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Things Are Going From Bad To Worse For Apple In India (qz.com)

An anonymous reader quotes a report from Quartz: Despite its increased focus on India, Apple is all set to see a slower year-on-year growth in iPhone sales in the country in 2018. "iPhone India sales were weak in the first half of 2018, and even if they show a big jump in the traditionally strong second half, Apple will still fall short of last year," Neil Shah, research director at market analytics firm Counterpoint Research, told Bloomberg. Apple has been struggling in India for some time now. In the year ended March 2017, its revenue growth fell to 17%, compared to 53% a year ago. This six-year-low growth was mainly due to a high base and a drop in the average selling price of each phone. Apple's biggest struggle in India has been its high price points. iPhones cost between Rs35,000 ($500) and Rs80,000 ($1,100) in India, compared to the average smartphone price of $157 in the country.

Amid all this, the company is seeing a massive churn in its India leadership. Last December, India head Sanjay Kaul quit after a six-year stint. The company has now reportedly lost three more of its top executives, Bloomberg reported on July 15: national sales and distribution chief, Rahul Jain; head of commercial channels Jayant Gupta, and head of telecom carrier sales, Manish Sharma. The company is also overhauling its India sales team, Bloomberg said, quoting unidentified sources.

82 comments

  1. I bet if they make a low end phone by cdsparrow · · Score: 3, Insightful

    They may have a bit better chance of penetrating a lower income market... Iphones are fairly expensive in a country like the US, completely stupid expensive for a country like India.

    1. Re:I bet if they make a low end phone by 110010001000 · · Score: 4, Insightful

      Yeah, they only made 17% more than they did a year ago in India. Is everyone insane? 17% growth is good.

    2. Re:I bet if they make a low end phone by gravewax · · Score: 1

      17% growth is great when it is a mature market. 17% growth in a rapidly expanding and growing market is stagnation.

    3. Re:I bet if they make a low end phone by 110010001000 · · Score: 1, Insightful

      No it isn't. You are selling $800-$1000 devices in a market where the per-capita yearly income is $616! And you are selling 17% more than the previous year, and the previous year you were selling 53% more than the year before! Eventually you run out of people who have $800-$1000 to spend on a device.

    4. Re:I bet if they make a low end phone by gravewax · · Score: 1

      Apple only have 2% marketshare in India. 17% growth is fucking awful when you are already on the bottom of the pile.

    5. Re:I bet if they make a low end phone by Anonymous Coward · · Score: 0

      you need to put those growth figures into perspective. The reason they could grow 53% in a year is they basically had less than 2% of the marketshare. Growth stopping at 2% in a market that is several times the size of the US is not good news for them. While the average per capita may be $600 their is a very large middle and upper class segment in india and right now they are choosing Android not apple.

    6. Re:I bet if they make a low end phone by Anonymous Coward · · Score: 0

      $616? think you are using some very dated numbers. in 2016 it was around $1600. Still low, but India also has a rapidly growing middle class and a wealthy high end. Apple is basically non existent in the indian market and as they become more wealthy this will become a market they are locked out of.

    7. Re:I bet if they make a low end phone by Anonymous Coward · · Score: 0

      They're choosing much cheaper Android phones because their middle/upper classes are still poor compared to the west.

    8. Re:I bet if they make a low end phone by Anonymous Coward · · Score: 1

      The rich in india are as rich or richer than the wealthy in the west. and the upper end of the middle class are also just as wealthy and the sheer numbers make upper for the smaller percentage of the population. By contrast while Samsung is also struggling they have 10 times the marketshare of apple in india.

    9. Re:I bet if they make a low end phone by Anonymous Coward · · Score: 0

      that argument would be valid if their market share was 3 or 4 times what it is. Even though on average people are poorer in india. Even if you only take the top 5% of people that is around 70 million people as viable targets. Their 3-5 million units a year is still too small for a market of that size. Worse still as india continues to get richer the natural migration will be to more expensive Android devices like those from Samsung rather than Apple.

