Apple Makes Record Sales In India

Apple sales achieve their all time high in India

Apple Inc. has deciphered the reason behind the decline observed in the sales of the iPhone. There has been staggering economic growth in the Chinese market but the company has done quite well in the emerging market of India where they have succeeded in achieving record sales during the last trimester of FY15. Several policies that encompass a wider distribution network, discounts, installment packages have assisted the company in shipping 800,000 products in India which is an achievement in itself. Ironically, consumers are not quite interested in the iPhone 6s and iPhone 6s Plus due to the hefty price tag.

The catalyst churning growth for Apple products is the price reduction in the Indian market. Some of the devices by the tech giant that had low prices are now retailing at a 50% lesser rate than the original cost. Moreover, the price of the iPhobe 5S has been reduced to $350 to $360 which in return has bolstered sales. A buyback program was also initiated by the company in FY14 where Indian consumers were granted the leverage to exchange their old iPhones for new models.

Apple has also collaborated with various banks in India to offer interest free loans so that the cost of the iPhone becomes affordable for the masses.

The saturation in the smartphone fraternity has now become quite evident where Chinese manufacturers are pushing in competition by coming up with mid-range smartphones that are becoming an imminent threat to Apple iPhones. The stocks of the company have gone down by 30% over the past six months and are now residing below $100.  The tech market is quite flustered now and the pressure will get more due to the Chinese economic slowdown.

Considering this, the growth opportunity which India has to offer is extremely lucrative. As per the consensus made by analysts, almost 35% of all the phones retailed in the region are smartphones. a research was conducted by the International Data Corporation (IDC) suggested that by FY17 India will take over the position of the second largest smart phone market from United States and will stand right behind China.

Apple has been extremely successful in India which adds value to the claimsa. The year which climaxed by the end of March 31, 2015, the Indian wing resulted in revenues worth $1 billion. A 44% increase has also been observed in contrast to a year back. However by September, only 2% of the local smartphone fraternity was under the company’s control.