iPhone sales up 56% in India as Apple’s ‘increasing emphasis’ pays off

Photo credit: Pixabay.

For years, no matter what, iPhone sales could do no wrong. Then on Tuesday, the company credited with inventing the smartphone hit a wall.

Apple’s iPhone sales dropped for the first time ever – even in China, where people often go to extremes to get hold of the latest models

See: Apple’s China revenue drops sharply in record-breakingly poor earnings

Bucking the trend was India, which posted a 56 percent rise in iPhone sales year on year.

“We’ve been working in India now for a couple of years or more, but we’ve been working with great energy over the last 18 months or so, and I’m encouraged by the results that we’re beginning to see there,” Apple CEO Tim Cook said on a conference call with analysts.

Last month, Apple overtook Xiaomi in India.

This, however, won’t make India a growth engine for Apple overnight. The company does not say what percentage of sales that makes up, but analysts figure it is still around 1 percent of overall sales, according to Counterpoint Research. China in comparison made up about 25 percent in the reported quarter.

“In India, the bulk of iPhone shipments is still happening in the sub $300 range. Apple still has its work cut out to stimulate sales of its flagship models,”analyst Tarun Pathak of Counterpoint told Tech in Asia.

“The Indian smartphone user is not as rich or mature as the Chinese smartphone user and it will take at least four years for the iPhone to see sizable maturity,” he said.

Changing priorities

India was a low priority market for Apple for years because of lower spending power than China, where the company’s iPhones swiftly became must-have devices after their 2007 launch. But with China sales cooling, that is all changing.

While affordability is still an issue in the country despite a booming economy, Apple has come up with new ways to make users in the world’s second biggest smartphone market covet its gadgets.

Indian consumers are known for their penchant for buying cheap mobiles.

The company has introduced easy financing schemes, India-specific TV ads, plans to buy back dated models that are more affordable, and even announced plans to open Apple stores in all the major cities. Shoppers in India get Apple gadgets from third-party vendors.