Apple's iPhone struggles in India as Android grabs 97% of the local smartphone market

Apple's iPhone struggles in India as Android grabs 97% of the local smartphone market
A fresh report from market research firm Strategy Analytics reveals that Apple’s iPhone is struggling commercially in India. In the other corner of the boxing ring, Google's Android is in complete domination of the local smartphone market.

Strategy Analytics estimates that 30.7 million smartphones were shipped in India during the second quarter of 2016, a healthy 19% improvement compared to the 25.8 million units shipped in Q2 2015. Allegedly, low smartphone penetration rates, a growing middle class, as well as intense local competition are the main drivers behind this growth. India is the world’s third-largest smartphone market, following China and the US.

Out of the 30.7 million units shipped during Q2 2016, Strategy Analytics believes that 29.8 million of them (or an impressive 97%) run on Google’s Android. That’s good for a 28% improvement compared to same period last year. A year ago, Android held a 90% share of the Indian smartphone market, which now appears to be under Google’s full control.

Naturally, since Android is enjoying unparalleled success in India, Apple’s iPhone isn’t doing very well in the country. The researchers estimate that Apple sold just 0.8 million iPhones during the quarter and only accounts for 2.4 of the Indian smartphone market. Back in Q2 2015, Apple is estimated to have sold 1.2 million units, good for a share of 4.5%.

Apple’s main problem in India is the comparatively large price of its handsets. In a market where most smartphone sales are for low-cost handsets, Apple’s iPhone 6s was launched at an ultra-high price in the country. Back in late December, Apple notably slashed prices for its current-generation flagships, although it doesn't look like the aggressive move was enough to revitalize sales. The cheaper iPhone SE didn’t do much to boost Apple's local market share either. 

Apple has tried to improve its position in India through the sale of refurbished handsets. Thus far, however, these attempts have been halted by the Indian government.

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73 Comments

1. Finalflash

Posts: 4063; Member since: Jul 23, 2013

This was supposed to be Apple's saving grace this year. Wonder how they're going to pad the numbers on launch this time? They're really taking their position in the market for granted. Every year they fall further behind Android devices in every category and continue to think they're going to be untouchable forever. iPhones have already peaked in popularity, it's only downhill from here and that's when Apple decides to do less apparently.

2. kiko007

Posts: 7507; Member since: Feb 17, 2016

Keep telling yourself that. The fact that they tried to rely on a country where the average yearly income is less than the monthly salary of an American teacher was stupid, no question. However, they still make 4 to 5 times the profit of everyone else in this business. As long as that's the case, they aren't going anywhere.

4. sissy246

Posts: 7124; Member since: Mar 04, 2015

You are right, Apple is going no where. Sales are down yes but they will come back . It happens to companies all the time.

20. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Really? Ok. Where is Blackberry? Where is Palm? Where is Microsoft? Where is Nokia? Where is Sony? Where is HTC? Please tell me where all these companies are when it comes to mobile. THEY ARE ALL AT THE BOTTOM. Are they going to come back? Here is what you all don't understand. When you've been at the top and then you fall, you rarely ever make it back to the top. Example. Apple was on top of the PC market, until IBM and the Windows OEM found away around IBMBIOS to run PC applications. Where is APple now? Apple makes and sells roughly 1.5M computers per quarter. HP and Dell both still make and sell double didgit PC's per quarter. You think Apple is going to the top of the PC pile? Apple was on top with the iPhone. The iPhone is not the same product as a PC. Apple was at the top for how long? Where are they now? They never were on top in global sales...WITH ANY product other than the iPod. Now Samsung is outselling the iPhone with just the S7/S7 Edge in their own backyard. When youa er at the top, you either do what it takes to remain, because the only direction you can go is down. Apple is never going to be at the top of the smartphone market again. Especially not globally because most countries cant afford iPhones. Especially India and China. Android has 97% of India. Look how many people that is. You thinkl Apple is going to the top again? How about they should have did what it takes not to leave the top in the first place. Because once you fall, you aren't getting back up in this market. Your claim is false. We are talking tech giants here. We aren't talking retail companies. How many tech companies you know whe were on top, are now making products in that same category and came back on top? IBM was on top of the PC market. Now they are in software solutions and services, which they are not at the top of. Blackbberry was once at the top of mobile devices, they are now falling into a software and services market which they don't lead in. Sega once dominated the video game market and so did Nintendo. Sega only makes rehashes of old games for other consoles and Nintendo is close to being in that same boat. Consoles are now lead by MS and Sony. Once they die, no one will care about video games. You thin Sega and Nintendo will rise back to the top? I mean wake up man. Companies don't fall to and rise back up so easily as you make it seem. The example you could provide would be rare.

