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Sales of Apple iPhones Will Pick up in India with Onset of Festive Season: Experts

The momentum will come "at the back of cashbacks, buyback offers and deep discounting, especially on etailer platform during the 'Big Billion Day Sale' on Flipkart and 'The Great Indian Festival' on Amazon lined up from October 10 onwards

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Apple
Apple lowers Q1 revenue guidance on slow iPhone sales.

The sales of Apple iPhones including the newly-launched premium iPhone Xs and XS Max will pick up in India with the country entering the grand festive season from October 10, industry experts said on Wednesday.

Apple brought its much-awaited line-up of iPhones to India on September 28.

iPhone XS with 4GB RAM and 64GB internal storage costs Rs 99,900; 4GB and 256GB variant is priced at Rs 114,900 and the 4GB with 512GB variant will come for Rs 134,900.

“We don’t have data yet but I think demand will be spread as gap between festive season and new iPhone launches is definitely there,” Tarun Pathak, Associate Director at Counterpoint Research, told IANS.

“The Indian consumers will look for all the options and might end up purchasing iPhones near the festive season, beginning with the auspicious period of Navratri festival from October 10,” Pathak noted.

Apple
A demonstration of the newly released Apple products is seen following the product launch event at the Steve Jobs Theater in Cupertino, California, U.S. Sept. 12, 2018. (VOA)

For an Indian smartphone user, carrying an iPhone has always been a style statement, irrespective of the price, and those who are in the Apple ecosystem will generate demand for the new iPhones, sooner or later.

Apple has also slashed prices of old-generation iPhones in India.

According to Prabhu Ram, Head-Industry Intelligence Group, CyberMedia Research (CMR), Apple is aware of the brand pull that iPhone has for aspirational India and that’s why they have slashed prices for old-generation iPhones.

“While there would be a slight upstick for old iPhone sales, during and beyond the festive season, we believe they would be up for tough competition from other smartphone brands,” Ram told IANS.

Apple is set to announce its fiscal fourth quarter results on November 1 and will reveal iPhones sales globally.

Apple
An Apple store in Woodbridge, Virginia. (VOA)

Apple posted a revenue of $53.3 billion in its fiscal third quarter — an increase of 17 per cent from the year-ago quarter. International sales accounted for 60 per cent of the quarter’s revenue.

“With global warranty and comparative high price in India, people may end up buying new iPhones from somewhere else,” added Pathak.

According to Upasana Joshi, Associate Research Manager, Client Devices, IDC India, as per previous trends, the major demand is for the old model line-up with deep discounts and cash-back offers largely driven by e-tailers which accounts for more than 50 per cent of overall Apple volumes.

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“If Apple decides to further lower the pricing of previous line-up like iPhone 7, 8 and X, as the new models hit the market, there might be some action in the coming quarters.

The momentum will come “at the back of cashbacks, buyback offers and deep discounting, especially on etailer platform during the ‘Big Billion Day Sale’ on Flipkart and ‘The Great Indian Festival’ on Amazon lined up from October 10 onwards,” Joshi told IANS. (IANS)

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India Becomes the Second Largest Smartphone Market After China: Report

India surpasses US to become 2nd largest smartphone market

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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.

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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.

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“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)