Apple Selling More Than Expected iPhones In India

Apple has been able to sell a larger number of smart phones in the Indian market due to its smartphone sales in Indian first and second tier cities

Apple and its high priced products have traditionally given their best performance in markets of Western countries where spending power of consumers is greater and operator-subsidized agreements are quite common. Other than China, Asia has proved to be a tough market for the company to dominate, but it has turned out that the smartphone maker is performing better in the Indian region than a large number of people might have anticipated.

The Cupertino based company has contributed to less than 1% of sales of smartphones across the nation in third quarter of 2015, but a newly issued report from IDC has found out it accounted for 4.6% of sales in the top 30 cities of India- which according to an estimate of the analyst firm contributed 50% of nation-wide sales-during the business’ final quarter.

In fact, the technology giant’s sales share  is still at 5.8% provided that if one looks at the first tier cities of India. Apart from that, IDC has claimed that the introduction of iPhone 6S and iPhone 6S Plus in 2015 saw the company retain its position as the best seller in the $300-plus niche, hauling in the market’s 42.1% despite the devices’ prices in India earlier being the world’s highest.

IDC has never previously posted figures that break down to Indian city-level, so it is not possible to conduct an analysis of the growth based on earlier quarters. But even alone, the  disclosed data shows that the recent decision of the enterprise to add to its focus on the country- where it is interested in selling refurbished older products to extend its pricing range, is making efforts to establish its owned retail stores, and has cut down prices- is proving to be beneficial.

With smartphone users totaling at 220 million, India is currently a bigger marketplace for phone manufacturers than the United States. But there’re a number of factors worth remembering when one thinks about the opportunity for the iPhone company and others in the market’s high end.

Budget products lead in terms of sale volume.  According to an estimate of IBC 66.66% of the smartphone sales in sdcond and third tier cities of India- which alone contribute to only more than 20% of the market- are offered at a price lower than $100. That is a bracket in which the organization simply does not play in, even with its older phones and that is why it’s amongst the best sellers based on country wide market share.

But Apple has always focused on greater margins as well as financial indicators like its first $1 billion dollar sales in an year and an yearly sales increase of 76%- demonstrate its growth in India.