Saturday January 25, 2020
Home India 2020 Likely t...

2020 Likely to be Strongest Year for Apple in India: Experts

Apple can make 2020 its strongest year in India

0
//
apple
Apple recovered in the Indian market in 2019 after a sharp decline in 2018. Pixabay

BY NISHANT ARORA

The year 2019 saw a complete turnaround in Apple’s market share and presence in India, fuelled by attractive price drops on previous generation iPhone models (iPhone XR), affordable newer flagship premium models (iPhone 11) and attractive schemes on other products.

Not only older and new-generation models but also Smart Watches, AirPods Pro and Mac desktops witnessed a great adoption in the country.

Going forward, thrust on manufacturing high-end iPhones locally along with the first-ever flagship retail store would give Apple a booster in the price-sensitive smartphone market in 2020, say industry experts.

Apple
Not only older and new-generation models but also Apple Watches, AirPods Pro and Mac desktops witnessed a great adoption in the country. Pixabay

“Apple recovered in the Indian market in 2019 after a sharp decline in 2018. 2020 is going to be important, as this is the year when it has strongest-ever portfolio — iPhone XR, iPhone 11 and iPhone 8 — that will be very much relevant for the growing Indian market. There is also a lot of speculation about iPhone SE2 coming this year,” Tarun Pathak, Associate Director at Counterpoint Research, told IANS.

To recall, Apple supplier Wistron assembled low-end iPhone SE (now discontinued) and is now assembling iPhone 6S and iPhone 7 at its Bengaluru facility. The highest-selling iPhone XR is now being manufactured at Apple supplier Foxconn’s facility in Sriperumbudur, Chennai.

Media reports say that the Cupertino-based tech giant may launch two iPhone SE 2 models with 5.5-inch and 6.1-inch displays. Famed Apple analyst Ming-Chi Kuo also suggests that there could be a second iPhone SE2 model — dubbed as iPhone SE2 Plus — but only in the first half of 2021. Another Eureka moment for Apple would be a flagship branded store in India.

Apple is expanding its retail footprint and India appeared on its global map last year in August when the company said it looks forward to welcome customers at its first branded retail store in India soon.

“We appreciate the support and hard work by Prime Minister Narendra Modi and his team to make this possible and we look forward to one day welcoming customers to India’s first Apple retail store,” said the company, welcoming the government’s decision to ease the 30 per cent local sourcing norm in single-brand retail (SBRT).

Pathak said that a revamped channel strategy and local manufacturing will ensure duty benefits and much streamlined operations for Apple in the country.

Apple
Going forward, thrust on manufacturing high-end iPhones locally along with the first-ever flagship retail store would give Apple a booster in the price-sensitive smartphone market in 2020. Pixabay

According to Upasana Joshi, Associate Research Manager, Client Devices, IDC India, for the coming quarters, the tech company should continue to focus more on the $700-$850 (Rs 50,000- Rs 61,000) segment.

“That is the sweet spot for iPhones in India with added attractive offers for making the new model lineup a little more affordable, however, continuing to focus on older generation portfolio for volume growth,” she elaborated.

The tech company topped the premium smartphone segment by garnering a massive 51.3 per cent share in the Rs 35,000 and above price segment in the third quarter (July-September period).

Apple also regained top position in the premium segment in India in the second quarter with an overall share of 41.2 per cent.

Also Read- Samsung Introduces New Lineup of Curved Odyssey Gaming Monitors at CES 2020

Mac desktops helped the company register record growth in the India market in the July-September period, according to the company.

“2020 is likely to be Apple’s strong year in India,” Pathak said. (IANS)

Next Story

India Becomes the Second Largest Smartphone Market After China: Report

India surpasses US to become 2nd largest smartphone market

0
Smartphone
The Indian smartphone market surpassed the US for the first time on an annual level. Pixabay

New Delhi: Riding on Chinese brands, the India smartphone market surpassed the US for the first time on an annual level and this is the latest science and technology news, becoming the second-largest smartphone market after China globally — reaching 158 million shipments in the calender year 2019 with 7 per cent (YoY) growth, a report from Counterpoint Research said on Friday.

While Xiaomi continued to be the top player with 28 per cent market share in the calendar year 2019, Samsung was second with 21 per cent and Vivo at 16 per cent market share, said Counterpoint’s ‘Market Monitor’ service.

Smartphone
India has now become the second-largest smartphone market after China globally. Pixabay

“Although the rate of growth for smartphone market hit single digit for the first time ever on an annual basis, India is underpenetrated relative to many other markets with 4G penetration in terms of subscribers being around 55 per cent,” said Tarun Pathak, Associate Director, Counterpoint.

“Chinese brands share hit a record 72 per cent for the year 2019 as compared to 60 per cent share a year ago.

“This year, we have seen all major Chinese players expanding their footprint in offline and online channels to gain market share. For instance, Xiaomi, realme, and OnePlus have increased their offline points of sale while brands like Vivo have expanded their online reach with Z and U series,” said Anshika Jain, Research Analyst at Counterpoint.

Over the past four years, Xiaomi, Vivo, and OnePlus have grown 15 times, 24 times and 18 per cent, respectively.

“This highlights that OEMs are mature enough to capture next wave of growth and expand their operations in India,” Jain added.

Smartphone
Although the rate of growth for smartphone market hit single digit for the first time ever on an annual basis, India is underpenetrated relative to many other markets with 4G penetration in terms of subscribers being around 55 per cent. Pixabay

Samsung shipments remained almost flat (YoY) while it has shown a 5 per cent (YoY) decline in 2019.

“This is for the first time Samsung transitioned to a completely new portfolio targeting different channels (offline with A series and online with M series). However, it needs to double down its efforts to keep the momentum going,” the report noted.

While the smartphone market registered YoY growth, the feature phone market witnessed a steep decline of nearly 42 per cent YoY in 2019 and 38 per cent (YoY) in Q4 2019.

Also Read- Amazon’s Music Streaming Service Hits 55 Million Subscribers Globally

“This is due to slowdown in the new shipments from Reliance Jio. However, the players such as itel, Lava, Nokia and Micromax registered positive annual
growth despite the overall segment declined showing the untapped potential of the market,” said the report.

In fact, itel emerged as the number one feature phone brand in Q4 2019, followed by Samsung and Lava. (IANS)