5-point something: The next chapter of Apple's India story
Gadgets Now Bureau | Aug 7, 2018, 07:00AM IST
It has been quite a momentous last few days for Apple as it became the first US company to reach the $1 trillion mark in market capitalization. Amidst the hype and hoopla about it, what went under the radar was how below par the company's performance has been performing in India. According to a report by Counterpoint, Apple held just 1 per cent market share in what is considered to be the world’s second largest smartphone market. It has been reported that so far in 2018 Apple has sold less than a million iPhones in India. In comparison, Xiaomi has sold 19 million units during the same time period.
A report by Bloomberg states that the company is gearing up to change its strategy in India in order to boost its numbers. The Bloomberg report states that the Cupertino-based tech giant has devised a five-point strategy for the Indian market.
The first part of Apple’s strategy is to offer year-round deals on its iPhone. It’s no secret that Apple charges a premium for all its smartphones and even devices that are two-three years old cost more than flagship Android phones. This move, according to Bloomberg, will unofficially reduce prices and make iPhone more ‘affordable’.
The second and third aspect of its India plan is to look at its retail strategy. Apple reportedly plans to cut supplies to retailers who don’t meet their sales targets. In addition to this, the company plans to train its retail staff to create more awareness about its iPhones.
Upping the ante on the retail front is the bedrock of Apple’s new strategy for India. The Bloomberg report further adds that the company intends to revamp its in-store displays and work more on branding.
The last part – which perhaps is the trickiest – is to open Apple Stores in cities like New Delhi, Mumbai and Bengaluru. Now Apple Stores aren’t really your run-of-the-mill retail stores as Apple lays a lot of emphasis on everything about them. Foreign companies are required to manufacture 30 per cent of their products locally before ‘setting shop’ in India and Apple doesn’t meet the requirement.
It hasn’t been the best of the quarter for Apple in India as during its recent earnings call CEO Tim Cook failed to even mention the country. India is a fast-growing smartphone market and the Chinese invasion of Xiaomi and Huawei seems to have put more pressure on the trillion-dollar company. How it responds to the challenge and makes up for lost ground is something that remains to be seen.
A report by Bloomberg states that the company is gearing up to change its strategy in India in order to boost its numbers. The Bloomberg report states that the Cupertino-based tech giant has devised a five-point strategy for the Indian market.
The first part of Apple’s strategy is to offer year-round deals on its iPhone. It’s no secret that Apple charges a premium for all its smartphones and even devices that are two-three years old cost more than flagship Android phones. This move, according to Bloomberg, will unofficially reduce prices and make iPhone more ‘affordable’.
The second and third aspect of its India plan is to look at its retail strategy. Apple reportedly plans to cut supplies to retailers who don’t meet their sales targets. In addition to this, the company plans to train its retail staff to create more awareness about its iPhones.
Upping the ante on the retail front is the bedrock of Apple’s new strategy for India. The Bloomberg report further adds that the company intends to revamp its in-store displays and work more on branding.
The last part – which perhaps is the trickiest – is to open Apple Stores in cities like New Delhi, Mumbai and Bengaluru. Now Apple Stores aren’t really your run-of-the-mill retail stores as Apple lays a lot of emphasis on everything about them. Foreign companies are required to manufacture 30 per cent of their products locally before ‘setting shop’ in India and Apple doesn’t meet the requirement.
It hasn’t been the best of the quarter for Apple in India as during its recent earnings call CEO Tim Cook failed to even mention the country. India is a fast-growing smartphone market and the Chinese invasion of Xiaomi and Huawei seems to have put more pressure on the trillion-dollar company. How it responds to the challenge and makes up for lost ground is something that remains to be seen.
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