Apple Plans Revamped India Strategy With Official Stores, Year-Long iPhone Deals, and Improved Apps

[Cosmosent]

AAPL has very little chance of having any success in India.

Too little too late.

India is Xiaomi's to Lose ... End of Story !

The BIGGER problem for AAPL is that Xiaomi will SOON expand out from India (& elsewhere), & into the U.S. market !

They are the single BIGGEST threat to AAPL, & the threat is real !

Look for their mid-tier phones powered by the Snapdragon 710 (e.g., SE, 8X).

Xiaomi has been in discussions with the cellular service providers here in the States, in which customers will be offered a FREE 710-based phone as a 2nd phone, that piggybacks on the same phone number a customer uses for their iPhone.

iPhone users would simply get a 2nd phone, a Xiaomi 710 whatever, to complement their iPhone.

Xiaomi & Verizon are working on the Details ... have NO clue about the timing to the public.

 

[MacLawyer]

This sounds like the Microsoft "throw money at the problem" strategy.

 

[JPack]

Interesting to wonder what iPhones that Apple will promote as part of this strategy.

If the current SE is still too expensive, I doubt that we'll see a SE2 with a notch anytime soon.

I assume that when we get this year's iPhones the current SE and iPhone 6 will see further price cuts, making them more desirable for India (and I think this explains why Apple is really targeting iOS 12's performance improvements for these phones). Then presumably, as time goes on, we'll see the 7 series promoted more as it becomes cheaper and cheaper.

According to the article:

“The average budget of a shopper is about 10,000 rupees,” he says, roughly $150. The iPhone SE, the cheapest Apple model, costs almost twice that.”​

The SE will probably have a longer tail end than many expect and drop to less than $200. Apple will probably price the 6s where the SE is now. I agree iOS 12 plays a role in this. I think Apple will focus even more on monthly installment plans in India so consumers can afford an SE over 3-5 years.

 

[pipis2010]

You make a valid point, no point selling an expensive/luxury product if the company is unable to offer the services to make the product useful in the country it is trying to expand in. This seems like an oversight on Apples part.

In Siri’s defence, it’s useless everywhere, Apple Maps is not that much better. Apple Pay has yet to be accepted globally, etc. The list goes on relating to services and support. I believe there is opportunity to expand.

This is a major issue for Apple, if their are unable to sell its devices in India, there are very few developers who are willing to invest/support the AppStore as the market share is not lucrative. These developers will support AndroidOS and development will be in a competitors ecosystem initially. Apple needs to move fast, as Services is where it will make most of its profits from going forward.

For a 1 trillion-dollar company, you’d think this is the case but it’s not.

Why can’t they have different sets of teams working in the USA market, the South-American market, the European market, the Asian market, etc, so as to enable these services much faster locally?

The problem is that Apple is a bit of a hog regarding its services internationally - it’s not just the G-10 countries in this world, there are more and yet Apple seems to focus more on these countries, especially when they introduce new services/updated services...

 

[code-m]

Over 1 million iPhones were activated in China back in 2007. This was before Apple sold iPhone in China. These were grey market devices sold in the U.S. and shipped to China for a hefty profit. Back then, there was obviously no infrastructure to support iPhone in China.

If the market can afford it, consumers will buy it. Right now, the Indian market cannot afford it.

The grey market existed because people wanted to purchase them, even though it was not officially available in China. Those customers knew what their were purchasing, which meant that if it is not officially sold there then expect no service or support. It was the risk their took, for whatever reason I am not going to debate.

Apple is officially making its products available in India, with little to no official support. If someone from India purchased an iPhone from another country and it was not available at the time in India, then were are comparing Apples to Apples. Not quite the same thing.

 

[kshitijshah]

I'm from Bombay, India.

I have owned Apple products for decades from MacBook Pro to iPhones. I was even an Android user buying flagships smartphones of Sony.

For any luxury brand/company to pitch higher sales needs a very strategies pricing. iPhone X in India cost about 1300USD. That's a very steep price even for the Americans. But as long as you have a good middle income and high income market, it's still affordable. But in India, even if they have the money, they will still buy OnePlus or any other Chinese brand because they're getting everything or even more at half the price. And for many people this makes sense in India.

Apple doesn't need to change anything. It just needs to get all it's features down here.

