It maybe news to you but the unofficial number on penetration of iPhones in India is much more than the reported number as the top 5% mainly imports their phones from other countries due to the ridiculous prices of nearly USD 2000 for the top end iPhone XS in India> Apple just wont budge from the most regressive pricing policy in India. if Samsung can sell the USD 1000 Note 9 at a sticker price of Rs 67,900 why cant Apple sell the iPhone Xs for the same price? Instead iPhone XS 64GB has a sticker price of Rs 99,900
Samsung Note 9 - USD 1000 - Rs 67,900
iPhone Xs 64GB - USD 1000 - Rs 99,900 - a premium of 47%!
Probably Samsung sees the potential of India and has setup the worlds largest mobile factory in India (
https://news.samsung.com/in/samsung-inaugurates-worlds-largest-mobile-factory-in-india )
Also Indians are not in the Apple and iMessage ecosystem and don't see the need to pay this nearly 50% premium on flagship Androids. Besides Google delivers on a far better ecosystem in India compared to the non-existent Apple Maps, Apple Pay, Retail and Support Network. If you want to grow in India you have to invest in India.
So its not that Indians are too poor to afford "smartphones" - Indians are smart in seeing value and are voting with their wallets.