Why has Apple failed in India? - GoTechTalk


Sunday, September 9, 2018

Why has Apple failed in India?

Why has Apple failed in India?

If we look at the statistics iPhones are popular around the world taking a look at iOS market share would give us a good gauge on average iOS takes eighteen point ninety one percent of  the mobile operating system market share if we look at iOS market share by region iOS usage is the highest in North America and Oceania which amounts to forty eight percent followed by Europe in which iOS occupies twenty-four point zero six percent of smartphone market share in both Asia and South America iPhone occupies around 10 percent and lastly in Africa iPhone takes seven percent of the market.

Well you might say India is a developing country and iPhones are expensive so obviously more people in the developed nations will purchase an iPhone than people in the developing nations you're probably right but for that let's look at BRIC countries Brazil Russia India and China in Brazil iPhone takes eleven point five seven percent of the market in Russia iOS takes 23 point five one percent in China iOS takes twenty one point nine six percent and finally in India iOS occupies only a whopping two point nine percent even lower than the average of Africa, so obviously there's something strange something deeper going on it's not just about GDP per capita or economic development, so what is it about??.

Well first of all admittedly price does play a big role in India especially with so many cheaper alternatives available from the Android side, iPhone 10 in the United States cost 999 dollars but it cost over $1,300 in India after import duty and currency conversion that's a 30 percent premium one of the highest in the world, Apple tried to avoid this premium by opening up its own Factory in India but it only managed to do so last year and it decided to produce low-end SE version of iPhones Washington Post commented on this move and said by marketing inferior products it may also be insulting Indian customers, I have my differences with Washington Post from many matters but I agree with them on this fully, secondly Apple is facing some very unconventional and aggressive competitors just in the last three years the Chinese has taken over India by landslide with their localized strategy traditionally Samsung has a strong lead in the Indian smartphone market but this situation is changing very rapidly Xiaomi has just taken over Samsung to be the lead smartphone seller in India and 2017.

Oppo and Vivo strategy of opening stores everywhere is also paying off they're pushing their smartphones very aggressively by providing high-profit margins to sellers and as a result sellers favored selling Oppo and Vivo phones because they make more per Oppo and Vivo sold, this new business model is disruptive to the status quo of the industry and is proven to be very effective in populous countries like China and India because rural customers like to hold and feel the phone before buying it yet flagship smartphone stores do not reach the vast majority of villages in China or India, facing this unconventional co petition from the Chinese, Samsung is quick to adapt and started opening stores in rural areas Apple is not therefore despite team cook being very vocal about his plan to conquer the India market Apple has been failing to do so, lastly if it comes to the key factor that prevents Apple from succeeding in India I think it's Apple itself Apple has been successful in sticking with its Godin brand but to the vast majority of new customers in India over 50 million Indians will own a smartphone for the first time in 2018 Apple's brand means nothing to them, they like to look at specs features and iPhone is hardly superior in that regard and perhaps most importantly Apple strengths in other markets has made Apple unable to change and adapt in India.

India is a diverse country culturally religiously and linguistically and therefore it requires agility from the Apple site to accommodate these differences for example app stores require credit cards to pay for apps but according to the same Washington Post article only 1% of the Indian population have credit cards additionally Apple music is also considered inferior compared to its local competitors such as Saavan and Gaana, what about Siri it hardly recognizes Indian accent Apple's other products like the Mac is just outrageously expensive for the market, my point is what Apple does well in other countries to lock in its  customers doesn't work in India on the contrary I'm seeing the opposite happening right now with 2.9 percent market rate Apple will find more and more of its potential customers getting familiar with the Android system and with Samsung, Xiaomi and Oppo  as a result Apple will find it even harder to penetrate the Indian market in the future when these customers choose to upgrade their phones under the same Android brand because of the familiarity a few years down the road the reverse will happen to Apple in India when people get comfortable with Google's ecosystem with Google Assistant Google Documents Play Store and perhaps Google home, Apple will find it even harder to be popular in India.

Apple is a great brand a brand that is associated with perfection user friendliness and creativity but in India Apple has hit the wall if it's not willing to bend certain rules not willing to adjust to the diverse culture and language in India Apple is in trouble. 

Alright, guys, that's the end of the blog, thanks for reading the whole way through if you enjoyed this blog please share it with someone who would be interested and leave a comment, Thanks for reading guys.

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