Apple India Sales Rise At The Slowest Pace In Last Six Years
Apple India sales rise at the slowest pace in last six years:
Apple India has announced its results of the India specific operations for the Financial Year (FY) 2016-17, and has shown a 17% rise in sales over last year (FY 2015-16) when the company witnessed a growth of 53%. Incidentally, Apple has termed India as one of its fastest growing markets in terms of the revenues. <br><br>\\nAccording to the documents filed with the Registrar of Companies, Apple India’s revenues rose to INR 11,618.7 crore ($1.8 billion) in FY17 as compared to INR 9,937 crore in FY16. Analysts expect the growth to remain in a slow mode in current fiscal also, due to a slowdown in the demands of the recent models of the company.
According to the experts, the pace of growth slowed because of the effects of demonetization and the rising competition from the cheaper models of Chinese companies. Consumer spending on high-value items such as Smartphones nosedived in India after demonetization of the high currency notes was announced by the Government last year. Another factor was the large base effect, which means that it will be progressively difficult for the company to register higher growth rates on the already high rates registered earlier. Yet another reason is cited by Tarun Pathak, an associate Director at Counterpoint Research, a Hong Kong-based smart phone market tracker. As per him, “the mix of older generation Smartphones such as the 4S and 5S models may have contributed to a fall in the average selling prices (ASPs), and thus a fall in the rate of growth.” He further said, “Last year, older generation iPhones like 4S and 5S entered the mix for Apple and sold very well. For consumers, who are used to seeing Apple models at a minimum price of $400, those older generation iPhones proved to be very appealing. What happened as a result was that it brought down the overall ASPs for Apple, and thus the slowdown in the pace of growth.”
Apple India Sales Rise at The Slowest Pace in Last Six Years
As per Counterpoint Research, in the current FY, Apple sold 2.9 million units in India as compared with 2.2 million units in the year before. However, the major part of the volume sold is that of older models of iPhone, which witness price correction once the latest models are launched and which in turn leads to lowering of the average selling price of the iPhones and hence lower revenue growth.
Counterpoint Research predicted that the sales volumes of the iPhone would be 3.5 million in the current FY. In terms of the market share, in the above INR 30,000 category, Apple is the leader with a 35% market share and is followed by OnePlus with a 32% share; the third slot is held by Samsung with a 31% share. However, ‘above INR 30,000 category market ‘is only around 3% of the total Smartphone sales in India.
Apple considers India as one of its most important markets globally and the company has been continuously announcing a string of initiatives in the country including production and manufacturing of iPhones. The company, in fact, has already started shipping the locally made iPhone SE model to local customers, produced at its plant at Bengaluru. The phones at the Bengaluru plant, for Apple, are manufactured by Wistron, a Taiwanese original equipment manufacturer (OEM).