    10. Re:I bet if they make a low end phone by Anonymous Coward · · Score: 0

      Do you see BMW complaining about their market share in India?
      It's a different market. Those 2% might be 90% of their ACTUAL market.

    11. Re: I bet if they make a low end phone by Anonymous Coward · · Score: 0

      Well, maybe they are *smarter* and choose to buy the more reasonably priced option.

    12. Re:I bet if they make a low end phone by Anonymous Coward · · Score: 0

      2% is a fraction of their potential market given their competitors while also struggling are doing 10 times better. BMW doesn't need significant marketshare to be a viable, apple does. funnily enough though BMW is doing very well in india and are the number 3 ranked luxury car brand

    13. Re:I bet if they make a low end phone by Anonymous Coward · · Score: 0

      It doesn't matter how rich the rich are. An iPhone isn't an item for the ultra-wealthy, it's just more expensive than your average phone. The wealth gap in India is much much greater than in the west as the vast majority of people live in extreme poverty. Whereas westerners can sometimes "splurge" on an expensive item like an iPhone, in India that's not going to happen.

    14. Re:I bet if they make a low end phone by parkinglot777 · · Score: 1

      you need to put those growth figures into perspective. The reason they could grow 53% in a year is they basically had less than 2% of the marketshare. Growth stopping at 2% in a market that is several times the size of the US is not good news for them. While the average per capita may be $600 their is a very large middle and upper class segment in india and right now they are choosing Android not apple.

      Hmm... Not good news. This is really business point of view. If they can't make money comparable to their competitors, they are doing bad even though they may have plus-sided profits. Yep, It is not about the amount of profit dollars. It is all about market share percentage (which in turn will increase profit dollars even more). That's how business point of view works nowadays.

  2. Fearless innovation by Anonymous Coward · · Score: 0

    Why not make a human feces proof cellphone? Maybe have a feature for an AI to scan video and auto upload acts of rape to a cloud server? Maybe have the system remind them how human beings act to break them from being mud pigs (it could be a cron job on a 12 hr timer)?

    They have so much room to do good and help these filthy monsters become something resembling human being

  3. A bit off topic! by Gravis+Zero · · Score: 1, Insightful

    Not only did he call a guy who rescued kids a "pedo"

    Indeed, he proved that is vulnerable to human emotion and misdirected his frustrations onto someone else. I understand it but that doesn't mean it's ok. A price will be paid for his words.

    he also turns out to be one of the biggest contributors to Republican PAC's

    I think you a missing the bigger picture.
    Forbes:

    There’s no doubt that Musk’s commitment to climate change is a life-long dedication: he has declared himself politically independent and announced comparative contributions to PACs aligned to the Democrats. His donation says more about the pernicious role of private money in the U.S. political system but it also shows the pragmatism of a man desperately striving for progress in a complex environment over someone who is a staunch ideologue.

    --
    Anons need not reply. Questions end with a question mark.
    1. Re:A bit off topic! by 110010001000 · · Score: 1, Flamebait

      No, I am not "missing the picture". He is one of the biggest contributors to the Republican PAC dedicated to keeping Republicans in the House. And calling someone a pedophile is not "human emotion" and "frustration". It is disgusting behavior. Of course, worshippers like you will always have a defense and excuse.

    2. Re: A bit off topic! by Anonymous Coward · · Score: 0

      The behavior we're seeing is nothing but school playground bully boy tactics. I'd expect better from someone holding that much clout in industry. It's childish and sets a really poor example.

    3. Re: A bit off topic! by Anonymous Coward · · Score: 0

      Go peddle your virtue signaling elsewhere. This has nothing to do with India or Apple

    4. Re:A bit off topic! by grep+-v+'.*'+* · · Score: 1

      Not only did he call a guy who rescued kids a "pedo"

      ..... A price will be paid for his words.

      He goes down in a kids hole multiple times for multiple kids -- with witnesses, even. Of course he's a pedophile. (How on Earth did Musk come up with that?)