Apple Pay - There's no Apple Pay. In India, Android phones can do NFC payments but iPhones can't. Imagine you have a USD1300 smartphone and you can't do NFC payments while those cheap 300-500USD can do NFC payments.

Apple Maps - We know Apple Maps have 3D Maps and turn-by-turn navigation but nothing is here in India. It's a waste. Specially Apple CarPlay doesn't support Maps turn-by-turn navigation.

Siri - Siri is as dumb as it can be in India. It doesn't let you book tables in restaurants, it doesn't tell you the movie timings, no regional language support etc.

Apple Stores - This is needed. It connects the customers straight to the brand. It's a different experience buying the phone from it's flagship store rather than some shop. Think of this in a way where you would only like to buy a car from it's showroom and not from anywhere else.

Apple TV App/Apple News App - We don't have these apps. I don't know why!

Surprisingly, Apple has not left only India but also many many countries without it's key features.

If you are not from US or UK, you are probably missing some features for sure. That's where Apple needs to understand that customers are ready to pay and the sales are the fact that people are still buying without having all the features but Apple took India for granted and they paid the price for it.

And let me tell you, India loves iPhones. They're crazy over smartphones and they totally believe iPhone is the god of all. The problem is not the pricing, it's the justification of pricing. If I am paying 1300USD, what am I getting back?

Look at Vivo Nex, OnePlust 6T, Huawei P20 Pro etc. These smartphones are simply copying iPhone X and selling at half the price with all the features available for the user.

If iPhone wants the market share, it needs to do more than what these Chinese brands can't do. And that's not just India but everywhere, even in US.

Nailed it - All the Indians asking for is the same level of service and support as the Americans get for the same price. How is it fair for Indians to pay a 30% premium to American prices and get sub-standard Apple services and poor support options only via third party providers.

if Google and Samsung can invest for India why can't a trillion dollar company do so from a business perspective. The problem is India was always slotted with Africa and ignored.

 

[code-m]

For a 1 trillion-dollar company, you’d think this is the case but it’s not.

Why can’t they have different sets of teams working in the USA market, the South-American market, the European market, the Asian market, etc, so as to enable these services much faster locally?

The problem is that Apple is a bit of a hog regarding its services internationally - it’s not just the G-10 countries in this world, there are more and yet Apple seems to focus more on these countries, especially when they introduce new services/updated services...

It is no surprise that Apple is an American company so their focus is to release products and services there initially. Similarly to a Chinese company releasing a product or service locally. The issue is that Apple has aligned itself as a “global” company, however its mindset is still USA focused. Take for example FaceID, it has problems with people of colour or certain ethnicities, I am not sure how wide spread the issue is, however it exists. I Cannot speak for Chinese companies as far as their approach on the global scale, however Samsung a South Korean global company does make an effort for local markets. Now if Samsung does it well is another issue depending on personal opinion, so I am not in a position to comment. Needless to say it is available. If Apple cannot deliver a polished product and service on release or shortly after as their do in America, maybe invest more resources into it. It comes across as the rest of the world to this global focused American company is treated as a second rate citizen. Profits in the American market is nearing saturation/penetration unless the cost of the hardware decreases, this is the reason Apple is focused on services.

FYI I live in Canada and I understand that certain licensing deals needs to be taken into account before it is offered, however while Apple Executive team places greater emphasis to ink out deals in America initially, maybe there should share the focus globally.

I am eager to see the day a service or product is offered in another country first and the tag line coming to USA soon, shocking.

 

[JPack]

The grey market existed because people wanted to purchase them, even though it was not officially available in China. Those customers knew what their were purchasing, which meant that if it is not officially sold there then expect no service or support. It was the risk their took, for whatever reason I am not going to debate.

Apple is officially making its products available in India, with little to no official support. If someone from India purchased an iPhone from another country and it was not available at the time in India, then were are comparing Apples to Apples. Not quite the same thing.

It says quite a bit when more than 1 million buyers in China were willing to pay a 40% premium for an iPhone with zero support, warranty, or apps.

It’s more than 10 years later and Apple has sold fewer than 1 million iPhones this year in India. Either something is wrong with Apple or something is wrong with the market.

 

[code-m]

It says quite a bit when more than 1 million buyers in China were willing to pay a 40% premium for an iPhone with zero support, warranty, or apps.

