Warc, 28 February 2013
BANGALORE: Apple, the consumer electronics giant, is putting
in place a new strategy for growth in India, where its market share languishes
a long way behind Android-powered devices.
A new report from Canalys, a mobile research firm, says
Apple sold 500,000 iPhones in India during 2012, mostly in the final quarter
when the iPhone 5 was launched. But the high price of this device ensures it
remains out of reach for most people in the country.
This figure also compares with 19.6m iPhone shipments to
China and 1.4m to Brazil.
Accordingly, Apple is linking up with new distributors
including Ingram Micro and Reddington as it seeks to reach a wider market.
It is also employing more sales and marketing staff –
numbers are up 30% in the past six months – who will be used to train service
providers and retailers.
And, thirdly, it is addressing the issue of affordability
with a 12-month payment plan.
"Most people in India can't afford a dollar-priced
phone when the salaries in India are rupee salaries. But the desire is the
same," Himanshu Chakrawarti, chief executive of The MobileStore chain,
told The Star.
The MobileStore claims to sell 15% of iPhones in the country
and saw sales triple between December and January, after the monthly payment
scheme was launched.
Apple is restricted from selling directly via its own shops
or online, and instead currently sells through around 2,000
"mom-and-pop" stores and 65 franchisee-owned "Apple shops"
in malls and other high-end spots.
The moves are a turnaround from CEO Tim Cook's position last
year when he said that Apple had "higher potential in the intermediate
term in some other countries." And he observed then that "the
multi-layer distribution there [India] really adds to the cost of getting
products to market".
As well as looking to sell more phones, Apple is also
stepping up the introduction of its other devices; Apple TV is expected to
reach stores very soon.
This is an area where high brand recognition is thought to
have benefited Samsung, which also sells products such as television sets and
air conditioners.
Data sourced from Wall Street Journal/The Star/World News
Resource; additional content by Warc staff
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