Apple, the most profitable company in the world, offers an iPhone that accounts for 60% of Apple’s annual revenue, one of the most valuable products. In many countries worldwide, iPhone sales rose from $1 million in 2007 to $231 million in 2015. The iPhone and its entire ecosystem has enjoyed a great deal of success.
Sales for iPhone
iPhone sales have been flat for the last couple of years and were not much of an exception, general smartphone sales have been decreasing due to smartphone saturation; where the average man has a smartphone that doesn’t sell to any manufacturer.
Since Apple is a public company, the iPhone sales must grow every year to keep shareholders happy, since it has demands to meet.
Apple could either sell new iPhones with its very first-time smartphone, change users from competing brands or upgrade their smartphones by current iPhone users.
India, which is home to a population of 1.3 billion, is set to strike China and become by 2024 the world’s most populous country.
India’s economy is a potential bubble, its GDP among the most rapidly growing in the world, and around 44 Indians are emerging from extreme poverty every minute.
American companies such as Google, Uber, Microsoft, Apple and Amazon have been excited about the path of people coming out of poverty. India can now supply 1,3 billion potential customers to these companies; many of them first use the Internet and computers.
Apple’s plan to expand to emerging markets like China has been fairly successful, but Apple has not done so well, despite India being one of the few regions that does not endure a smartphone saturation.
In 2018, Apple lost three key Indian executives, failed to reach its regional annual sales target, and was hit by high India smartphone tariffs. It is evident that, for several reasons, Apple struggled in the region.
The high price of the iPhone
In 2016, the brand new Apple iPhone 7 started out at $650 about a year later. The starting price of the iPhone X was $1000, an increase of $350 from the model of last year.
The smartphone ‘budget’ of Apple 2020 is $50 more costing the iPhone 11 than the iPhone 7 flagship in 2016.
Because of the drastic increase in iPhone prices, Apple has reported a profit increase which is compensating for a slow down in the sales of units, but in India.
75% of all the smartphones sold around the region cost less than $250, while the 95% cost less than 500, which is why the flagship phones of Apple, which Apple normally operates, are ultrapremium
Visit to India by Tim Cook
Despite Tim Cook’s visit to India seeking tariff reductions and promising to manufacture if sold in India at some point in the future, the Indian government refused the offer and also made Apple’s sales in India harder. The Indian Government refused.
In order to produce low cost smartphones that have specifically adapted to the Indian market, Smartphone manufacturers like Xiaomi, Vivo, Oppo and Samsung either opened or invested at smartphone manufacturing facilities in India.
The software experience for iPhones
The experience with the iPhone software in India is still less good than it is in places like the United States. Services like Apple Pay have not been initiated in India without a robust software experience. The user experience is still inadequate, although Samsung Pay and Google Pay operate for some time in the region.
Most of the Apple Maps were missing and turn by turn navigation had only been introduced in 2019. Siri’s always had western difficulties, but in India it’s worse. Maps of Indian accents in India are extremely difficult to understand. Well, boo-hoo – just figure it out – or do you find out for Siri and Alexa?!
How can Apple solve the real problems?
Apple always made profit a priority over market share; it never was its goal to own the largest part of the market share. In India, Apple should be alarmed that it loses millions, if not trillions of potential customers. In India, its market share is only 2%.
For Apple’s development, it is vital to acquire new smartphone users, because existing users are more valuable than one. Customers buy Airpods, Apple Watch and soon Apple AR lenses to boost all services. Any product from Apple is designed to grow users with Apple Music, iCloud and Apple TV subscriptions.
More problems than an iPhone
In addition to hardware, Apple needs to take other things into account. In India, Apple software is mainly missing so that Apple needs other services such as Maps, Virtual Assistant, Siri, Start and Apple Pay for the region. The Indian market has a great deal of software knowledge, so Apple may want software specifically designed for the Indian market.
Apple needs to change its approach and adapt it to the Indian market in order to expand into the Indian market. Apple wants to produce locally manufactured devices, with improved features that are available at an affordable price tag.
Until they do this they will continue to use more attractive and attractive devices with characteristics and a cheaper price point.