It’s more than 10 years later and Apple has sold fewer than 1 million iPhones this year in India. Either something is wrong with Apple or something is wrong with the market.

I am not sure if that is a good thing that you are mentioning. Think about it for a second, before I elaborate.

 

[JPack]

I am not sure if that is a good thing that you are mentioning. Think about it for a second, before I elaborate.

We’re not here to debate the good or bad, otherwise this thread would be moved to Politics, Religion, Social Issues. This is about Apple’s market penetration.

 

[code-m]

All of your points are well taken but you keep mentioning features and justification for pricing. These things are not traditionally part of Apple's marketing strategy. With Apple, you pay a premium and get the Apple brand which includes quality, support, usability and the Apple ecosystem. The only time Apple mentions features is when they've updated them or added them to their newest products. They don't do comparative value against Android devices for instance so I don't see Apple changing their approach to India nor do I see them succeeding until India's middle and upper middle class grow sufficiently.

To be fair, even customers in developed countries are unable to outright afford Apple products, most take loans. I am sure the Indian market does not mind taking a loan for product that offers the same if not very close experience to the American market.

Poverty exists also in developed countries, it is the level that exists. Just because the media keeps displaying poor people in developing nations, does not mean that the same issue does not exist in its own country. I don’t know if you travel outside your host nation, however the media reports on what will sell to the public. Similarly to terrorists that exist in developed countries, however you may hear about more incident(s) in other nations, I call this propaganda, its not fake news, its the amount of air time provided to emphasize stereotypes.
[doublepost=1533576384][/doublepost]

We’re not here to debate the good or bad, otherwise this thread would be moved to Politics, Religion, Social Issues. This is about Apple’s market penetration.

It’s a cultural issue, American culture is different from Chinese as Chinese culture is different from Indian and so forth. It tells me that Apple an American company that refers to itself as a “global” brand does not understand foreign cultures/mindsets that impacts there market share. It can be an expensive mistake or a great opportunity, presently it tells me that Apple is not doing enough, either because it does not understand or something else.

 

[pratikindia]

Apple needs to justify it's pricing in India. Many can afford it, but still they don't buy for the following reasons

1. Apple needs to make it's services on par with US.
2. Apple has few retailers in towns and cities
3. No full advantage of features available on iPhone.
[doublepost=1533576541][/doublepost]

If the market can afford it, consumers will buy it. Right now, the Indian market cannot afford it.

You have no idea of India market.

 

[JPack]

Apple needs to justify it's pricing in India. Many can afford it, but still they don't buy for the following reasons

You have no idea of India market.

According to the article:

“The average budget of a shopper is about 10,000 rupees,” he says, roughly $150. The iPhone SE, the cheapest Apple model, costs almost twice that.”

 

[code-m]

Apple needs to justify it's pricing in India. Many can afford it, but still they don't buy for the following reasons

1. Apple needs to make it's services on par with US.
2. Apple has few retailers in towns and cities
3. No full advantage of features available on iPhone.
[doublepost=1533576541][/doublepost]

You have no idea of India market.

Apple wants presence and profits, however no commitment. At least not on par to the US markets. China and India are the two biggest economies that Apple needs to grow and be profitable, presently their are only focused on China, meaning their can only focus on one market, while the other market gets taken from them under their feet. Multitasking is nonexistent to Apple.

 

[IGI2]

I'm from Bombay, India.

I have owned Apple products for decades from MacBook Pro to iPhones. I was even an Android user buying flagships smartphones of Sony.

For any luxury brand/company to pitch higher sales needs a very strategies pricing. iPhone X in India cost about 1300USD. That's a very steep price even for the Americans. But as long as you have a good middle income and high income market, it's still affordable. But in India, even if they have the money, they will still buy OnePlus or any other Chinese brand because they're getting everything or even more at half the price. And for many people this makes sense in India.

Apple doesn't need to change anything. It just needs to get all it's features down here.

Apple Pay - There's no Apple Pay. In India, Android phones can do NFC payments but iPhones can't. Imagine you have a USD1300 smartphone and you can't do NFC payments while those cheap 300-500USD can do NFC payments.