      And a price? NP. Here, have a new car. There's more where that came from when it runs out of juice. Or: you've always wanted to shoot someone you didn't like into outer space? Soon, he can actually DO that.

      --
      If the universe is someone's simulation -- does that mean the stars are just stuck pixels?
    5. Re:A bit off topic! by Anonymous Coward · · Score: 1

      Biggest? He donated like $30k. That put him at #48 on the list. He donated a far larger amount to the DNC.

      More hysterics. Are you capable of calm, rational discussion?

    6. Re: A bit off topic! by Type44Q · · Score: 0

      And calling someone a pedophile is not "human emotion" and "frustration". It is disgusting behavior/quote> That depends entirely on why Musk blurted that out, which we'll likely never know... but rest assured he had a reason (bear in mind that extremely influential people are often extremely connected people... and in this day and age, there fewer and fewer secrets).

    7. Re: A bit off topic! by David_Hart · · Score: 3, Insightful

      And calling someone a pedophile is not "human emotion" and "frustration". It is disgusting behavior/quote> That depends entirely on why Musk blurted that out, which we'll likely never know... but rest assured he had a reason (bear in mind that extremely influential people are often extremely connected people... and in this day and age, there fewer and fewer secrets).

      No, just no... Unless Musk provides proof of what he said is true, it's slander and disgusting. Assuming that Musk knows more than he is saying is pure speculation and being an apologist for someone who is acting like a bully.

    8. Re:A bit off topic! by blindseer · · Score: 1

      Are you capable of calm, rational discussion?

      You must be new here. This is where people go when looking for an argument.

      --
      I am armed because I am free. I am free because I am armed.
    9. Re:A bit off topic! by blindseer · · Score: 1

      you've always wanted to shoot someone you didn't like into outer space? Soon, he can actually DO that.

      Are we certain he hasn't already? I mean they claim it was a test dummy in that space suit, and did anyone check the trunk of the car?

      --
      I am armed because I am free. I am free because I am armed.
    10. Re:A bit off topic! by non-Euclidean · · Score: 1

      Thank God, I thought it was being-hit-on-the-head lessons in here.

  4. Not everyone can afford them by Anonymous Coward · · Score: 1

    Apple should know better then to think everyone in these countries makes enough to afford a iPhone. Or can even afford to replace one as often as Apple would like. But to me Apple has never bothered to entertain the lower price market with a phone other then the 5C and frankly there are better and cheaper Android alternatives.

    1. Re:Not everyone can afford them by Anonymous Coward · · Score: 0

      They might be making sales off the commercial/public sector. A lot of organizations deploy Apple because ease of support and/or app development.

      But they're not going to see any growth in the consumer market beyond the size of the Indian middle class (basically people who can afford proper cars).

  5. Always growth and always growing faster by Anonymous Coward · · Score: 1

    Why is it a miserable failure unless a company is not only growing but growing faster than before?

    VP: "Hey boss, bad news, we sold more widgets in India this year than we sold in India last year."

    CEO: "Jesus, why is everyone around me so incompetent?!"

    1. Re:Always growth and always growing faster by Anonymous Coward · · Score: 0

      because apple has a virtually non existent marketshare in India. They need triple digit growth, even the 53% growth of the previous year was kinda blah! considering they had around 1% marketshare at the time. Now it is looking like they will top out at 2% which in one of the fastest growing markets means they are missing out.

  6. Re:Simple solution by Falconhell · · Score: 0

    Awww, look its a butt hurt bigot who can’t handle his inferiority.sad.

  7. What did they expect? by Stormwatch · · Score: 1

    They're selling a luxury product, facing much more affordable alternatives, in a seriously poor country. And they still managed to move a few million units. Well duh, what's the complaint? The fact that it was not a complete flop should be seen as a victory.

    1. Re:What did they expect? by Anonymous Coward · · Score: 3, Insightful

      India has some of the poorest people. They also have a middle class that is larger than the entire US population.

    2. Re:What did they expect? by alok_naik · · Score: 2
      Except for some college-going students, I don't think I've ever seen any Indian willing to go stand in a line overnight to buy an Apple product. I don't think most of us worship brands (many worship personalities, but that's a different story).

