Does Apple’s presence and the subsequent marketing strategy make any sense in India?
Few months ago, when Apple CEO Tim Cook was in India, he stressed that Apple is betting big on India and is preparing for the day when India would become the next China of the smartphone revolution. He said that India is at same juncture in telecom revolution where China was some 7 to 10 years ago.
Yes, India is going to be the next big thing in telecom after America and China. It has already replaced America as the market having second largest smartphone user base. And since it has immense untapped potential, it is going to be the darling of whole world, including companies from America and China – either for hardware or software.
India’s smartphone user base is at 220 million while the number of mobile subscriptions in the country has reached to 1.1 billion is expected to scale up to 1.4 billion by 2021. Going by the base 220 million smartphone users, the smartphone penetration in India is still at 20% of the overall mobile phone subscription.
So, that is huge..huge opportunity.
Smartphone shipments to India grew at over 20% the last year. This year, India is expected to buy around 150 million smartphones. According to some estimates, the smartphone bases is projected to cross 700 million mark by 2020. It may be even faster than that as technological advancements are on the verge of making Indian telecom a data driven market. Smartphone prices are rapidly coming down, especially of 4G and LTE enabled devices. And as the Indian government is betting big on smartphones to drive its digital governance plan, it is just waiting to happen.
Now if Tim Cook sees India market where Chinese telecom sector was some 7 to 10 years ago, that would be, but India may bridge this gap much sooner than he would have calculated. It may be by 2019 or 2020.
Since Apple went on to increase falling prices of its iphone 6, 6S and 5S to further beef up its luxury brand perception and has launched iPhone 7 at the same price points, from Rs. 60,000 to Rs. 92,000, it seems Apple and Tim Cook have miscalculated the time when India would be finally ready to take off, as was the case with China.
Indian smartphone market has already taken off. Most of the new and replacement mobile phones are going to be smartphones as data prices have come crushingly low with the entry of a new operator, Reliance Jio, that has announced to charge only for data (and not for voice).