I can see a lot of misinformation in this thread.
NOTE:
I’m an Indian and have lived in India all my life (apart from my visit to foreign lands for vacations).
The population in India who can afford iPhones is tiny. Period.
Everything else is just an excuse. Indians don’t know/care about Apple Maps/News/etc. There just isn’t the buying power in India yet.
Sell every single iPhone for exactly half of what it’s sold for right now in India, and the sales will be 5-10x of current sales the following year. No doubt.
Those Indians who have the means do buy iPhone X. But the population is tiny.
And Indians have a complex whereby they either want the X or no an iPhone at all.
That’s why sales in 2018 are less than half of 2017. Because many Indians could afford the 7 with its discounts. X, not so much.
If Apple has to grow in India, they’ll need to manufacture in India and sell phones for USD 1 = INR 70 and not USD 1 = INR 95. Indians just won’t be able to afford that in big numbers.
And that goes for luxury cars too. When Mercedes sells under 20k Cars a year in India compared to 100k’s in developed nations, despite having a far bigger population, that should be your hint.
I’m not saying it’s the fault of Indians. But the common man just doesn’t earn that much yet. And what Apple doesn’t realise is that India will never be the next China or Apple for luxury products. But it could become 1/4th of that in maybe 20+ yrs.
Let us take the Apple iUP for example.
Let’s say Apple launches that in India.
The iPhone X will be sold for INR 4000 per month, all inclusive. Approx USD 60 a month. For the base version. With AC+ included. At the end of 12 months you give back your old phone.
So that’s INR 48k a year out of pocket for the 64 GB version. How many Indians do you think will fall for it? I’d guess less than 100k a year.
Even the iPhone SE would be sold for at least INR 1000 per month.
And most Indians consider SE to be a variant of 5s and hence worse than iPhone 6. Yes, they are that ignorant. They no longer want to buy a 6 or 6s either since it’s old now. They either want 7 or X. Other phones are in no man’s land right now in India. People are downgrading from using an iPhone 7 to OnePlus 6. Yes, they’re that crazy.
One person I heard about was such a big show off, they wanted the X but couldn’t afford it. They sold their 7 to buy a USD 300 Vivo for the notch. Lol.
Finally, a true answer from someone who lived in India.
The data shows the buying power of Indian consumers is just far too low for luxury products like iPhone.
Audi, BMW, Mercedes-Benz, Apple iPhone, Cessna - these are all luxury products that are selling poorly in India.
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you are missing the point, for 1.4 billion population if average is $150/- then surely there is good chunk of market above average. even if only 2% can afford it still u r looking at 28million. Now lets only include salaried/earning population into that who can afford a top end phone (i have worked in india in the past so i reckon my numbers would be close enuf), its comes out to be about 4million.
A 4million markt is still 5% of total apple sales in 2017.
Remember this is purely salaried people not businneses.
Even only if quarter of them buy top end phone year on years its still 1 million.
And i can't stress enuf that this is only salaried class. medium to large scale businesses in India are huge
You have to move away from averages and %ages to get the market value.
Contrary to your point about Mercedes benz they luxe models are sold more and they have very little market for low end A series etc. Same with BMW Audi. if you like to talk about percentages Merc market rose by 500% in india in last 7-8 years. While here in UK it declined by 16%
Your math makes zero sense.
The average selling price of smartphones in India is $157. That means a BIG chunk of phones sold in the country are cheap smartphones. And it's less than half the global ASP of $345.
According to Counterpoint Research, only 4% of the smartphones sold in India are considered premium (>US$450).
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That tiny percent that buys high end mobiles is still more than the population of Canada. I too lived in India. You are too hung up on percents not realizing when dealing billions that’s still a lot of people. Samsung, Apple etc all check demographics etc when deploying their product lines. It also helps that quite a few people consider it as status symbol and some of those buy it even if it makes no financial sense. As kbk75 pointed out above comparing luxury car sales makes no sense.
That's not true at all.
Only 4% of the smartphones sold in India are premium (>US$450). Out of the 124 million smartphones sold in India last year, under 5 million are premium.
This is why Apple has sold fewer than 1 million iPhones this year.