Apple Maps - We know Apple Maps have 3D Maps and turn-by-turn navigation but nothing is here in India. It's a waste. Specially Apple CarPlay doesn't support Maps turn-by-turn navigation.

Siri - Siri is as dumb as it can be in India. It doesn't let you book tables in restaurants, it doesn't tell you the movie timings, no regional language support etc.

Apple Stores - This is needed. It connects the customers straight to the brand. It's a different experience buying the phone from it's flagship store rather than some shop. Think of this in a way where you would only like to buy a car from it's showroom and not from anywhere else.

Apple TV App/Apple News App - We don't have these apps. I don't know why!

Surprisingly, Apple has not left only India but also many many countries without it's key features.

If you are not from US or UK, you are probably missing some features for sure. That's where Apple needs to understand that customers are ready to pay and the sales are the fact that people are still buying without having all the features but Apple took India for granted and they paid the price for it.

And let me tell you, India loves iPhones. They're crazy over smartphones and they totally believe iPhone is the god of all. The problem is not the pricing, it's the justification of pricing. If I am paying 1300USD, what am I getting back?

Look at Vivo Nex, OnePlust 6T, Huawei P20 Pro etc. These smartphones are simply copying iPhone X and selling at half the price with all the features available for the user.

If iPhone wants the market share, it needs to do more than what these Chinese brands can't do. And that's not just India but everywhere, even in US.

Yup! I agree completely!

Only up to recently Poland received Apple Pay but other than that, they are no better or sometimes worse than in India:

Apple Maps - We know Apple Maps have 3D Maps and better coverage but nothing is here in Poland. It's a waste. Specially Apple CarPlay doesn't even legally supported. And... there is no Siri. There is no flyover, and the polish navigation voice sounds dumb because she can't read polish names properly. Google can, and even has a few proper voices, with deeper sounding tones. I know Siri navigates in English, but since there is no Siri in Polish, imagine her quality...

Siri - Booking tables at the restaurant? Damn! We don't have Polish Siri at all, I can't even ask for the weather in Poland or any Polish place: Blizanów. (try saying that to Siri). I can't even turn on English Siri on Apple TV.

Apple Stores - This is needed. It connects the customers straight to the brand. It's a different experience buying the phone from it's flagship store rather than some shop. Think of this in a way where you would only like to buy a car from it's showroom and not from anywhere else.

Apple TV App/Apple News App - We don't have these apps in Poland. I don't know why!

TV Shows on iTunes - We don't have it in Poland.

 

[code-m]

According to the article:

“The average budget of a shopper is about 10,000 rupees,” he says, roughly $150. The iPhone SE, the cheapest Apple model, costs almost twice that.”

Apple products in Canada cost more as well, even with the exchange rate factored in, the cost is more. In UK/Europe the same deal, what makes it worse is VAT. India also has VAT, which further deepens the cut.

 

[JPack]

Apple products in Canada cost more as well, even with the exchange rate factored in, the cost is more. In UK/Europe the same deal, what makes it worse is VAT. India also has VAT, which further deepens the cut.

So? Canadians can afford it.

According to IDC, the average selling price of a smartphone in India is $157.

Indians aren’t buying expensive smartphones, period. The idea that they can afford iPhone is ridiculous. Every piece of data suggests an affordability issue. Yet, some guys here are trying to blame everything but that such as ecosystem, value, and suppprt.

 

[code-m]

Yup! I agree completely!

Only up to recently Poland received Apple Pay but other than that, they are no better or sometimes worse than in India:

Apple Maps - We know Apple Maps have 3D Maps and better coverage but nothing is here in Poland. It's a waste. Specially Apple CarPlay doesn't even legally supported. And... there is no Siri. There is no flyover, and the polish navigation voice sounds dumb because she can't read polish names properly. Google can, and even has a few proper voices, with deeper sounding tones. I know Siri navigates in English, but since there is no Siri in Polish, imagine her quality...

Siri - Booking tables at the restaurant? Damn! We don't have Polish Siri at all, I can't even ask for the weather in Poland or any Polish place: Blizanów. (try saying that to Siri). I can't even turn on English Siri on Apple TV.

Apple Stores - This is needed. It connects the customers straight to the brand. It's a different experience buying the phone from it's flagship store rather than some shop. Think of this in a way where you would only like to buy a car from it's showroom and not from anywhere else.

