Apple Continues to Struggle in India as iPhone Sales Drop 35 Percent in 2016

[Thunderhawks]

Go look at actual population stats around the world. There is large bubble/cohort heading towards retirement and elder hood in developed nations.

Not sure where you are getting your information (The 1970's? Delusional documentaries?), but pretty much any credible population graph shows a clear inversion, and you will start to notice it in the 2020's.

Did that some time ago within another thread.

But, not to be ignorant, one doesn't need to look at stats.

My comment is for the situation NOW.

When there are countries which cannot take care of their people, provide food, clean water, jobs, have too many elders, basics not working etc.

There are just too many people.

Be that in the Favelas in Brasil, India's slums, Africa or any places with slums in USA.

 

[r3m1]

But Apple wants to sell cheaper phones.

Remember this MacRumors headline from May?

India Turns Down Apple's Request to Sell Used iPhones

Yes, why should India allow Apple to sell used iPhones? In the Netherlands Apple received a slap on the wrist from the courts for exchanging iPhones that are under warranty with refurbished iPhones.

Apple can't have its cake and eat it too.

 

[iamtheonlyone4ever]

every time i see this news the only thing that comes to my head is that Nadella is from india. and is like the indian people don't support apple because they are with Microsoft because Microsoft CEO is from india. that's why they don't support apple because they are supporting Nadella. because they don't want to betray their brother, another reason might be that Microsoft is cheaper.

 

[vault]

Well I think it will matter eventually. Don't you think companies will invest in products and services that have more market share? Thinking of Apple Pay, AppleTV, Siri and a lot more... Apple's maps, ApplePay and AppleTV don't work here quite well because 90% here is on Android and it's not on Apples priority list to make it work. In the meantime we have very good Google (Android) offerings what works very good. So if it isn't hardware what's better but also the services that are lagging how does a company supposed to sell more? So yes, market share does matter eventually.

Bingo.

iPhone too expensive -> few people buy them -> Apple doesn't care about the market -> services availability and quality suffer, proprietary features become useless -> why would anyone buy an overpriced phone with sucky services

 

[Sedulous]

Edge to edge super Amoled; wireless fast charging; dual camera's; iris scanner; expendable memory... I can make that list much longer!

Above is only hardware...

I think when I start talking about Maps, Siri, iCloud you'll know enough

None of those are innovative, novel, or widely desired. Those are entirely iterations of existing design.

 

[9081094]

None of those are innovative, novel, or widely desired. Those are entirely iterations of existing design.

Oh please, if it was Apple introducing that stuff, you would be drooling all over the place.

 

[Johnny907]

Nope. Whining from my six year old is to be expected. Whining from a bunch of grown, spoiled first-world techies is banal and exhausting.

Yup, definitely AI material.

 

[9081094]

Yup, definitely AI material.

I agree with you. Have you read the comments on AI about India? Sometimes I wonder from what planet they're coming. Their comments and view on things give me the creeps.

 

[Johnny907]

India is not down. Apple has increased sales there. People need to quit confusing market share with sales. It's never been Apple's goal to have the most market share.

FTA:

"Apple saw a drastic percentage dip in iPhone users from 2015 to 2016, with 35 percent fewer iPhone devices sold this year"

"Apple sold just 800,000 handsets in Q2 2016, while in the same year-ago quarter the company sold 1.2 million units. These deflating sales numbers rippled into Apple's operating system marketshare in India, essentially getting halved down from 4.5 percent in Q2 2015 to 2.4 percent in Q2 2016"

For not being down, that sure as heck sounds like being down, Rog. A 400,000 unit drop year over year is neither a gain nor even treading water.

 

[vvs14]

Haha.. As soon as I read the title I knew people are going to relate this to poverty. Someone even said 90% people in India live on less than dollar a day! Pulling numbers out of our backsides are we?

