Apple's India Smartphone Market Share Surges - Reasons And Sustainability

Feb. 18, 2013 7:04 AM ETApple Inc. (AAPL)21 Comments
Sneha Shah profile picture
Sneha Shah

Apple (NASDAQ:AAPL) stock has been hammered recently after concerns about slowing growth and heightened competition in its core smartphone market. This has led to a stock price decline of ~35% in the last few months. I had written about how Apple has become a decent buy, after its stock fell due to cheap valuation. One of the reasons for the bullish stance was that Apple is now concentrating its resources into the emerging markets such as India.

Expand into Emerging Markets - Apple has not really concentrated on increasing penetration into emerging markets like India. The company only recently increased its sales force in India where it already has a top-of-the-mind brand recall. The emerging markets such as China (deal with China Mobile (CHL)) and India present a great opportunity for Apple to keep growing through increased sales and marketing efforts.

Today, India's business newspaper Economic Times reported (citing unpublished IDC figures) that Apple's smartphone market share, in terms of value, has surged by more than 300% in the last quarter (4Q12) and the company has become the 2nd largest smartphone player. Apple has leapfrogged companies such as Nokia (NOK), Sony (SNE) and Micromax. While Apple is still 5th in terms of volume, its premium smartphone range has ensured that it packs a greater punch in terms of value. Other market research agencies have also indicated that Apple's smartphone sales increased dramatically in the last quarter.

What has led to this iPhone surge?

Apple has undertaken a number of measures to boost its sales in India. I thought these measures should have been taken a long time ago. However, with Apple finding it difficult to fulfill demand from the developed markets, India was not a priority. Some of the measures taken by Apple are:

  1. IT wholesalers - Apple has

This article was written by

Sneha Shah profile picture
I am Sneha Shah, the Editor-in-chief of Greenworldinvestor. A Chartered Accountant by profession, with interest in Finance,Green Industry, Economics and the Indian Market.

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