32. sissy246

Posts: 7124; Member since: Mar 04, 2015

I don't believe I said they would get back on top. I am just saying that they are not going anywhere and I do think sales will get better for them. I am not a Apple fan and would never give apple a dime but they do have a good following.

55. meanestgenius

Posts: 22276; Member since: May 28, 2014

There are a few things wrong with your assessment. First: Apple was already in the bottom before, remember? They almost went out of business. Now, they bring in the lions share of mobile profits with a product that is desired by a literal plethora of individuals. They are one of the most powerful companies in the world now, and not just in mobile. Apple reinvented itself and was able to get where it is today through that reinvention. Second: Microsoft is the largest software company night world. STILL. It's been that way for years. Windows and other parts of Microsoft's software is EVERYWHERE. They have the largest market share out of the desktop OS's. That ain't Changin' anytime soon dude, if ever. Third: BlackBerry has the largest market share in enterprise when it comes to Mobile Device Managemet/Enterprise Mobile Management thought their BES software. They also have the lions share of market share in the auto-infotainment industry through their QNX brand software. In BlackBerry's case, they reinvented themselves into a SaaS and Security company. ALL of these companies are at the top their respective primary fields and what they are primarily focused on: for Apple, it's profit share. For Microsoft, it's desktop market share through their software. For BlackBerry, it's MDM/EMM market share in enterprise and in the auto-infotainment market through QNX. All of these are markets/positions that most, if not all companies definitely would not mind being on top of. These are things you should mention when making your "assessment" of companies. Tell the whole story, don't just cherry pick the parts that you want. It will make you look more credible.

58. deewinc

Posts: 455; Member since: Feb 21, 2013

Apple almost went out of business and Bill Gates personally bailed a whole company out of his own pocket. If it was not for Bill Gates Apple could have demised long time ago.

60. meanestgenius

Posts: 22276; Member since: May 28, 2014

Of this, I am aware of.

61. peacetoallfellas

Posts: 76; Member since: Jul 15, 2016

Bro i still belive that blackberry 10 is much better than ios and android combined . But the fact is nowadays sheeps drives the company profit i.e isheep and shamesung sheep those idiots are a bigger threat than radical islamist

68. meanestgenius

Posts: 22276; Member since: May 28, 2014

I'm right there with you concerning BlackBerry 10. Those of us that have used it for any real length of time and really know about it know just how good it really is.

79. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I said, none of these tech Co p is rise back to the top of a product category they once lead with. Microsoft once lead mobile with Windows Mobile. Now they dont. I never mentioned Windows. I specifically said the mobile market. UT somehow that is cherry picking? RIM lead with hardware which helped there Enterprise offering because at the time BlackBerry OS only worked with their phones. Later they made BES work with Exchange. BlackBerry is no longer the leader in mobile hardware. I stated things Co panes once lead in. You get once to be on top. It's hard when you have lots of competition gunning for you. But like all, once they get to the top, they rest on their laurels. Samsung for example has been on top of mobile for several years as far as global sales. They have made lots of changes due to harder competition. But even when no one was competing hard, Samsung busted their butts on their S and Note. Because Samsung seems to be the o ly tech OEM who understand that once you get to the top, you have to actually work harder to stay there and not take it for granted. Which is what RIM, MS, IBM, Apple, Intel and others have done.

78. FReDcc

Posts: 73; Member since: Jun 11, 2015

if samsung can come back Apple too can..okey?