      To most people:
      • - A phone is a phone.
      • - What does a ridiculously expensive Apple phone do that my affordable Samsung won't do?
      • - My phone still works, why would I buy a new one?
      --
      Every time I think I've hit the bottom, someone lends me a shovel.
    3. Re:What did they expect? by BeanThere · · Score: 1

      Your point is true, but the situation's actually even worse, as ultimately what does the Samsung do that a feature-comparable-but-much-cheaper Chinese phone won't do? Not much. Hence Samsung has "only" about 28% market share in India (while Apple don't even make the market share pie chart, getting bundled into "Others"), while Chinese brands dominate (https://www.thenewsminute.com/article/chinese-brands-dominate-indian-smartphone-market-51-share-q1-2017-report-62166) ... Apple's a ripoff, Samsung less so, but I now only buy Chinese brands (my current Huawei is specification-wise almost as good as a Samsung S9 but literally half the price). Indians are less likely to buy into the 'pay 2 or 3 times as much because muh status' than Americans, but I'm surprised Apple are even doing as well as they are there, relatively.

    4. Re:What did they expect? by Anonymous Coward · · Score: 0

      This was my thought too. It's an over-simplification to say the issue is that Indians have low income. The real issue is that Indians tend to be more technologically adept and pragmatic with their purchases.

    5. Re:What did they expect? by Stormwatch · · Score: 1

      Don't look at the flagships only, Samsung offers some very modestly-priced models as well. Apple does not.

    6. Re:What did they expect? by BeanThere · · Score: 1

      That's a valid point, true.

  8. Re:Things are going bad for Musk too by Anonymous Coward · · Score: 0

    He should run for POTUS. Couldn't be worse than the last half dozen.

  9. The problem is tech support by Applehu+Akbar · · Score: 5, Funny

    When Indians have a problem with their iDevices, they get shunted to a Bay Area call center whose people speak in thick California accents and who insist on trying multiple approaches based on their training, rather than following comfortable scripts in the manner that local people are used to.

    1. Re:The problem is tech support by Anonymous Coward · · Score: 0

      If I had mod points...

    2. Re:The problem is tech support by Anonymous Coward · · Score: 0

      Not true, mostly Indians respond on tech support.

    3. Re:The problem is tech support by samwichse · · Score: 1

      This is the hardest whooooooosh I've seen in a long time.

    4. Re:The problem is tech support by Agripa · · Score: 1

      When Indians have a problem with their iDevices, they get shunted to a Bay Area call center whose people speak in thick California accents and who insist on trying multiple approaches based on their training, rather than following comfortable scripts in the manner that local people are used to.

      Whoa dude! That is totally bogus!

  10. Re:Things are going bad for Musk too by 110010001000 · · Score: 1

    Oh no. What will I do without my precious "mod points"? The horror!

  11. Gee, what can go wrong. by devslash0 · · Score: 2

    You're selling one of the most ridiculously priced, 1st world phone in a 3rd world country. Gee, what can go wrong?

    In all likelihood your execs are quitting because once employed they come to a realisation of how detached from reality your sales targets are.

    1. Re:Gee, what can go wrong. by Tough+Love · · Score: 1

      Well, and the value isn't there.

      --
      When all you have is a hammer, every problem starts to look like a thumb.
  12. Re: Simple solution by reanjr · · Score: 1

    Indians made great advancements in arithmetic. But to claim that's the basis of mathematics is missing a whole lot. Greek geometry and abstract thinking and a focus on mathematical proof was just as important. In addition, the so-called Indian contribution to math is often conflated with Mesopotamian contribution to math, just as the Islamic contribution used to be greatly conflated with Indian because the West received Indian math through Muslims.

  13. Indians aren't as stupid as they look by Anonymous Coward · · Score: 0

    Not like Americans.

    Most Indian people are cheapskates. World class cheapskates. There is no way they are going to cough up big bucks for an iPhone when Samsung or whatever will do the job just fine.

