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apple just had its best quarter in india

AVATAR Manish Singh
Manish Singh
Reporter, India, TechCrunch
January 26, 2021
apple just had its best quarter in india

During Apple’s earnings discussion on Wednesday, India is anticipated to be a key topic of conversation.

Apple delivered over 1.5 million iPhone units to India in the quarter concluding in December, representing a 100% increase compared to the same period last year. This marks the company’s strongest quarterly performance to date in the world’s largest smartphone market, as indicated by data from Counterpoint and CyberMedia Research.

Driven by strong demand for previous iPhone models – specifically the iPhone 11, iPhone XR, iPhone 12, and the more recent iPhone SE – Apple successfully doubled its market share in India to 4% during the quarter, according to the research firms.

In total, Apple shipped more than 3.2 million iPhone units throughout 2020 in India, a 60% year-over-year increase, as reported by Counterpoint.

This growth in shipments followed the launch of Apple’s online store in the country, which provided customers with a variety of financing and upgrade possibilities, AppleCare+ coverage, and attractive incentives like complimentary AirPods with the purchase of an iPhone 11. The company is also planning to inaugurate its first brick-and-mortar retail location in India later this year.

For over ten years, Apple has encountered difficulties in achieving substantial handset sales in India due to the relatively high cost of its products. The majority of smartphones sold in India fall within the $100 to $200 price range. Samsung, alongside numerous Chinese smartphone manufacturers like Xiaomi, Oppo, and Vivo, have dominated the market over the past decade with their more affordable offerings.

However, Apple has demonstrated a growing interest in India in recent years, recognizing its potential as one of the world’s fastest-expanding smartphone markets. The company’s contract manufacturers now handle local assembly of various iPhone models and accessories, a strategy initiated over two years ago. (A recent incident involving unrest at a Wistron facility in India, one of Apple’s manufacturing partners, highlighted potential obstacles Apple may face as it expands its local production capabilities.)

This local assembly has enabled Apple to reduce the prices of some older iPhone models in India, where the company previously passed on import duty costs to consumers. Currently, the iPhone 12 Pro Max is priced at $1,781 in India, compared to $1,099 in the United States. (Apple has not yet begun local assembly of the iPhone 12.) The AirPods Pro, which retail for $249 in the U.S., were launched in India at a price of $341. Similarly, the AirPods Max are priced at $815 in India, versus $549 in the U.S. (Considering the average annual income in India is approximately $2,000, these prices represent a significant investment.)

In contrast to many international companies that offer their products and services either for free or at extremely low prices in India, Apple has concentrated on a smaller segment of the population with the financial means to afford premium products, according to Jayanth Kolla, chief analyst at Convergence Catalyst, in a statement to TechCrunch.

Despite this approach, Apple has made some adjustments to its pricing strategy for the Indian market. The monthly subscription cost for Apple Music is $1.35 in India, compared to $9.99 in the U.S. The Apple One bundle, which includes Apple Music, TV+, Arcade, and iCloud, is available for $2.65 per month in India.

#Apple India#India sales#Apple revenue#iPhone sales#Apple growth#tech news

Manish Singh

Manish Singh currently serves as a senior journalist for TechCrunch, with a focus on the dynamic startup ecosystem within India and the venture capital funding that fuels it. His reporting also extends to the strategies of international technology companies as they operate in the Indian market. Prior to becoming a part of the TechCrunch team in 2019, Singh contributed articles to a wide range of media outlets, notably including CNBC and VentureBeat, totaling approximately twelve publications. He earned a degree in Computer Science and Engineering in 2015. He can be contacted via email at manish(at)techcrunch(dot)com.
Manish Singh