Forget China: India Is Apple's Most Disappointing Market

[beijingwalker]

Forget China: India Is Apple's Most Disappointing Market
Sales of iPhones in the country plunged 50% in 2018.

Jan 19, 2019 at 12:36PM

n early January, Apple (NASDAQ:AAPL) warned that its revenue would fall 5% year over year during the first quarter of fiscal 2019, compared to a prior forecast for 1% to 5% growth, due to soft sales of iPhones -- particularly in China. The shocking guidance cut sent bulls scrambling, since the Greater China region generated nearly a fifth of Apple's revenue last year.

Investors have paid less attention to India. Apple once considered India to be its next major growth market. After all, the number of smartphone shipments in India surged from 80 million in 2014 to 150 million in 2018, according to Counterpoint Technology Market Research, and rising income levels in the country should have boosted demand for iPhones. Yet demand for Apple's products has hit a brick wall in India, according to Counterpoint.

The firm reported that Apple's iPhone shipments in India more than doubled from 1.5 million in 2014 to 3.2 million in 2017, but plunged roughly 50% to just 1.6 million to 1.7 million units in 2018 -- or about 1% of India's smartphone market. Counterpoint attributed the drop-off primarily to the high prices of Apple's latest models and tougher competition. Discounts on older iPhones, zero-down-payment offers, and cash-back plans also failed to attract new buyers.

A market ruled by cheap Android devices
Indian smartphone users clearly favor cheaper Android devices over iPhones, so Chinese OEMs like Xiaomi, Oppo, and Vivo; Indian OEM Micromax, and South Korea's Samsung rule the market. Here's how their market shares shifted between the third quarters of 2017 and 2018:

martphone
Manufacturer

Q3 2017
Market Share

Q3 2018
Market Share

Xiaomi(NASDAQOTH:XIACF)

22%

27%

Samsung(NASDAQOTH:SSNLF)

23%

22%

Vivo

9%

10%

Micromax

6%

9%

Oppo

8%

8%

Others

32%

24%

https://www.fool.com/investing/2019/01/19/forget-china-india-is-apples-most-disappointing-ma.aspx

 

[Tshering22]

Too expensive, especially when android rivals from China and Korea are offering better tech at cheaper prices. iPhone has lost its sheen and while it did create the 'notch' craze, full displays and foldable phones are the future. Apple would probably charge a car's price for the same type of tech with half the specs.

 

[oprih]

Good, apple is an overpriced junk.

 

[nahtanbob]

Forget China: India Is Apple's Most Disappointing Market
Sales of iPhones in the country plunged 50% in 2018.

Jan 19, 2019 at 12:36PM

n early January, Apple (NASDAQ:AAPL) warned that its revenue would fall 5% year over year during the first quarter of fiscal 2019, compared to a prior forecast for 1% to 5% growth, due to soft sales of iPhones -- particularly in China. The shocking guidance cut sent bulls scrambling, since the Greater China region generated nearly a fifth of Apple's revenue last year.

Investors have paid less attention to India. Apple once considered India to be its next major growth market. After all, the number of smartphone shipments in India surged from 80 million in 2014 to 150 million in 2018, according to Counterpoint Technology Market Research, and rising income levels in the country should have boosted demand for iPhones. Yet demand for Apple's products has hit a brick wall in India, according to Counterpoint.

The firm reported that Apple's iPhone shipments in India more than doubled from 1.5 million in 2014 to 3.2 million in 2017, but plunged roughly 50% to just 1.6 million to 1.7 million units in 2018 -- or about 1% of India's smartphone market. Counterpoint attributed the drop-off primarily to the high prices of Apple's latest models and tougher competition. Discounts on older iPhones, zero-down-payment offers, and cash-back plans also failed to attract new buyers.

A market ruled by cheap Android devices
Indian smartphone users clearly favor cheaper Android devices over iPhones, so Chinese OEMs like Xiaomi, Oppo, and Vivo; Indian OEM Micromax, and South Korea's Samsung rule the market. Here's how their market shares shifted between the third quarters of 2017 and 2018:

martphone
Manufacturer

Q3 2017
Market Share

Q3 2018
Market Share

Xiaomi(NASDAQOTH:XIACF)

22%

27%

Samsung(NASDAQOTH:SSNLF)

23%

22%

Vivo

9%

10%

Micromax

6%

9%

Oppo

8%

8%

Others

32%

24%

https://www.fool.com/investing/2019/01/19/forget-china-india-is-apples-most-disappointing-ma.aspx

India is Android country. It is too late for Apple to make any kind of inroads

 

[Menthol]

I think Apple products are out reach by the majority of Indian.

But one thing that I can make a conclusion about this case is... I don't know whatever Indian dislike Apple products or they are just simple not having many wealthy people in India??

I think if the second is the case, it just shows how worse India economy actually is.

 

[casual]

Apple haven't innovated any new tech in there smartphones yet they want to charge over $1k. Kinda ridiculous.