Poverty is not the reason at all.. There are plenty of option that are nearly as good as iPhones.. They probably lag only in the camera department. Motorola and Samsung offer quality handsets at fraction of the price in India. And I am not even bringing in the local brands in the picture. Granted iPhones are expensive. But the main reason is you have to buys iPhones outright in India in most of the cases. How many of you would buy it here in the US if you had to pay $650 plus taxes upfront?

 

[Johnny907]

I agree with you. Have you read the comments on AI about India? Sometimes I wonder from what planet they're coming. Their comments and view on things give me the creeps.

I'm all for brand loyalty, but that bunch are koolaid drinking cultists. If you dare point out the negative aspects of any article there (unless it's focused on Google or MS) expect a litany of ad hominem attacks that would make the average 14 year old Call of Duty player blush.

 

[xbankaiz]

every time i see this news the only thing that comes to my head is that Nadella is from india. and is like the indian people don't support apple because they are with Microsoft because Microsoft CEO is from india. that's why they don't support apple because they are supporting Nadella. because they don't want to betray their brother, another reason might be that Microsoft is cheaper.

You're kidding, right? Microsoft phones have almost been demolished in India, just has it has been worldwide. Indians are flocking to Android for a lot of reasons:
1. Google apps ACTUALLY work - Maps, Google Drive/Photos, Gmail etc and most of these are free. Many of Apple's core apps don't work at all - Maps is pathetic, iCloud 5GB is horrible (especially when you're getting somewhat 'unlimited' with Google's offering), Apple TV apps don't work etc.

2. Android devices like the ZTE Axon7, OnePlus 3, Xiaomi Mi5 etc are competitive enough with Apple's offerings (some even arguably better with the tech specs) and Samsung's advertising power is a demon in India.

3. Apple's phones are way more expensive than it should be. Blame it on the ridiculous tax system or Apple's banality to earn more profits by pricing the same product 300 USD more than in the US, which sane person would actually buy it when one can buy the Galaxy S7/Edge (with the latest specs and more options like SD card slot, waterproofing etc) for less money than the 6S.

4. Apple's customer service is terrible in India. Believe you me when I tried to fix the FaceTime camera on my rMBP that I bought in India and it was a nightmare. My bf got frustrated with his iPad unusually heating up and freezing and rebooting constantly and when we took it to the Authorised Service Centre in New Delhi, the blokes there said that a fresh software reinstall will fix it. As if we hadn't tried that before, we let that guy do it and less than 30 mins of the reinstall, it started acting up again. He then clearly said that Apple will fix it with he next update. WTF! My iPhone 5 had battery issues and I had to get it fixed but that bloke again said a reinstall is needed. I gave up and just held onto them until I came back to Germany (where I'm studying) to fix them. I took it to the Apple Store in Frankfurt and my iPhone 5 was replaced on the spot, the rMBP's camera was fixed as there was some loose cabling in the logic board and the iPad was replaced as it had a bloated battery.
Unless Apple fixes their services there, why would anyone want to deal with all the hassles even after paying for a premium device?

5. And for the 'oh-so-rich' commenters talking about India's poverty, yes, you are correct to a certain extent. More than 45% of the population are so darn poor that even sub-Saharan Africa could be considered posh. About 30-40% middle class are averagely rich (who own lands, farmlands, houses/flat in metropolitan cities etc) and the 10% are just mind-blowingly affluent that it would even shame the people who are commenting about the poverty in India. Apple is targeting those 10% and probably about half of the middle class. In sheer numbers, that would equate to about 120 million (super rich) and 480 million (middle class) and in no way are those minuscule. So yes, there is a HUGE market potential in India and Apple knows that.

 

[9081094]

I'm all for brand loyalty, but that bunch are koolaid drinking cultists. If you dare point out the negative aspects of any article there (unless it's focused on Google or MS) expect a litany of ad hominem attacks that would make the average 14 year old Call of Duty player blush.

Lol, I know. And by the way... No brand will innovate if their customers are always happy with what they have to offer.

