Apple's Online Store in India Drives Significant Shipment Growth in Q1 2021

[MacRumors]

Apple enjoyed a "significant increase" in shipments in India in the first quarter of 2021, according to Canalys, suggesting the opening of its online store in the country late last year has been reaping rewards for the company (via DigiTimes).

Launched in September 2020, Apple's Indian online store offers a full range of Apple products and accessories with shopping assistance from Apple Specialists, EDU pricing for students, free no-contact delivery, financing options, a trade-in program for iPhone sales, and more.

Driven largely by traffic to the store that led to subsequent purchases, Apple became the fifth largest computer brand in India in Q1, with shipments of desktops, notebooks, tablets, and workstations combined reaching 208,000 units.

Research firm IDC's figures also indicate Apple's computer shipments in India (excluding tablets) grew 335.5% year-on-year in the first quarter and only lagged behind Asustek's by around 2,000 units. Apple and Asustek were tied for fifth place in IDC's rankings for computer brands in India in the quarter.

In a January earnings call, Apple CEO Tim Cook said that its India online store had received a "tremendous" response since opening, and that it had doubled Apple's smartphone share in the country to 4% in the December quarter. Cook said that as a result of the success, Apple was bringing forward plans to launch brick-and-mortar retail stores in the country.

Article Link: Apple's Online Store in India Drives Significant Shipment Growth in Q1 2021

 

[One2Grift]

Apple bringing its share to 10% in India would be a shock and certainly an incredible success point. Apple has decent sized shares in many industrialized countries but these markets are quite penetrated. Apple is virtually nada elsewhere. As such iPhone cominggrowth projections are quite small at around 3%.
India is a huge market. It alone would propel that 3% upwards to 4 or 5%.
we’ll see if it’s reality but iPhone a couple of points on iPhone revenue is huge.

 

[djcerla]

Looks like Tim Cook was right about India. There’s a booming middle class hungry for Apple stuff, apparently.

 

[himanshumodi]

I really hope their service and support is as good as it is in the rest of the world. With the base product, apple care+ and apple exchange rate, the products are obscenely expensive for India market. But if the support to go with it is good, a lot of the rich, upper middleclass folks will end up buying because of sheer longevity of Apple products (and the status associated with the brand).

 

[DelayedGratificationGene]

India is what 4/5 times a large as the US? I remeber back in 2012. I was entering a catering hall one night and a “waiter car” pulled up and out came like 6 waiters from a small beat up car. I noticed and confirmed one thing….they all had iPhones…it said to me even if you are not living high off the hog u still will make an iPhone a priority. Same thing will happen here….btw thats when I initiated my Apple position.

 

[ian87w]

See Apple? When you put an effort, you get money. Don't you like money? Now look at SE Asia and see what country is the largest market, and how long you have been ignoring it.

 

[Ramchi]

Apple carefully playing India. Their products are sold more in the off market sources, second hand, scalpers from ME, Singapore,China,Hong Kong routs. I was able to get iPhone Xs Max 512 GB for excellent price ($800-$900) about 18 months back and could sell it after 10 months almost for the same price (under warranty).

If their mid ranger editions could match the prices of OPO Flagship version, then there will be huge shift in user base to iPhones(which Apple may not do) . Hence their growth in terms of market share will be very very slow but in terms of growth percentage it will be very impressive

.iPhone 11 price was the perfect one.

Right now my iPhone 12 Pro Max 512 costs $2100 in India.

 

[Vratikranka]

Now just imagine what would happen is Apple was really serious about the Indian Market!

 

[Duane Martin]

Now just imagine what would happen is Apple was really serious about the Indian Market!

What would “really serious” look like? Remember, Apple does not chase market share (though they are curiously eager to brag about it when they have the edge) and will always protect their industry leading profit margins. So within those parameters what should Apple be doing to make gains in India? As a shareholder who is frustrated by the recently stagnant stock price I really want to know.

 

[svish]

Happy that Apple online store has finally started functioning in India. Without it, online availability was mainly restricted to Amazon India, where product availability is very limited. Now all variants of all Macs, iPhones, iPads are always available.

 

[ghanwani]

Now just imagine what would happen is Apple was really serious about the Indian Market!

They already are. That's why they have manufacturing in India and opened an online store. If they could have it their way, they'd replace iStores with Apple Stores.

 

[Madhava]

What would “really serious” look like? Remember, Apple does not chase market share (though they are curiously eager to brag about it when they have the edge) and will always protect their industry leading profit margins. So within those parameters what should Apple be doing to make gains in India? As a shareholder who is frustrated by the recently stagnant stock price I really want to know.

Apple should
Provide after sales support similar to that of US.
Open offline stores in metropolitan cities.
Introduce Apple backed monthly payments for buying hardware. (Current plans charge high interest on top of already premium price)
Make services (tv+, news, etc..) available in multiple Indian languages.

There are at a minimum 100 million Indians who can easily afford Apple devices (Still very low estimate). They need to see the value what Apple brings.

 

[Vratikranka]

What would “really serious” look like? Remember, Apple does not chase market share (though they are curiously eager to brag about it when they have the edge) and will always protect their industry leading profit margins. So within those parameters what should Apple be doing to make gains in India? As a shareholder who is frustrated by the recently stagnant stock price I really want to know.

Focus! Have you seen Oneplus & Realme (basically BBK)? I’m obviously not referring their phones or their OS. I’m referring to their focus. They bring so many lucrative deals & not just for end-customers but everyone. Integration with e-tailers, local shops. Marketing it so aggressively even when they have razor thin margins. OTOH, you rarely come across advertisements or promotions from Apple (Keep in mind India is price sensitive).
Then there’s supply side. Others manufacture locally to avoid customs which also bring other benefits. Apple only manufactures dated models. Just compare Samsung S series & iPhone prices with USA & India you’ll know what I mean. And this is just Hardware. Don’t even get me started on Software level... Google has local language integration, detailed local map support and many MANY MORE things! It’s basic that Indians pay more & get less (Oh wait is that what Apple’s going after? ”More for less”🤔)
P.S. I’m just a spectator & understand that there are experts handling business & this is just my POV which is based on very imited information.

 

[Vratikranka]

They already are. That's why they have manufacturing in India and opened an online store. If they could have it their way, they'd replace iStores with Apple Stores.

Manufacturing only DATED models that too just iPhone.

 

[ghanwani]

Manufacturing only DATED models that too just iPhone.

India is not competitive when it comes to high tech manufacturing. The point is Apple invested at least a little just so they could be price their devices a little lower in India. They would also have opened stores if they were allowed by regulation.

 

[Vratikranka]

India is not competitive when it comes to high tech manufacturing. The point is Apple invested at least a little just so they could be price their devices a little lower in India. They would also have opened stores if they were allowed by regulation.

India is not competitive? Do you know what companies manufacture & sell in India? Almost all! Samsung has world’s largest factory in India.
Secondly despite manufacturing (dated) models in India, prices are not in line with what other manufacturers price their products. It’s still expensive. Apple isn’t passing on the benefit to customers.

 

[ghanwani]

Samsung has world’s largest factory in India.

I must admit I don't know much about this. However, I do know many of the models sold in India are not even available in the US. Do they manufacture their flagship phones there?

 

[Vratikranka]

I must admit I don't know much about this. However, I do know many of the models sold in India are not even available in the US. Do they manufacture their flagship phones there?

Yes they do.