhone sales in India? There’s no reasonable solution Apple could ever have for selling expensive iPhones to financially-handicapped consumers. Every other smartphone manufacturer understands this except Apple. Sell to the Indian consumer a smartphone they can reasonably afford.

  3. India is heavily over rated, it is a market Apple should stay out off. The democratic Indian government dont want Apple there and that should be indication enough for Apple to give this place a miss instead of ploughing through. Apple has enough profits and dont need any more. Get out of India, the quicker the better. Apple is better off in China where the gears are made anyway

    @MDN, your take is incorrect, selling refurbished phones will not be enough.

    Also where are the brainless Pro India supporters now, especially AlanAudio? What have they got to say? I say let India have cheap google phones, it is suited for them and a match made in heaven. Apple is too rich for poor Indians

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