 

[thermodynamic]

"healthy growth"? It's an economy, not a biological organism, and an economy should be supportive of the biological people that created it. Not turned into a frankenstein.
[doublepost=1470436094][/doublepost]

You're kidding, right? Microsoft phones have almost been demolished in India, just has it has been worldwide. Indians are flocking to Android for a lot of reasons:
1. Google apps ACTUALLY work - Maps, Google Drive/Photos, Gmail etc and most of these are free. Many of Apple's core apps don't work at all - Maps is pathetic, iCloud 5GB is horrible (especially when you're getting somewhat 'unlimited' with Google's offering), Apple TV apps don't work etc.

2. Android devices like the ZTE Axon7, OnePlus 3, Xiaomi Mi5 etc are competitive enough with Apple's offerings (some even arguably better with the tech specs) and Samsung's advertising power is a demon in India.

3. Apple's phones are way more expensive than it should be. Blame it on the ridiculous tax system or Apple's banality to earn more profits by pricing the same product 300 USD more than in the US, which sane person would actually buy it when one can buy the Galaxy S7/Edge (with the latest specs and more options like SD card slot, waterproofing etc) for less money than the 6S.

4. Apple's customer service is terrible in India. Believe you me when I tried to fix the FaceTime camera on my rMBP that I bought in India and it was a nightmare. My bf got frustrated with his iPad unusually heating up and freezing and rebooting constantly and when we took it to the Authorised Service Centre in New Delhi, the blokes there said that a fresh software reinstall will fix it. As if we hadn't tried that before, we let that guy do it and less than 30 mins of the reinstall, it started acting up again. He then clearly said that Apple will fix it with he next update. WTF! My iPhone 5 had battery issues and I had to get it fixed but that bloke again said a reinstall is needed. I gave up and just held onto them until I came back to Germany (where I'm studying) to fix them. I took it to the Apple Store in Frankfurt and my iPhone 5 was replaced on the spot, the rMBP's camera was fixed as there was some loose cabling in the logic board and the iPad was replaced as it had a bloated battery.
Unless Apple fixes their services there, why would anyone want to deal with all the hassles even after paying for a premium device?

5. And for the 'oh-so-rich' commenters talking about India's poverty, yes, you are correct to a certain extent. More than 45% of the population are so darn poor that even sub-Saharan Africa could be considered posh. About 30-40% middle class are averagely rich (who own lands, farmlands, houses/flat in metropolitan cities etc) and the 10% are just mind-blowingly affluent that it would even shame the people who are commenting about the poverty in India. Apple is targeting those 10% and probably about half of the middle class. In sheer numbers, that would equate to about 120 million (super rich) and 480 million (middle class) and in no way are those minuscule. So yes, there is a HUGE market potential in India and Apple knows that.

Just wait until Indians do what Chinese are doing (and wrongly blaming America in the process):

http://www.bbc.com/news/world-asia-china-36842660

 

[kyjaotkb]

What???? The high class council estate Elite down the road living off unemployment benefits have iPhones

on a serious note .... You need to get out more , the 3rd world as you imagine has moved on from those old documentaries . They even have electricity in India and China now

"You need to get out more" -> do I know you? Do you know what I do for a living? India's middle class is nowhere near where China's currently stands. Inform yourself. Open a book.

 

[iamtheonlyone4ever]

You're kidding, right? Microsoft phones have almost been demolished in India, just has it has been worldwide. Indians are flocking to Android for a lot of reasons:
1. Google apps ACTUALLY work - Maps, Google Drive/Photos, Gmail etc and most of these are free. Many of Apple's core apps don't work at all - Maps is pathetic, iCloud 5GB is horrible (especially when you're getting somewhat 'unlimited' with Google's offering), Apple TV apps don't work etc.

2. Android devices like the ZTE Axon7, OnePlus 3, Xiaomi Mi5 etc are competitive enough with Apple's offerings (some even arguably better with the tech specs) and Samsung's advertising power is a demon in India.