27. sgodsell

Posts: 7451; Member since: Mar 16, 2013

Apples sales are down not only in India, but the rest of the world as well. When I see other OEMs continue to offer newer hardware with better specs, and at reasonable prices. Then Apple is going to continue to see their sales drop. Apple has created their own problems. Look when Apple can sell an iPod touch 6th gen (A8) for $199 (sale for $169) that has the same processor as their iPhone 6. Yet the iPhone 6 sells for $550. The iPhone SE (A9) sells for $399. Apples greed is catching up with them. Especially when you can get Android smartphones that are around $200 with more ram and storage with higher resolution displays, and more. Yet the OEMs that are selling those Android devices are still making a profit, however they are not gouging or raping people's wallets. If Apple continues to offer very little for the consumers dollar, then Apple will continue to decline. Apple needs to rethink what is more important. Profit or market share.

35. razmahtaz001

Posts: 501; Member since: May 11, 2013

no all LOL and ive always noticed the fan boys always use the "but they own the profit margin" in all smartphone sold. if the u.s. follows india and china by buying android instead of ios, apple will start to feel it...especially if the u.s. courts begin to play fair on its own home turf LOL...and other countries begin to sue apple and play homies the way the u.s. court and especially obama for vetoing a ban on apple devices LOL..wtf eh?

6. TheOracle1

Posts: 2340; Member since: May 04, 2015

China was the same 20 years ago and look at them now. Apple can't afford to ignore 1.2 billion subscribers no matter how much you choose to denigrate the less fortunate. When people vote with their wallets they scrutinize what they're getting for their money. On that basis the iPhone can't compete with the likes of LeEco, Xiaomi, Micromax, Samsung, Lenovo etc. When a smartphone purchase represents a big chunk of your monthly income you don’t give a flying f*ck about looking cool (unlike in the west) or trendy and want the best value for your hard earned money. In no way does Apple remotely represent a good value.

9. kiko007

Posts: 7507; Member since: Feb 17, 2016

"China was the same 20 years ago and look at them now" Look at what? Their terrible economic structure? "Apple can't afford to ignore 1.2 billion subscribers no matter how much you choose to denigrate the less fortunate." A) Yes they can, because they've been ignoring India for years. B) What I said isn't denigrating anyone. The majority of the population can't afford a phone over a hundred dollars. That's fact, not conjecture. Get over it. "When people vote with their wallets they scrutinize what they're getting for their money." Hard to vote with your wallet when it's basically empty....remember that. "On that basis the iPhone can't compete with the likes of LeEco, Xiaomi, Micromax, Samsung, Lenovo etc." 1: That's an opinion, not a fact. 2: Fun fact time. The average smartphone purchase in India is around $70 total. Do any of those companies make flagship phones for $70 dollars? No? Then shut that garbage about "better value" up.

59. deewinc

Posts: 455; Member since: Feb 21, 2013

How do you expect to sell a product with 1GB or RAM and an 8 megapixel camera, 16GB of memory for over $600 like what Apple used to do with their previous iPhones? Even as now such outdated iPhone would fetch not less than $200 refurbished. The same specs in an Android product would fetch $70 in any country not just India.

63. peacetoallfellas

Posts: 76; Member since: Jul 15, 2016

Bro iphone users take user experience as their first priority, they are not like idiots who gets driven by shamesung specifications propoganda , and by the way whats the point of having that much of ram and more numbers of cores if lagwiz is there .

10. kiko007

Posts: 7507; Member since: Feb 17, 2016

Ohhhhhh......I'm not done with you yet lol. "When a smartphone purchase represents a big chunk of your monthly income you don’t give a flying f*ck about looking cool (unlike in the west) or trendy and want the best value for your hard earned money. In no way does Apple remotely represent a good value." Too bad that's not how it works. Luxury items such as smart phones are considered commodities. As such, said commodities aren't of personal necessity. Meaning the people you are claiming to be more "practical" than us westerners are guilty of the same trendy tendencies. BTW, that last sentence is extremely subjective. Ifyou gave me the option of the iPhone or all those Micromax phones and whatnot, I would choose the iPhone every time. The reason: support, which none of the phones you mentioned get any of.