Apple TV App/Apple News App - We don't have these apps in Poland. I don't know why!

TV Shows on iTunes - We don't have it in Poland.

For a 1 Trillion dollar valuation company, the focus on USA markets is 90% while the other 10% is spread globally, while Cook & Co. refer to Apple as a global brand and company. Great I have a new Apple iOS device, however what makes the experience (as it does in USA) is nonexistent globally. Who every is in charge of global services requires help or should be replaced as their are asleep at the wheel.

 

[IGI2]

For a 1 Trillion dollar valuation company, the focus on USA markets is 90% while the other 10% is spread globally, while Cook & Co. refer to Apple as a global brand and company. Great I have a new Apple iOS device, however what makes the experience (as it does in USA) is nonexistent globally. Who every is in charge of global services requires help or should be replaced as their are asleep at the wheel.

Exactly!

Just throw some money at some services!

There is Siri in Russian so it should be possible to make one for Poland.

They will eventually map Poland (just like they do England, Italy) with their own cars, so why lag behind? They should throw some money to map Poland as well. Google could, we have Google Street View with 2-4 different views (that often Google cars made it here).

The satellite images are outdated in Poland, why just don't buy a fresher ones, Google could.

You can't choose a voice for navigation that doesn't have speech problems. They can't read properly: Jedenaście. Whereas Google has a few pre-recorded voices in Polish with two genders.

We still don't have QuickType suggestions in Apple keyboard, not dual-language support, no emoji suggestions, no predictive typing.

It's not that Android phones are so great, just Apple products are so lame NOT in the US.

 

[code-m]

So? Canadians can afford it.

According to IDC, the average selling price of a smartphone in India is $157.

Indians aren’t buying expensive smartphones, period.

Canadians like many Americans also take out loans to “afford” it. Very few actually buy Apple devices outright. The average selling price is market share and income dependant. You cannot expect to sell many $1000 USD devices in a country where the median wage is let say $200 a month. This tells me that Apple does not understand the country and culture it is doing business in. Sure many Americans and Canadian can afford it, even if that means taking a loan, however that cost is spread up to 2 years (average life of a phone due to battery health). In a developing nation/market that would mean I would have to hold onto that phone for 5-15 years.

Is this Apples problem, don’t know. All I know is that their are selling in a market that their do not understand or believer the culture/mindset is the same as other markets. Many people get smartphones through their carrier for a term. Imagine if you signed up for a 2 year term where the cost of the device exceed the cost of the service, only to be replaced in 2 years or less.
[doublepost=1533577933][/doublepost]

Exactly!

Just throw some money at some services!

There is Siri in Russian so it should be possible to make one for Poland.

They will eventually map Poland (just like they do England, Italy) with their own cars, so why lag behind? They should throw some money to map Poland as well. Google could, we have Google Street View with 2-4 different views (that often Google cars made it here).

The satellite images are outdated in Poland, why just don't buy a fresher ones, Google could.

You can't choose a voice for navigation that doesn't have speech problems. They can't read properly: Jedenaście. Whereas Google has a few pre-recorded voices in Polish with two genders.

We still don't have QuickType suggestions in Apple keyboard, not dual-language support, no emoji suggestions, no predictive typing.

It's not that Android phones are so great, just Apple products are so lame NOT in the US.

I visited Poland (amazing country), I completely agree with your view. Where competitors are willing to spend the money in foreign markets, Apple is more focused in American markets. While their hide their money and prefer to pay the least of their taxes in foreign nations. Google also hides its money in foreign nations, however at least it is spending more in those markets compared to Apple.

 

[weckart]

So? Canadians can afford it.

According to IDC, the average selling price of a smartphone in India is $157.

Indians aren’t buying expensive smartphones, period. The idea that they can afford iPhone is ridiculous. Every piece of data suggests an affordability issue. Yet, some guys here are trying to blame everything but that such as ecosystem, value, and suppprt.

Apple isn't aiming at the average consumer in any market, though, so the average selling price of a smartphone in India or anywhere else is neither here nor there. If Apple were, it would be charging something closer to average prices. Wealthier Indians can afford an iPhone as can wealthier Americans, Italians etc. The days of the iPhone's being some aspirational status symbol belong in the past. It is a matter of perceived value and Apple isn't cutting it recently. Witness the cheaper, stale old iPhone 8's eclipse of the new, shining iPhone X.