3. Apple's phones are way more expensive than it should be. Blame it on the ridiculous tax system or Apple's banality to earn more profits by pricing the same product 300 USD more than in the US, which sane person would actually buy it when one can buy the Galaxy S7/Edge (with the latest specs and more options like SD card slot, waterproofing etc) for less money than the 6S.

4. Apple's customer service is terrible in India. Believe you me when I tried to fix the FaceTime camera on my rMBP that I bought in India and it was a nightmare. My bf got frustrated with his iPad unusually heating up and freezing and rebooting constantly and when we took it to the Authorised Service Centre in New Delhi, the blokes there said that a fresh software reinstall will fix it. As if we hadn't tried that before, we let that guy do it and less than 30 mins of the reinstall, it started acting up again. He then clearly said that Apple will fix it with he next update. WTF! My iPhone 5 had battery issues and I had to get it fixed but that bloke again said a reinstall is needed. I gave up and just held onto them until I came back to Germany (where I'm studying) to fix them. I took it to the Apple Store in Frankfurt and my iPhone 5 was replaced on the spot, the rMBP's camera was fixed as there was some loose cabling in the logic board and the iPad was replaced as it had a bloated battery.
Unless Apple fixes their services there, why would anyone want to deal with all the hassles even after paying for a premium device?

5. And for the 'oh-so-rich' commenters talking about India's poverty, yes, you are correct to a certain extent. More than 45% of the population are so darn poor that even sub-Saharan Africa could be considered posh. About 30-40% middle class are averagely rich (who own lands, farmlands, houses/flat in metropolitan cities etc) and the 10% are just mind-blowingly affluent that it would even shame the people who are commenting about the poverty in India. Apple is targeting those 10% and probably about half of the middle class. In sheer numbers, that would equate to about 120 million (super rich) and 480 million (middle class) and in no way are those minuscule. So yes, there is a HUGE market potential in India and Apple knows that.

yes i know windows mobile phone sucks , so android is the reason why apple sales declined in india not Microsoft. well i guess i should it known, because samsung is more dangerous as an enemy than Microsoft in the mobile market.

 

[Lannoc]

I didn't go through all the posts, but did anyone mention the fact that Apple reported 51% increase in India in the same period yoy? Yet this report states they are down 35%.

 

[MH01]

"You need to get out more" -> do I know you? Do you know what I do for a living? India's middle class is nowhere near where China's currently stands. Inform yourself. Open a book.

Nah mate, I was having a go at you referring to the iPhone being associated with elite. It's called sarcasm

 

[Sedulous]

Oh please, if it was Apple introducing that stuff, you would be drooling all over the place.

Regardless, revolutionary features will require a revolutionary technology. A bigger screen, more camera features, fewer ports, thinner, induction charging, these are all refinements of existing features. I don't care if the screen wraps around the whole device or they add a PEZ dispenser, all phone manufacturers have essentially hit the limits of what one can do with existing technology.

 

[kdarling]

I didn't go through all the posts, but did anyone mention the fact that Apple reported 51% increase in India in the same period yoy? Yet this report states they are down 35%.

Both numbers are correct.

Sales are down 35% for the past quarter as compared to last year.

So Cook came up a positive number by combining the past THREE quarters and saying it was 51% better than the same 90 day period last year.

 

[colbertnation]

That's the problem when selling a thousand dollar phone in a country where most people struggle to eat everyday.

Uhh yeah, I'm pretty sure this has been replied to already, but this is so completely ******** haha. Learn your facts man.

Another thing: if only 20% of India can afford a $1000 iPhone (which is definitely the lower bound estimate here), then that's 220 million people. That's more than the entire population of the United States that can afford a $1000 iPhone. By numbers alone, it's a bigger market than the US.