47. TheOracle1

Posts: 2340; Member since: May 04, 2015

When you remove your head from your arse, look up the definition of a commodity first. "Luxury items such as smart phones are considered commodities. As such, said commodities aren't of personal necessity." Commodities are by definition of a personal necessity (oil, salt, sugar etc). So how does a luxury item become a necessity? Smartphones and the Internet are a necessity in the modern world and thus desirable across all income levels. China and India account for about two-thirds of mobile phone subscribers worldwide and can't be ignored by any major manufacturer including the almighty Apple. They've ignored it for so long and are paying the price. They don't have a phone that can compete in significant volumes and their business model doesn't allow them address that. We're not talking about high end phones here Einstein, we're talking about total sales and there are many sub $100 Android phones that are very competent performers. Fun fact is that the average smartphone sold in India is $150 but even at that price point Apple can't compete. They simply can't offer a sub $200 phone in China or India because it would cannibalize their sales of their overpriced products elsewhere. Write down the term Emerging Markets and try to remember it. Also do some mathematics and try to get it into your thick Donald Trump skull that 1% of 1.2 billion Indian subscribers (not necessarily annual buyers) equals 12 million people. If Apple could sell that number to the 1% that can afford it in India there would be a big Circle Jerk in Tim Cooks office. But they can't and the numbers prove it. People like you still laughing at China are simply ignorant. IIRC China holds about 70% of US debt with money derived from their awful economic structure. It doesn't take a genius to figure out that India is the next big thing. If not why was Tim Cook there for a week in April? I bet he wasn't telling the Prime Minister that his country and populace are irrelevant and he just wanted to see the Taj Mahal.

64. peacetoallfellas

Posts: 76; Member since: Jul 15, 2016

well said

65. peacetoallfellas

Posts: 76; Member since: Jul 15, 2016

Tim cook know that india will play a crucial role in driving their profit up

26. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Well poor people do have iPhones. "POE" peoples can't afford and don't buy iPhones. When you consider than more than 3/4's of the planet has an income that is less than "$400USD PER MONTH", there is no way Apple is going to sell any product to the vast majority of them. The reason Apple doesn't tailor their products to poor people, is you can't make as much money. It calls for volume and less profits. Apple is all about maximizing profit. That is why they use the cheapest components and by them to be used in 4 years worth of products. Don't don't make anything, they don't have factories, they have a minute amount of employees. People always wanna brag about Apple's money. Where has it gotten them? With ALL of apple's products shows double digit slides in sales, Apple should be gunning for making the top product. See here is what Apple didn't count on. See when Apple made the Mac, that got a huge jump on everyone. It took 5 years before Microsoft had a viable option to compete with Apple. Apple talking about iOS was 5 years ahead of everyone else was all smoke and mirrors. Microsoft was already using Windows on mobile. They just didn't innovate with it. Because businesses don't need gimmicky features. MS messed up when they tried to bring Windows Mobile to consumers and they hurt their real user base trying to compete with Apple. MS will never recover from that blind mistake. It took Apple 9 years to sell 1billion iPhones. While the top OEM did it 2 years ago and they started getting serious far later. I mean just put that in context. Samsung has always made phones. But they didn't get serious about it until they released the first Galaxy S to go directly against the iPhone That was in 2011. Samsung has sold 1.2Billion devices since the release of the S. Before that, no one even cared about Samsung. They sold over 1billion devices running there TW/Android combo in just under 5 years. Who si the true beast? The only reason Apple gets so much attention, is because they are a US corporation. But they are nothing more than a US branded Chinese tech company who makes cheap crap and sells it to rich fools who don't question what they buy. They just buy simply because they can afford it. Poor people have to get true value for their money, because they don't have the jack to waste. A rich person could care less if his phone dies. He/She will just go buy another without even carrying. Those are the people Apple wants. Because those people aren't going to question quality issues. Only poor people do!

