Last August, we commented on some Apple strategies to revive your participation in the indian smartphone market, including two major changes in the head of operations in the country.
Despite efforts to resume growth in South Asia, Ma still faces problems with sales there, as reported by Wall Street Journal. Among the reasons that led the company to this situation, a factor that impedes the company's growth not only in India, but in other countries, the price.
According to the newspaper report, only one in four Indians owns a smartphone, which would give Apple, in theory, a great chance of selling iPhones to millions of new customers. However, the company's expressiveness in India has decreased in proportion to the amount charged for its devices.
Most smartphones sold in the country cost less than US $ 250, exactly the amount charged by the iPhone SE authorized Apple resellers. Anyone who wants to buy a newer iPhone, therefore, should pay a price (well) above the budget of many Indian customers.
At the heart of the issue is Apple's reluctance to change its traditional business model to sell the iPhone. Instead of making a series of devices, prioritizing a limited number of covered products, sold at high prices is a strategy that revived the company after almost bankruptcy in 1997 and helped make it the first US private company to achieve US capitalization. $ 1 rail.
This resulted, as expected, in successive drops in sales of iPhones in India, which plunged around 40% this year compared to 2017. In addition, Ma now has 1% of the market share before, according to Canalys data, it had 2%.
In addition to strategies, the Cupertino giant has set some goals for the Indian market, such as increasing sales in the country to $ 5 billion by 2020. This year, however, it posted revenue of $ 1.8 billion in the country soon, company needs explosive growth in the coming years to achieve this goal.
As for building the first Apple Store in India, Tim Cook He said he was excited about the future, even with the problems that hinder the opening of stores in the country there, foreign companies need to buy at least 30% of the materials used in the local production from suppliers based in India.
We have had great productive discussions with the Indian government and I hope that at some point they will agree to allow us to bring our stores to the country. We are in contact with them and the discussions are going very well.
Personally, I believe that we are still far from a solution to this problem because, in a way, it has a certain similarity with the Brazilian market (not with the fact that few people around here have smartphones, but rather in Apple's price strategy. ).