  14. FYI - college tuition $1000-$2000 by Anonymous Coward · · Score: 0

    Annual college tuition is anywhere from $500 to $2000 for a four-year degree. TAM for Apple products in India is the upper of the upper middle class somewhere around 5-10% of the population, closer to 5. For a 50% market penetration, that would mean sales of ~40 million phones and assuming 25% refresh their phones every year, total annual sales would be around 10 million. Apparently they are selling about 2.5 million every year.. They have room to grow..

  15. Re:Things are going bad for Musk too by Anonymous Coward · · Score: 0

    Less malicious damage to other people's lives.

  16. Re:Simple solution by Anonymous Coward · · Score: 0

    But what about the millions in bribes apple has already payed?

  17. Re:Just like here! by Anonymous Coward · · Score: 0

    Not as bad as things are getting for Hillary and Bill Browder. Their little scheme to steal $400M through the Clinton Campaign has been exposed.

    I don't think even her handful of crooked cronies at the FBI and DOJ can save her this time, because they're going down with her. Her best hope is to stroke out before the gleaming hammer of justice comes crashing down on her lifetime of evil, treasonous scheming.

    Now you know why she said "if Trump wins, we all hang!" Because she's guilty as hell!

  18. Re:Things are going bad for Musk too by Anonymous Coward · · Score: 0

    call a guy who rescued kids a "pedo"

    Well, is he? I don't know.

    But really, it's not like Democrats and Proglodytes haven't been calling everyone that disagrees with them on even the slightest point Nazis and racists now, is it? Why is everyone clutching their pearls all of a sudden when Musk does it? People should be desensitized to these hysterical, false accusations by now.

  19. Re:Things are going bad for Musk too by Anonymous Coward · · Score: 0

    If you're into buying politicians, it was a good year to start buying Republicans.

    Rich people don't play by the same rules as the rest of us. They don't care about your issues like "healthcare" and "racism." MAGA? Who cares, just send more money to my wallet.

  20. Maybe if they released a new SE by Anonymous Coward · · Score: 1

    That shit is old af.

    1. Re:Maybe if they released a new SE by blindseer · · Score: 1

      Why stop selling a product that sells, especially in markets like India, and has a headphone port?

      Seems to me a lot of Slashdot commenters look for a headphone port on their phones. Seeing another phone with a headphone port be taken off the market is another signal other phone makers would follow and drop their products with a headphone port.

      Also, when Apple announced the end of sale for the old style MacBooks with USB-A and MagSafe they got complaints. I guess this just shows again that someone will complain regardless of Apple does with their product lines.

      --
      I am armed because I am free. I am free because I am armed.
    2. Re:Maybe if they released a new SE by Anonymous Coward · · Score: 0

      But the point of the article is that apparently it isn't selling! At least not in India...

    3. Re:Maybe if they released a new SE by Anonymous Coward · · Score: 0

      Then update the model, and put on TWO HEADPHONE PORTS!!

      That should make them sell better. If none is bad, one is good, then two is better. Right?

    4. Re:Maybe if they released a new SE by blindseer · · Score: 1

      I'm not buying a new phone until I can get one with THREE headphone ports!

      --
      I am armed because I am free. I am free because I am armed.
  21. Xiaomi by Anonymous Coward · · Score: 1

    How does one compete with Xiaomi in smartphone market in india without doing what samsung did?
    Samsung is set to build largest smartphone factory in the world to to india. I bet you it's not going to produce Galaxy S series. It will be producing low and mid range phones, some probably exclusive to India. That's not something easy to do for apple, because trump wants factories in US.

    It's all about price there.

    1. Re:Xiaomi by blindseer · · Score: 1

      That's not something easy to do for apple, because trump wants factories in US.

      What Trump wants and what Trump gets will not always coincide. Also, it's not like Apple is incapable of creating more than one factory for their devices. Apple opened a factory in India to avoid import duties, so it's been done before.

      It's all about price there.

