Apple's major defeat in the Indian market is mainly because it is too expensive

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The cumulative shipments of smart phones across the Indian market this year are expected to reach 139 million, and most of them are low-end Android products that sell for less than $150. From the performance of the current quarter, Android device shipments accounted for 97% of the total, and it is very difficult for Apple to change this situation in the future.

For Apple, the biggest factor affecting sales is undoubtedly the price. Although India is the world's most promising smart phone market, the market size has increased by 29.5% from 2015 to 2016, but the average price of smart phones is less than 70 US dollars. Even the cheapest iPhone is four times higher than this average price.

Although Apple has repeatedly tried to reduce the price of the iPhone, but it turns out that no matter how Apple adjusts, the price of the iPhone is still too expensive. In order to maintain high profit margins, it is inconsistent with the price of smart phones in the entire Indian market.

Apple also tried various strategies such as the sale of government-turned products and local operator subsidies in the Indian market, but it still encountered many problems. In the Indian market, most consumers prefer to buy direct-selling, unlocked versions, and few users are willing to enjoy operator subsidy strategies.

Apple CEO Cook visited India earlier this year and said in an interview with a local television station that due to the local tax structure, it also affected the sales of the iPhone. In India, operators hardly sell smartphone hardware, and all products are sold through retailers or small stores.

However, this does not mean that Apple has lost its appeal to Indian consumers. According to a report issued by Canalys analysts in May, in the high-end market, Apple still poses a strong challenge to Samsung in India. In the first quarter of this year, Apple's share of smart phone products above $300 increased from 11% to 29%, while Samsung dropped from 66% to 41%. Although the overall share is small, it still has potential.

Cooke said that the current Indian market is a bit like "China from seven to ten years ago." Apple will continue to build and improve localization services, accelerate investment in the Indian market, and encourage Indian local developers to develop related products. It seems that Apple intends to wait for another “seven to ten years” for the Indian market. Therefore, considering the uncompleted infrastructure market, the current situation should still be acceptable. (Author: James Vincent compilation: Rabbit)

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