If you ask you which is the world's most successful smartphone brand, Apple is probably the most answer, this company that starts with computers, smart phones are doing better than computers, as the first company in market value, most of Apple's revenue comes from mobile phones, in the global market, Apple almost occupies a dominant position in major markets, in the second quarter of this year, Apple's iPhone shipments, accounting for 13% of global mobile phone shipments, its revenue has reached 40% of global mobile phone sales, more exaggerated, Apple's operating profit accounts for 75% of the global mobile phone market, which means that this company relies on smart phones to transfer money, far more than all other mobile phone manufacturers in the world combined, saying that Apple is the world's most successful smart phone company, absolutely no exaggeration.
However, not all markets buy Apple's account, Apple has encountered Waterloo in India, in the Indian market, the first market share is Xiaomi, followed by Samsung, vivo, oppo and other brands of mobile phones, and Apple in the Indian market accounted for less than 4%, why indians do not buy Apple's account?
Before answering this question, let's first look at Apple's development in India, Apple entered the Indian market very early, but the time to really take root in the Indian market is actually in 2017, that year, Apple produced iPhones in India, assembled iPhones in a factory in Bangalore, se, however, this does not mean that Apple sold well in India, between 2011 and 2015, Apple's sales in the Indian market increased from the original $100 million to $1 billion. In just 4 years, it increased by 10 times, so that Cook believed that the Indian market had great potential, at that time also set a goal of increasing sales to $5 billion in 2020, in 2016, Cook also took the initiative to go to India to promote his mobile phone, however, did not expect that the sales of that year not only did not rise, but there was a decline, Apple still insisted on increasing investment in 2017, and also set up an independent vertical department in India, at that time, Apple also invited a number of marketing celebrities, from Pepsi, Sony, Google that dug a lot of people, the result of the big failure, a large number of personnel job hopping, the key leaders left Apple, directly let Apple India into a semi-paralyzed state, Apple's sales did not grow much.
In the first quarter of 2018, the sales volume of iPhone in India fell by 42%, until now Apple has not improved in India, by Samsung, Millet and other brands of mobile phones, is Apple's products bad, from the market reaction can see that this is not the case, since the product is good, why Apple in India is not selling it.
In fact, mainly related to Apple's operating strategy in India, Apple is too self, Apple in India did not set a localization strategy, whether from pricing, marketing or other aspects, completely in other countries that set, from China's marketing can see Apple's idea, is to let Apple in the high-end field, do the best products, sell the most expensive prices.
But the Indian market is very special, first of all, India's people's consumption power is too low, according to the World Bank statistics, India's per capita GDP in 2018 grandma is only 2030 US dollars, less than a quarter of China's, so when buying smart phones, Indian people generally tend to those cheap products, and India's gap between rich and poor is huge, which means that ordinary people will not spend too much money on buying mobile phones, Credit Suisse data show that India's 1% of the rich people have more than half of the wealth, 50% The poor only own 1.4% of the country's wealth, so the best selling in India is the thousand yuan machine, Xiaomi has sold cheap enough in China, but in India, Xiaomi also specially targeted the country's market, the launch of cheaper Millet mobile phones.
Let's take a look at Apple's price in India, in 2019, Apple played a banner in India, the iPhoneXR only needs 1999 rupees per month, less than 200 yuan, but in fact, the price on the official website in India is 76900 rupees, the iPhone, xs is 99000 rupees, converted into 7332 yuan and 9427 yuan, which is more expensive than in China, even if it is an antique iPhone, SE, the price is about 1700 yuan, Most of them are refurbished machines, why is the pricing so expensive, the reason is that India's tariffs are high, in 2018, India will raise the tariffs on mobile phones from the original 15% to 20%, in addition to the basic tariffs, plus 10% of the social welfare surcharge, so how can the price be low, partial, Apple is not willing to lower their own value, unwilling to launch a special version in India, reduce the price of mobile phones in exchange for the market, the result is naturally that the Indian people do not buy it, Apple can not sell it at all.
In addition to apple itself, India's sales methods, but also greatly increased the difficulty of apple sales, India's infrastructure is weak, although in the past two years has improved, but today to Mumbai, New Delhi to see, or can see many slums, as well as people and livestock parallel situation, poor infrastructure affects the development of logistics, so India's smart phones, most of them rely on offline channels, and offline channels are also some small stores, equivalent to grocery stores, in addition to selling mobile phones also sell cigarettes, food and so on, The mobile phone here is more second-hand mobile phone, because the cheap mobile phone is more favored by Indians, Apple mobile phone even sells very few places, the number of people who buy it is naturally less, and India's infrastructure is weak, India's Internet is actually not so developed, we all say that India's IT industry is very strong, but in fact, it is for the United States to serve, India's local development is not good, so India's Internet costs are very high.
Apple's mobile phone is very good, there are many functions, but the Internet is so expensive, many people do not need so many functions at all, which limits the sales of iPhones to a certain extent, coupled with China's cheap smart phones flying all over the sky, a variety of products let Indian candidates can not come, most people will not think of buying iPhones, in short, Apple makes India high, sales are naturally not good, it wants to open up the market, either lower their own value, or insist on India's economy to get better, From the current situation, India seems to have chosen the latter, whether this strategy is correct, only time can give the answer.