New Delhi: The Indian market has surprisingly proven an asset for Apple, whereas according to reports, China has made a great fall in the company’s growth. Apple Chief Financial Officer Luca Maestri exclaimed that year-ago sales of the company’s flagship smartphone climbed 76% in the country.
Interestingly according to the surveys, the median age of people in India is just 27, Apple CEO Tim Cook foresees a great growth for the company in this domain.
“I see the demographics there also being incredibly great for a consumer brand, and for people that really want the best product,” Cook said. “We have been putting increasingly more energy in India,”
The growth of the company in India proves to be a promising prospect, where on the other hand Apple faces hardships with the economic downside in China. China being the second largest market, still shows some spark of growth as in Greater China revenue rose 14% in the last quarter, particularly Hong Kong, Maestri told the agency in an interview.
India cannot immediately offset Apple’s woes in China, said analyst Neil Shah of Counterpoint Technology Market Research. The company averaged only about 450,000 smartphone shipments per quarter in India in 2015, compared with more than 15 million per quarter in China, Shah said.
By reports and as Shah said, the company’s smartphone market share stands at less than 2%, where around 70% smartphones sell for less than $150.
As the liking for 4G network coverage is growing in India, Apple frames investing more in India to be a turning point.
The young generation is already willing to spend heavily on the device. As of China, Apple products are considered a status symbol.
“The love for the iPhone is there,” said Carolina Milanesi, chief of research and head of US business at Kantar Worldpanel ComTech, a consumer research firm.
Apple’s next big task is targeting Indian market for their expansion, where its products are sold by third-party resellers. An Indian official told the agency that the company has filed an application with India’s Department of Industrial Policy and Promotion to open its own stores.(Inputs from agencies)