But the simple fact remains: iPhone is not that popular among the middle class because it sucks. Most middle class people in India prioritize what Apple will not offer: dual SIM cards, battery life, expandable storage, headphone jacks, etc. All things that Samsung caters to, and thus wins in India with.
[doublepost=1470449686][/doublepost]

India is incredibly price conscious; Apple doesn't sell cheap phones. No surprise here.

Not really. (See above comments)

 

[maxsix]

I'm waiting for the iPhone 8.

The smart money is waiting for iPhone 8.

The iPhone 7 is looking like a recycled iPhone 6S. A chubby huge, heavy smartphone with a low resolution display.

Samsung's stylish, compact Galaxy Note 7 is a modern smartphone that's lots smaller yet it's got a larger beautiful 5.7" high resolution display.

Time for Apple to play catch up and quit taking advantage of their Devotees willingness to buy anything with the Apple logo slapped on.

 

[lowkey]

Not Surprised. Apple no longer innovates... i'm a long time apple user but damn...of late Apple is really just so disappointing with their products and practices

In India the issue is price. Not innovation.
It's amazing people can twist any story they read to reinforce their existing views
[doublepost=1470451703][/doublepost]

Uhh yeah, I'm pretty sure this has been replied to already, but this is so completely ******** haha. Learn your facts man.

Another thing: if only 20% of India can afford a $1000 iPhone (which is definitely the lower bound estimate here), then that's 220 million people. That's more than the entire population of the United States that can afford a $1000 iPhone. By numbers alone, it's a bigger market than the US.

But the simple fact remains: iPhone is not that popular among the middle class because it sucks. Most middle class people in India prioritize what Apple will not offer: dual SIM cards, battery life, expandable storage, headphone jacks, etc. All things that Samsung caters to, and thus wins in India with.
[doublepost=1470449686][/doublepost]

Not really. (See above comments)

Headphone jacks?!? LOL
Name me one existing Apple phone that hasn't had a headphone jack?

 

[BvizioN]

"Earlier in May, Apple CEO Tim Cook admitted iPhones are too expensive in India, potentially harming the company's sales figures as it tries to grow."

Does this mean they're a bargain in the rest of the world? I think not. Just wait till they add the "Pro" name and make them even more expensive.

No, but in the rest of the world people's wage is not equivalent to Indian people wage, not to mention on the rest of the world you hardly get to buy a $4 smartphone on the shop like you do in India.

 

[9081094]

Regardless, revolutionary features will require a revolutionary technology. A bigger screen, more camera features, fewer ports, thinner, induction charging, these are all refinements of existing features. I don't care if the screen wraps around the whole device or they add a PEZ dispenser, all phone manufacturers have essentially hit the limits of what one can do with existing technology.

We can argue about screens and everything else what's evolution or innovation. My point is that Apple just comes to market with everything below the bare minimum today. It bites them back. See India, see China, see Europe and even see USA. People have good choices now and clever people choose value for money which translates in sales.
[doublepost=1470460457][/doublepost]

Uhh yeah, I'm pretty sure this has been replied to already, but this is so completely ******** haha. Learn your facts man.

Another thing: if only 20% of India can afford a $1000 iPhone (which is definitely the lower bound estimate here), then that's 220 million people. That's more than the entire population of the United States that can afford a $1000 iPhone. By numbers alone, it's a bigger market than the US.

But the simple fact remains: iPhone is not that popular among the middle class because it sucks. Most middle class people in India prioritize what Apple will not offer: dual SIM cards, battery life, expandable storage, headphone jacks, etc. All things that Samsung caters to, and thus wins in India with.
[doublepost=1470449686][/doublepost]

Not really. (See above comments)

Isn't this the real issue here? Competition is listening what people really want. Apple is focusing in harvesting as much profits as it can with minimal investments. They were ahead till a couple of years ago. But that same trick won't work today anymore because we've good alternatives. Same with computers. That's why even diehard Apple fans start complaining. Numbers don't lie and Apple can surely do better and that's the reason people start to complain.