Apple Inc's market share in India had gone down considerably, as it was foretold by Steve Jobs himself. With new phones like One Plus overtaking iPhone's many years of reign and with its throne of being India's Elite Brand taken away, Apple had no choice but to rethink its strategy to rule Indian market. This is a short overview report on Apple's overview in Indian Market

1. APPLE OVERVIEW IN INDIA

2. INDUSTRY OVERVIEW
3rd LARGEST
SMARTPHONE
MARKET IN WORLD
124 MILLION
UNITS SHIPPED IN
2017
FASTEST
GROWING
MARKET IN TOP
20 SMARTPHONES
MARKET GLOBALLY
Top 5 Smartphone Market Share 2017
24.7%27.2%
2.5%
7.5%
7.8%
9.4%
20.9%
Others
Source: IDC,2017

3. APPLE’S JOURNEY IN INDIA
• Although Apple’s revenue has increased
drastically overs the years, its growth rate
has gone down drastically.
• There was a 40% increase in iPhone sales
in India, from 2.5 million handsets in 2016
to 3.5 million by the end of 2017.
• The dip in 2016 was however, due to
demonetisation in India. But this is one of
the many reasons.
• Apple ruled the premium market of mobile
phones up until 2016. But its share went
down from 59% to 35% in the same year.
• Brands like One Plus have taken over the
niche market, providing better services in
lesser price.
• Apple performed better in its iPad and
MacBook division.
2004
3057
4500
6472
9937
11618
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
223%
52.6% 47.2% 43.8%
53.5%
16.9%
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
Apple’s Revenue over the Years (in Crs)
Apple’s Y-O-Y Growth Comparison
Source: Business Standard

4. THE MAIN REASON IS THE INCOMPATIBILITY
WITH THE WANTS OF THE CUSTOMERS
• Apple charges too high for the features it provides in a Rs
40,000 plus, which are easily available in the phones below
Rs. 20,000.
• It can be argued that Apple imports all the handsets from
outside India, government levies heavy duties, making the
phones costlier
The Price is Too High
• The built in built apps like Siri and Apple maps have failed to
meet up to people’s expectations.
• The contemporaries like Google maps have the lead in the
segment, making Apple to come up with no reasons to sell
its product.
Apps Incompatibility
• Despite the fact that Apple is costly, it still sells in the
premium class, because of its status.
• Its mainly due to the niche symbol its carries. They are not
affected by the price or the inadequacy of the features of
the phone.
Apple is more a Social
symbol than a
necessity

5. APPLE IS TAKING MANY STEPS TO INCREASE ITS
MARKET SHARE
• Apple has started using e-commerce platforms actively for selling
its products.
• Discounts, buy backs and other offers have prompted many new
users to buy apple products.
Online platforms
• Other than tying up with many local resellers, Apple has plans of
setting up its own local stores all across India to reach as many
people it can.
Retail Stores
• Till now, only iphone 6 and 5, the discontinued models are being
manufactured. Apple is in plans to set up more manufacturing
units, so that more customers can be reached.
Setting up
Manufacturing Unit
in India
• In order to sort out the main reason of the high price, Apple is in
talks with the government to let come up with some possible way
to lower the taxes.
Talks with
Government

6. MY CONCLUSION
• Apple’s India growth had hit a 6 years low in 2017, even with increase in
revenue.
• Apple needs to pull up its socks if it has to survive in a dynamic market, such
as India.
• The high profit margin has kept Apple’s fall at bay, but the stagnant market
share is in danger as many trusted Chinese brands has taken over its share in
the premium segment, which was ruled by Apple.
• The 9% dip in iPhone’s sale is evident that Apple has to change its strategy if
it needs to survive in Indian market.
• As shown in the graph, Apple’s growth rate is falling rapidly. On the surface,
Apple may appear as a niche brand, but the hard reality is that the future
does not seem to be bright in India.
• The reason is simple. Indian customers need products which is value for the
money.
• Barring the 2.5% of the population, most of whom buy apple products as the
social symbol, people are moving away from the glitter of Apple to the brands
which are providing more in half of what the Apple charges for its products
and services.

7. Prepared by:
Manish Singh