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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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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.

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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.

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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

Most Hated Task by Professionals in India is Data Entry: Report

88% Indians believe bots should be used for admin work

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Eighty-eight per cent of people in India believe that humans shouldn't be carrying out repetitive admin tasks if they can be done by bots. Pixabay

Eighty-eight per cent of people in India believe that humans shouldn’t be carrying out repetitive admin tasks if they can be automated and this could be a better way to make use of technology, a new report said on Tuesday.

The Automation Anywhere — a global leader in Robotic Process Automation (RPA) surveyed more than 10,000 office workers and revealed that on an average they spend more than three hours a day on manual, repetitive computer tasks which are not part of their primary job.

The research, conducted by OnePoll, investigated the time spent on and attitudes towards manual, repetitive digital administration tasks in the modern enterprise.

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Workers in India can focus on higher value tasks if the mundane repetitive tasks can be automated and be completed by bots. Pixabay

“As per the report, the most hated task for Indian professionals is Data Entry. Close to 80 per cent of the participants in India believe that admin work is an obstacle for them to do their main job,” said Milan Sheth, Executive Vice President India, Middle East and Africa, Automation Anywhere.

“Workers can focus on higher value tasks if the mundane repetitive tasks can be automated,” Sheth added.

New data shows that nearly half of workers surveyed who expressed an opinion find digital administration boring (47 per cent) and a poor use of their skills (48 per cent), while the majority say it gets in the way of doing their main job (51 per cent overall, rising to 80 per cent in India) and reduces their overall productivity (64 per cent).

According to the survey, Over half (52 per cent) of millennial respondents felt that they could be more productive if they had less administrative tasks to complete, slightly higher than the average at 48 per cent.

Also Read- Apple CEO Tim Cook Bullish on Preventative Healthcare Technology, AR

The study also revealed that nearly half (49 per cent) of those surveyed say that simple digital administrative tasks often prevent them from leaving the office on time, 60 per cent of the Indian participants believe the same, indicating it’s impacting their personal lives. (IANS)