 

[pipis2010]

It is no surprise that Apple is an American company so their focus is to release products and services there initially. Similarly to a Chinese company releasing a product or service locally. The issue is that Apple has aligned itself as a “global” company, however its mindset is still USA focused. Take for example FaceID, it has problems with people of colour or certain ethnicities, I am not sure how wide spread the issue is, however it exists. I Cannot speak for Chinese companies as far as their approach on the global scale, however Samsung a South Korean global company does make an effort for local markets. Now if Samsung does it well is another issue depending on personal opinion, so I am not in a position to comment. Needless to say it is available. If Apple cannot deliver a polished product and service on release or shortly after as their do in America, maybe invest more resources into it. It comes across as the rest of the world to this global focused American company is treated as a second rate citizen. Profits in the American market is nearing saturation/penetration unless the cost of the hardware decreases, this is the reason Apple is focused on services.

FYI I live in Canada and I understand that certain licensing deals needs to be taken into account before it is offered, however while Apple Executive team places greater emphasis to ink out deals in America initially, maybe there should share the focus globally.

I am eager to see the day a service or product is offered in another country first and the tag line coming to USA soon, shocking.

Yeah, that would be the day!

 

[JPack]

Apple isn't aiming at the average consumer in any market, though, so the average selling price of a smartphone in India or anywhere else is neither here nor there. If Apple were, it would be charging something closer to average prices. Wealthier Indians can afford an iPhone as can wealthier Americans, Italians etc. The days of the iPhone's being some aspirational status symbol belong in the past. It is a matter of perceived value and Apple isn't cutting it recently. Witness the cheaper, stale old iPhone 8's eclipse of the new, shining iPhone X.

The global smartphone ASP is $345. India's smartphone ASP is $157. The SE is within reach of the average global smartphone buyer. It's unaffordable for Indians.

This is not an Apple problem. It's an affordability problem with consumers in India.

Just like Mercedes-Benz isn't about to sell Benz-branded mopeds in India, it makes no sense for Apple to stoop down.

 

[code-m]

The global smartphone ASP is $345. India's smartphone ASP is $157. The SE is within reach of the average global smartphone buyer.

This is not an Apple problem. It's an affordability problem with consumers in India.

Just like Mercedes-Benz isn't about to sell Benz-branded mopeds in India, it makes no sense for Apple to stoop down.

It would not even matter if Apple gave the iPhone SE for free, if the services and support is not available many would not be interested. What happens if my AndroidOS phone breaks, is stolen, etc, I can get a replacement very quickly due to availability. Now what happens if my free iPhone SE is broken, stolen, etc. Do you believe I will get another one for free, if so what is the availability, etc.

In a market where I can purchase 2 AndroidOS phones to one iPhone SE phone where the services and support do not exist, why would I even consider taking out a loan or save to buy an Apple product vice an Android. When you carry around any expensive device as a tourist or local you make yourself a target. I know I travel enough not to draw attention to the handheld device I use. I have witnessed people get mugged for the devices their carry around and flaunt it.

It is an Apple problem, without services and support competitors will move in. The American market has matured, China and India’s market are growing at a rapid rate. Just because a strategy works in America or China does not mean it will work in this example in India. Either Apple is serious to be a viable option in the Indian market or just fold and go home. The loss is not India’s it is Apples as their sell products and services to make a profit for their shareholders.

The market reach for a Benz or any luxury vehicle does not compare to a communications device. Even Benz and other luxury vehicle companies have a physical presence in India with its dealerships.

 

[Ramchi]

It says quite a bit when more than 1 million buyers in China were willing to pay a 40% premium for an iPhone with zero support, warranty, or apps.

It’s more than 10 years later and Apple has sold fewer than 1 million iPhones this year in India. Either something is wrong with Apple or something is wrong with the market.

10 Years back iPhone was damn cheap even in India, I bought the first edition of iPhone, tinkered with it etc...because it was really cheap at that time. Now it is nearly 5-6 times than it was ! India consumers were not getting support for issues (where I had to do all by myself when my phone bootloader gets affected etc...). Ordinary Indians, 10 years back were not up to that sort of experience, even it was affordable