Apple Inc is targeting India’s appetite for iPhone, betting that rising wages will pull consumers away from the cheap alternatives that currently dominate the market. China on the other hand doesn’t look as attractive as it was before.
In the earnings call ,Apple forecasted the first revenue drop in 13 years, the Indian market stood out as significant source of revenue. The sale of the company’s flagship smartphone grown to a 76 percent in India from the year ago quarter ,Apple Chief Financial Officer Luca Maestri said.
According to data compiled by Counterpoint Technology Research, Apple sold an estimated 800,000 iPhone in India in the fourth-quarter, its highest ever amount but one that is a fraction of the 28 million smartphones sold during that period.
Apple CEO Tim Cook struck a more optimistic note, saying the company was “increasingly putting more energy” into India, citing a largely youthful population with rising disposable income as more people join the workforce.
With faster 4G coverage expanding, Apple has already asked Indian government for a license to set up its own retail stores just as the market seems to be turning in its favor.
As in China, Apple products are a coveted status symbol in India, a market that analysts say is likely to overtake the United States next year to become the world’s second largest smartphone market.