      Which is why Apple was willing to open a factory there. If Trump and his friends in DC want to see cheap Apple products in the USA then it would be to their benefit to fix the laws that discourage domestic rare earth metal mining. China has a near monopoly on vital rare earth metals and have placed export controls to encourage domestic production of electronics. The only reason this has continued for so long is because mining for these minerals in the USA is mired in laws that make it very expensive.

      The main problem is that where rare earth metals are found is in ore that is also rich in thorium. Mining thorium, even as a byproduct, is expensive because US federal law considers this a controlled "weapon grade nuclear material", which is bullshit. Let's assume it's not bullshit, that it is in fact valuable as a nuclear fuel. Then I'd expect the federal government would find this useful in things like fueling future submarines and aircraft carriers. Let people mine the rare earth metals to make iPhones, and have the government buy the thorium that comes up with it.

      There is not likely to be any iPhones made in the USA until there is a domestic source of rare earth metals with sufficient capacity to support a factory.

      Trump is not happy with China on trade. Here's a way to get leverage with China, start mining for rare earth metals and offer it for export to compete with China. While the USA is exporting metals maybe the USA could export thorium too.

      --
      I am armed because I am free. I am free because I am armed.
  22. what did they think? by Anonymous Coward · · Score: 0

    I'm sure iphones are also flying of the shelves in some central african countries.

    and what about the 'massive' turn-over in leadership, isn't this normal in india? you could have fooled me.

  23. Re: Simple solution by blindseer · · Score: 1

    Since then the USA put a car on the moon and sent another to Mars. I don't expect the Mars bound car to be operable when we get there but I've heard that the lunar rovers should be well preserved and just need a new battery to get moving again. In other words, what have they done lately?

    --
    I am armed because I am free. I am free because I am armed.
  24. its due to policies and marketing strategy by Anonymous Coward · · Score: 1

    A lot of people who have used apple now hate it. And the reason has been bad policies and wicked pricing strategies, and totally lack of quality control in service centers. I have been sort of discussing this with people who switched

    There was no option to replace batter or screen earlier. Its available now.

    The price in India is very high, compared to what it should be for a 3rd world country.

    People are realizing that high battery life is not due to better tech, but is due to low resolution display that iphones have. Especially when they see low cost Android phones having a kick ass display

    The lower cost 16GB/32GB models run out of space pretty soon, forcing people to take icloud subscription which no one in India likes

    If an iPhone gets damaged, you pay a hefty price to change it, and they give you a refurbished phone as new. The phone looks new, but the one I got had a poor battery. Others had some or the other problem.

    Being too secure for most people. Most painful is that kids entered wrong code and phone erased itself. Pretty much no one wanted this level of security. They did want theft protection though.

    Whereas phones are launched with high price and hefty discount, the price of old models is inflated back before the new phone releases. This is a common talk now, and people know it is their Indian marketing which has come up with the wicked pricing.

    Not that everyone who switched to Android is happy which has another set of problems. But the price point was really good, especially on battery and display resolution. At the same time, most felt that iPhone is generally a more stable / better phone than android.

    This is based on my own experience and people I talked to.

    1. Re:its due to policies and marketing strategy by Anonymous Coward · · Score: 0

      Can't agree more. They have been unfair in India.

    2. Re:its due to policies and marketing strategy by Anonymous Coward · · Score: 0

      had a similar problem. The refurbished phone had a pathetic battery. And the problem surfaced just after expiry of warranty of refurbished replacement phone.

  25. Build brand at reasonable pace by spinitch · · Score: 1

    Luxury products in India like Apple should pace scale of sales to realistic acceptance levels which is quite modest now and next few years. Likewise on investment. India will grow in time but the departing Execs might have over committed to achievements or vice versa Apple on investment, growth and compensation. It is odd that folks would leave a premium employer like Apple as if there were many viable other options. Maybe Apple's pay for performance drove away Execs who thought they could coast thru exploiting underlings ( common outside India too.)

  26. Re:Things are going bad for Musk too by Anonymous Coward · · Score: 0

    you do know he isn't an American right?