Apple to enter smaller Indian towns with iPhones, iPads
KOLKATA: Apple may soon be slugging it out in the trenches with Samsung and other smartphone rivals as India country head Maneesh Dhir and
telecom business chief Sanjay Kaul seek a rapid increase in the pace of
growth in India, a market that it has neglected until recently.
While the iphone has always been an object of desire, Apple wasn't able to make a big dent in India because of pricing issues peculiar to this country - handsets aren't subsidised by contracts as in other parts of the world. Until recently, this was taken to mean that Apple wasn't really interested in pushing sales in the world's largest mobile market after China, while companies such as Samsung have pitched their products hard in India.
Samsung leads the India smartphone market with a 36% volume share, according to research firm Canalys, while Apple's was 2% in the April-June quarter. Apple's value share is higher at 5%, it said.
To their credit though, Dhir and Kaul have tried to work around their constraints by offering iPhones and other devices on installment, tapping a considerable vein of pent-up demand.
Dhir and Kaul are now putting the next piece of their strategy in place. Apple wants to enter smaller Indian cities and towns with iPhones, iPads and iPods as it feels these markets can deliver on its bid to grow fast.
"Apple has realised that if it wants to grow fast in India, it has to look beyond the metros," said the CEO of one of India's retail chains. "The company wants to grow upwards of 30% year-on-year in India and feels the smaller markets would play a critical role since the aspiration level of Apple products amongst the youth and rich is growing there as well."
While the iphone has always been an object of desire, Apple wasn't able to make a big dent in India because of pricing issues peculiar to this country - handsets aren't subsidised by contracts as in other parts of the world. Until recently, this was taken to mean that Apple wasn't really interested in pushing sales in the world's largest mobile market after China, while companies such as Samsung have pitched their products hard in India.
Samsung leads the India smartphone market with a 36% volume share, according to research firm Canalys, while Apple's was 2% in the April-June quarter. Apple's value share is higher at 5%, it said.
To their credit though, Dhir and Kaul have tried to work around their constraints by offering iPhones and other devices on installment, tapping a considerable vein of pent-up demand.
Dhir and Kaul are now putting the next piece of their strategy in place. Apple wants to enter smaller Indian cities and towns with iPhones, iPads and iPods as it feels these markets can deliver on its bid to grow fast.
"Apple has realised that if it wants to grow fast in India, it has to look beyond the metros," said the CEO of one of India's retail chains. "The company wants to grow upwards of 30% year-on-year in India and feels the smaller markets would play a critical role since the aspiration level of Apple products amongst the youth and rich is growing there as well."
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Dhir joined Apple India three years ago from AOL Inc, where he was the
global head for international business, and changed the way Apple was
doing business in the country. He hired Kaul from Blackberry
India, expanded the team threefold to more than 150 executives,
strengthened the Apple exclusive stores network, shortened the gap
between the launch of new models overseas and in India and spearheaded
the company's thrust on iPhones.
Apple CEO Tim Cock acknowledged the importance of India for the first time in July while announcing the April-June results, declaring that iPhone sales in the country grew 400% during the quarter, albeit on a small base. The company also reported double-digit growth in India's ipad sales.
The new marketing vision for India was unveiled on Monday evening at a meeting with 20 CEOs and senior executives of the country's top multi-brand telecom and electronic retail chains. Apple India's senior executives spelt out plans to enter the top 50 tier II and III markets in India by selling its phones, tablets and portable music players at their outlets in an exclusive corner or a shop-in-shop, said three people who attended the meeting. They requested anonymity since Apple officials had asked them to keep details of the meeting confidential.
Apple spokesperson in London did not respond to a questionnaire emailed on Wednesday.
Apple CEO Tim Cock acknowledged the importance of India for the first time in July while announcing the April-June results, declaring that iPhone sales in the country grew 400% during the quarter, albeit on a small base. The company also reported double-digit growth in India's ipad sales.
The new marketing vision for India was unveiled on Monday evening at a meeting with 20 CEOs and senior executives of the country's top multi-brand telecom and electronic retail chains. Apple India's senior executives spelt out plans to enter the top 50 tier II and III markets in India by selling its phones, tablets and portable music players at their outlets in an exclusive corner or a shop-in-shop, said three people who attended the meeting. They requested anonymity since Apple officials had asked them to keep details of the meeting confidential.
Apple spokesperson in London did not respond to a questionnaire emailed on Wednesday.
RAHUL KUMAR GUPTA
PGDM 1st
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