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Here’s Why Tim Cook is Not Able to Sell ‘Super Premium’ iPhones in India

"India continues to be a critical market for Apple as the premium segment is likely to grow faster than the overall smartphone market," he added

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Apple, smartphone
Customers walk past an Apple logo inside of an Apple store at Grand Central Station in New York, Aug. 1, 2018. VOA

By Nishant Arora

Apple CEO Tim Cook, who skipped mentioning India directly during the company’s earnings call with analysts, has said that there are several factors why iPhone sales are not picking up in the emerging markets like India.

“The customers are holding on to their older iPhones a bit longer than in the past.

“When you pair this with the macroeconomic factors, particularly in emerging markets, it resulted in iPhone revenue that was down 15 per cent from last year,” Cook told analysts late Tuesday.

The Apple CEO said foreign exchange is another key factor behind the slow iPhone sales. “The relative strength of the US dollar has made our products more expensive in many parts of the world,” he told analysts.

However, the growing competition in the premium segment — led by OnePlus, Samsung and Huawei — has made a major dent in Apple’s market share in India.

ipad, Apple, iphone XR
Apple CEO Tim Cook speaks during an event to announce new products, Oct. 30, 2018, in the Brooklyn borough of New York. VOA

According to Counterpoint Research, Samsung led the premium smartphone segment in India in 2018 with a 34 per cent share, followed closely by OnePlus at 33 per cent which was the best-selling device of the year. At third position, Apple had 23 per cent market share in 2018.

Industry experts say that it might be a continuing struggle for Apple to build upon volumes in a very price-sensitive India market (85 per cent market below $200), where it currently holds a share which is less than even 2 per cent.

“The new iPhones are costlier than the previous generation, making it unaffordable to the larger masses. Here vendors like One Plus are gaining as they have competitive specs at much better pricing as compared to Apple,” said Upasana Joshi, Associate Research Manager, Client Devices, IDC India.

“The newly-launched iPhones are also costlier for the super-premium segment (which is the focus segment for Apple in India), as one can buy high-end products like Smart TVs at the same pricing,” Joshi told IANS.

Apple has already begun reducing the price for third-party distributors in China and may follow the same in India soon.

Apple, Campus, China
A customer is entering the Apple store in Fairfax, Virginia. VOA

The iPhone maker is currently seeking tax relief and other incentives from the government to begin assembling more handsets and open its branded stores, and its proposal to set up a manufacturing unit is reportedly under evaluation.

Apple shipped 1.7 million iPhones in 2018, almost 50 per cent lower than the 2017 shipments of 3.2 million units.

Also Read- Social Media Giant Facebook Earns Record Profits with 2.32 bn Users

“We can expect some kind of price correction going forward as Apple has given indications that they will look at pricing outside the US closely now,” Tarun Pathak, Associate Director at Counterpoint, told IANS.

“India continues to be a critical market for Apple as the premium segment is likely to grow faster than the overall smartphone market,” he added. (IANS)

Next Story

Dell and Alienware to Launch New PC Gaming Devices to India

Dell also refreshed its G Series gaming laptops with the launch of the new G7 gaming system. With a design that is 19.9mm thin, it is the thinnest G Series laptop to date

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credit: www.news.filehippo.com

Refreshing its PC gaming portfolio in India, Dell and its subsidiary Alienware on Monday launched Alienware Area-51m, Alienware m15 and Dell G7 devices for the gamers in the country.

Originally unveiled at the CES 2019 in January, the devices have now made their way to India.

Price of Alienware Area-51m starts at Rs 299,590 and is available on dell.co.in while the Alienware m15 starts at Rs 178,399. The Dell G7 15 is available for Rs 157,399 and is also available on dell.co.in.

The new portfolio would be available in retail and multi-brand stores across the country from April 1.

“By an estimate, $1.1 billion would be the size of the Indian gaming industry by 2020. Community engagement, augmenting gaming as a profession and latest technological innovation is how we are defining the gaming landscape in India,” Anand Subramanya, Director, Product Marketing, CSB Dell India, told reporters here.

Alienware Area-51m is also the world’s first gaming laptop that supports upgradable NVIDIA GeForce RTX graphics, 64GB of memory and 2.5Gbps Ethernet technology.

Dell laptops
Dell laptops. Representational image. Pixabay

“This is an exciting time for PC gaming all over the world as well as in India. We are delighted to introduce ground-breaking, high performance gaming machines like Area-51m and m15,” added Frank Azor, Vice President and General Manager, Alienware, Gaming and XPS.

Focusing on portability in gaming machines, the Alienware m15, is the thinnest and lightest 15-inch Alienware laptop, that is aimed at gamers on-the-go. A powerful machine for gamers, it has 8th generation Intel Core i7 processors and NVIDIA GeForce RTX 2060 and 2070 MQ design graphics cards.

Both Alienware Area-51m and Alienware m15 offer “Cryo-Tech v2.0” — an advanced thermal technology that maximises performance and keeps these machines cool.

Also Read- This Smartphone by Vivo Creates The Record of Fastest Selling Smartphone in Company’s History

Dell also refreshed its G Series gaming laptops with the launch of the new G7 gaming system. With a design that is 19.9mm thin, it is the thinnest G Series laptop to date.

Powered by the 8th Gen Intel Core processors and NVIDIA GeForce 20 series RTX graphics card, and 144Hz refresh rate panel, the G7 optimises demanding AAA game titles and can also be utilised for everyday use. (IANS)