iPhone-maker Apple marked 2023 as the primary yr when it topped the smartphone market income chart in India, mentioned a report by market researcher Counterpoint India on Wednesday. Two business officers who seek the advice of a number of smartphone manufacturers mentioned that Apple’s India income from iPhones fell simply in need of the $10 billion mark, however was sufficient to topple Korean electronics model Samsung’s long-duration stronghold on being the chief by way of income from smartphone gross sales in India.
Apple’s document smartphone income is available in a yr of continued lack of enthusiasm amongst shoppers in the direction of smartphones. Counterpoint’s report mentioned that shipments of smartphones in India remained flat by means of 2023 at 152 million items. Apple, as compared, shipped greater than 10 million iPhones for the primary time, rising at over 50% year-on-year (YoY).
Mint had reported on 30 October that Apple had led India’s smartphone market by income within the first half of 2023, and after sturdy festive interval gross sales, was on observe to high the smartphone market income by approaching the $10 billion mark in 2023.
“Apple continues to see sturdy shopper demand, and is more likely to preserve a robust double-digit cargo progress in CY24 as effectively. Compared, the general smartphone market may see a small 5% YoY progress by means of this calendar yr—though a lot of this can rely on how world macroeconomic circumstances play out by means of the remainder of this yr,” mentioned Tarun Pathak, analysis director at Counterpoint.
This market share for Apple comes off the again of a number of consecutive quarterly income information from its iPhone gross sales in India. On 4 November, Mint reported that Apple, in its September quarter earnings, disclosed its sixth consecutive quarterly income document—with its volume-wise market share crossing 6% for the very first time. Pathak mentioned that Apple is more likely to be the sixth hottest model in India, with a 6.6% market share by way of shipments on the finish of 2023.
Curiously, Apple is projected to have pipped Samsung for the highest spot by way of income with virtually one-third of Samsung’s whole cargo quantity—whereas Apple is claimed to have shipped simply over 10 million iPhones final yr, Samsung shipped over 27.3 million to seize 18% of the market. Nonetheless, Apple’s common promoting worth (ASP) is 3x that of market chief Samsung—compared to a $950 ( ₹78,000) per-device worth for Apple, Samsung’s ASP is round $350 ( ₹29,000).
Samsung, on its half, can be pushing for extra premium gadgets out there. Nonetheless, Pathak mentioned that Samsung’s bulk market share within the sub- ₹20,000 finances worth ranges has significantly declined, which has contributed to Apple overtaking it by way of annual income.
The rise of demand for iPhones in India is more likely to proceed within the short-term, as a number of financing choices, bank-linked reductions and powerful resale programmes provided by organized refurbished smartphone sellers are boosting gross sales of premium smartphones in India. Trade consultants count on this progress to maintain for 3 calendar years, earlier than Apple’s double-digit progress tapers off.
Navkendar Singh, affiliate vice-president at market researcher IDC India, advised Mint in October final yr that on account of its excessive ASP, Apple is more likely to hit a glass ceiling—past which it could wrestle to proceed promoting incrementally greater iPhones yearly in a value-conscious market.
The iPhone, nevertheless, has been extra vital for India than simply consumer-end gross sales. A 21 January report by business physique, India Mobile and Electronics Affiliation (ICEA) mentioned exports of Apple’s made-in-India iPhones crossed $7 billion in worth on the finish of December 2023—contributing almost 70% of all cell phone exports, and round 35% of all electronics exports from India on the finish of final yr.
On Tuesday, the Centre additional slashed import responsibility on cell phone spare components from 15% to 10%—a transfer that consultants mentioned may additional increase the native smartphone element ecosystem. Such strikes might additional generate elevated worth addition for India’s meeting ecosystem, which might acquire from extra localized gadget assembling going ahead.
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Printed: 31 Jan 2024, 07:15 PM IST
Supply: Live Mint