14. Macready

Posts: 1824; Member since: Dec 08, 2014

", they still make 4 to 5 times the profit of everyone else in this business" Fact check: Apple posted a $10.1 billion operating profit for the whole company last quarter, Samsung a $3.87 billion operating profit for just their mobile section. That's a factor 2.6, even though it includes all divisions for Apple and excludes all the profit Samsung generated through parts sold to others (such as Apple). Furthermore, the current trend is downwards and upwards respectively for both companies, with Apple posting 28% lower operating profits and Samsung a 56% increase. At that rate, they lose "dominance" within 2 years and their whole income model is largely built on the leverage of being able to pressure/keep vendors, suppliers and customers (lock in) for being that large player. Meaning, every loss of dominance in any of those chains, can hurt double.

18. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

We aren't talking about profit here. Every time you talk about Apple you talk about how much money they make. We don't give a s**t about how much money they make. How much money they make is not an argument. Apple makes more money because they spend less money than any OEM. When are you going to get that through your thick closed minded scull. Apple doesn't make their own s**t. They outsource everything except the design of the phone and the CPU. Everything else is done 3rd party which is cheaper. Consider how Samsung made only $2B less in profit for their size company, shows Samsung actually makes MORE money that Apple, but they also spend far more money. Appel doesn't have 300,000 employees. Apple doesn't have factories. Apple doesn't have subsidiaries. Apple spends less R&D than almost any tech giant. Even Google who makes no hardware at all, has a larger R&D budget than Apple has. According to this from 2011, Microosft spent almost 5 times as much money on R&D vs Apple -http://www.insideris.com/wp-content/uploads/2012/07/rdspendingapplemicrosoft.png Ever here -http://bgr.com/2015/11/30/apple-vs-google-r-and-d-spending/ We aren't talking about profits. We are talking about why Apple can't penetrate India. Its because of product pricing. If what Appel make sis yoru only argument. Than tell me why a company with so much $$$$$$ can't make an affordable phone for India, without regurgitating a model they made 5 years ago? But yet everyone else is providing new phones to them that in many cases are equal or better than the iPhone at affordable cost. The S6 Edge is better than even the present iPhone models and it can be purchase for what is equal to $580USD. Why does the iPhone cost even more than that in India for a year older model? Oh and don't give me BS about currency. I already check the value and did the math. The iPhone should not cost more than $100 or so over USD retail pricing. PERIOD. No matter which country because they can reduce the retail cost for any country to make them all be similar. India is not a 3rd world country anymore.

21. kiko007

Posts: 7507; Member since: Feb 17, 2016

Kay. I'm just gonna let you be wrong again. No point in using logic with someone like yourself, who is clearly illiterate to how the business world works and biased beyond reconciliation. Your "Samsung is my God!" nonsense is utterly sickening. I will never buy products from them because of people like yourself.

28. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I know how business works. I own 2 small businesses. So I know for a fact I know more than you. My argument to you was simple. I could less how much money a company makes. They are suppose to make money. My arguemtn is, you keep using the MONEY Apple make the most profit BS, as if it means something. I don't care what they make. What I care about is thr result. The results are Apple is one of the lowest seller of PC's, yet they have one of the worse reliability rates. Example, when it comes to Apple vs dell. Apple sells 1.5M computers on average per quarter, while Dell still sells 10M+. Apple has a failure rate of 17% while Dell is at 18%. Even if you reduced all of dell failed PC's and you turned all of apple failures into working computers, Dell will still have far more reliable product in peoples hands. Companies that sell more tend to have high unreliability. It's quantity over quality. Yet Apple has a 25% failure rate on a single phone model. When they have sold only just over 200M in a year. Just think 1/4th of all the phones they make failed. Yet Samsung sells 320M phones and out of all the cheap phone they make, none of them even made the failure rate list and the phones that did, the S6 only had a 7% failure rate. What they tells me is Apple makes crappy overpriced products and their profit on selling garbage is equal to McDonald's. Samsung is not my God. I could give 2 s**ts about Samsung. I buy whatever phone works for my need. Unlike you I've owned phones from nearly all brands that have ever been sold in the USA. When I bought my first smartphone, you likely wasn't even born yet. So you can't tell me crap about business. The only reason you argue money, because it si the only thing Apple has a lot of. Either you make money or you die. Thus its not an argument. I will never say Apple needs to make products for poor people. I will say if Apple wants a chance in markets that have nothing but poor people, they need to find a way to do it. If not, Apple will never make headway in places like China or India. EVER! Right now the iPhone is not the most sold phone in the USA. If Huawei or any of the Oppo brands start selling here by the millions, offering iPhone-like capabilities at 505 the price, what do you think I going to happen to apple? Rich people like deal too. After all goofy, how do rich people get rich? They get rich by cutting cost and cutting corners where possible to save a quick buck. You're the one who actually needs to learn how business works. Also based on facts, the largest majority of people who buy Appel products are not rich or even middle class. if you combined all the people in the world who are considered rich, they would be less than 1/3 the US entire population. On Forbes list of rich, the lowest person is worth $6B. Only 2% of the US population is rich. So who else in the US you think is buying the other iPhones? But you say I'm dumb. LEARN HOW TO COUNT 1ST

30. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

The reason you always toop to the level of an ant, is because you can't argue. You are like a gun with one bullet. If that bullet doesn't kill its intended target, YOU'RE DIED. Just like every other troll. I don't care what brand you prefer. I don't think Apple is your God, simply because you prefer an iPhone. I don't care what you use, just don't make false claims. I could care less what the hell you do with your our money. I don't care if you make up some BS excuse as to why you claim you wont buy a Samsung product. That's YOUR lose not mine. That is how I know how childish you are. Because an Adult doesn't classify their buying decision on how someone else feels. My dad for years was ridiculed by friends and family for always buying Chrysler cars. Yet he never had a lick of trouble. While those fools were hating their cars and having issue with both foreign and domestic brands, he had his until they were paid for and more before he decided to get another. Expensive does not mean better. That is why I don't by Appel products. I like them. I don't buy them, because there are idiots who think Apple can do know wrong. I don't buy them because they don't offer any benefit at the extra price. Why wuld I pay $1700 for a MacBook, when I can get a Windows PC that does more and get even better components for less money? Why should I pay Apple $800 of an iPhone that doesn't have the features I must have when I can pay the exact same price for a phone which has all the features I need and bonus features too. ITS CALL MATH. Its an equation people with your brain can't handle. I could easily also by cheap Android phones. I don't need a Galaxy. Just like even though Bill Gates is rich, he still own a Prius. Why? Because not everything is about money. Since money is your only argument, that means you don't have an argument. There are fanboys of all products. When I was an Apple fan for years, I had to deal with all the Windows fanboys for years. As a Windows users, I get into it with Apple fanboys all the time and their argument is the same as yours. You all sound like you are reading a script. When are you fools going to learn is money can't save you from dying? Ask RIM, ask Nokia, Ask Palm, ask Apple, ask Microsoft. When you opponent has 90% of a market, the changes of you beating them in said market is zero. The only way you can beat them is, others start ripping at their market. The only reason why Apple is where it is, is because Android brought down the heavy hitters of Blackberry, Nokia/Symbian, Palm and others. Android made their markets small enough for Apple to beat them. If it wasn't for Android, it would have taken Apple another 5 years to be top dog before the year they actually did so. Why? Because money doesn't get you to the top. Selling the product people want to buy is what earns you that money. Apple who was on top of computers, music players, phones, and tablets; are now falling to the bottom.

54. insanity99

Posts: 104; Member since: Feb 28, 2015

HAhaha. Never get tired reading your comments. I'm learning a lot from you. Try to breathe sometimes before posting or replying.

36. phonearenarocks

Posts: 607; Member since: Mar 26, 2015

@kiko007: So, we'll close the chapter with one final point, you say that average phone costs $70 there. OK, Granted! But why is Samsung selling more phones even in the premium segment than Apple there? One simple answer, Apple took people for granted and people gave a s**t about it in return.

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