Apple iPhone shipments plunge 42% in India during Q1

Apple iPhone shipments plunge 42% in India during Q1
While India is the second largest smartphone market in the world, its status as a developing country means that high priced flagship phones do not sell that well in that market. That is one of the reasons why, when Apple started manufacturing the iPhone in India back in 2017, it started with the low priced iPhone SE. The latter, which looks like the iPhone 5s and carries a 4-inch screen, was priced at the equivalent of $250 USD in India. Not only did producing the iPhone locally allow Apple to get in line with Prime Minister Narendra Modi's "Make in India" campaign, but it also helped Apple avoid a $100 import tax per unit that it would have had to pay otherwise.

Apple stopped production of the iPhone SE and has started manufacturing the iPhone 6s in India. Back in May, we showed you a local ad for the "Incredible" iPhone 6s priced at the equivalent of $393 USD. According to The Economic Times, Apple is making some changes to its iPhone production plans in India. This dovetails with reports we passed along last year that said Apple will start manufacturing some of its higher priced models in India. Contract manufacturer Foxconn, whose Indian facilities are used to assemble the iPhone, has started rolling the iPhone XR off its Indian assembly line on a trial basis. By the end of this year, Apple could start producing 250,000 higher-end models each month in India, exporting 70% to 80% of this production to other countries. The more iPhone production it can move out of China, the less likely Apple's most important product will be hurt by import taxes and tariffs in the states. One person familiar with Apple's plans says, "Commercial production of iPhone XR and the models above that should begin by the year-end at Foxconn (in India) and exports will be part of the plan from day one."

Apple saw iPhone shipments rebound in India during April, but then ran into the new OnePlus models


Meanwhile, shipments of the iPhone in India during the first quarter declined a whopping 42% to 220,000 units. Apple did see a rebound in April as price cuts and special deals helped deliveries soar to 200,000 units for that month, nearly the same amount it took the company a whole quarter to ring up at the beginning of this year. But in April and May, Indians turned to the new OnePlus 7 models offering premium specs at a competitive price. Counterpoint Research expects Apple to ship 1.5 million to 1.6 million handsets in India this year; that would be a 10% to 17% decline from the 1.8 million it sold last year and as much as a 53% decline from the 3.2 million iPhones it shipped in India during 2017. Neil Shah, research director at Hong Kong-based Counterpoint says, "Apple had a disappointing run in 2018 and the outlook for 2019 looks weaker, with shipments having fallen further compared to last year, with the exception of April, thanks to price correction that month."



Companies that are doing well in India include China's Xiaomi, with its value for money pricing. And Samsung has found gold with its new Galaxy A mid-range models. When the line launched back in March, Samsung sold over 5 million units in India during the first 70 days. This generated sales in excess of $1 billion dollars.

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51 Comments

1. kennybenny

Posts: 211; Member since: Apr 10, 2017

Lol..... Who would want to buy a 4 year old phone when they can get a mid to high end Xiaomi or Oppo for the same or lower price?

8. TheOracle1

Posts: 2151; Member since: May 04, 2015

Yep. Apple don't have a phone that fits the Indian market. They were selling the ancient SE at the time for more than the excellent Redmi Note 3. Ludicrous.

43. sgodsell

Posts: 7028; Member since: Mar 16, 2013

What kills me is they sell well over 100 million smartphones now every year in India. Yet Apple continues to decline over there, where as Android smartphones continue to grow every year. Apple doesn't have a chance over there, especially since none of them are locked into Apple's ecosystem. That's more of a North American thing.

9. Papa_Ji

Posts: 812; Member since: Jun 27, 2016

in India at the price of 6s you can get SD 855 powered Redmi k20 pro....which is better in every way than any of iPhone out there. Indians are not fool.... its simple maths 1 iPhone Xs max = 6 Redmi K20 pro (ie. ~12 years of full software support and 20+ years of MIUI updates )

16. shm224

Posts: 276; Member since: Mar 19, 2015

I'm glad that Indians aren't as vain as its insecure neighbors from China.

21. OneLove123

Posts: 881; Member since: Aug 28, 2018

Yep, cause they want to be American so bad in China.

34. oldskool50

Posts: 962; Member since: Mar 29, 2019

The only reason Indian don't buy iPhone is because they can't affairs them, not because they don't want them. Don't get it confused. But yes they aren't stupid either. Only minimum wage rich Americans are stupid to buy the Apple overhyped bending train. And yes I am an American who is smart enough not to buy a new iPhone.

27. NateDiaz

Posts: 1084; Member since: Mar 03, 2018

Shut up son you suck at math everyone knows that.

44. cmdacos

Posts: 3969; Member since: Nov 01, 2016

Grammar is even easier to understand then math...

45. sgtdisturbed47

Posts: 965; Member since: Feb 02, 2012

The irony

46. NateDiaz

Posts: 1084; Member since: Mar 03, 2018

"then math" Okay Grammar guru.

49. Vancetastic

Posts: 951; Member since: May 17, 2017

Look up “comma”, and it’s usage.

2. M4HESH

Posts: 6; Member since: Jan 04, 2019

Thank you fellow indians, let's hope it looses until they start making flagships in the country.

3. Mike88

Posts: 228; Member since: Mar 05, 2019

I thought India is a rich country, all that royal heritage and all.

11. Gryffin

Posts: 49; Member since: Dec 19, 2018

That was ancient India, then british looted us and left us with dirt.

19. mackan84

Posts: 282; Member since: Feb 13, 2014

Ain’t the first indians getting robbed of their land and wealth from the British empire...

4. Guseinguliev

Posts: 101; Member since: Mar 04, 2019

It is very expensive, in spite of that, 9 months have passed since the presentation of the iPhone xs. Now we are officially worth $ 1100.

5. rkoforever90

Posts: 417; Member since: Dec 03, 2011

Iphone 6s still on sales lol.

37. Chidoro

Posts: 168; Member since: Sep 20, 2016

And still supported. Lol indeed

6. scarface21173

Posts: 645; Member since: Aug 17, 2014

Iphone just to expensive

7. obedchuni

Posts: 328; Member since: Jun 16, 2014

iphone se and 6s are doing fine lol.

10. mahima

Posts: 726; Member since: Nov 20, 2014

If iphone 6s goes down 50% i won't mind buying 1 for secondary phone

12. iczer

Posts: 154; Member since: Oct 14, 2015

Apple is doomed!

14. Be_Mine

Posts: 219; Member since: Dec 29, 2013

iPhone XS Max 4 GB Ram 64 GB Storage = 1,09,890 Indian Rupees OnePlus 7 Pro 8 GB Ram 257 GB Storage = 53,000 Indian Rupees Your Choice.

18. blingblingthing

Posts: 916; Member since: Oct 23, 2012

It's that simple. Why should anyone not buy the best they can afford? Even if they were selling an iPhone 7, it's not in the same league as a K20 pro etc.

42. Chidoro

Posts: 168; Member since: Sep 20, 2016

One will he supported and viable for at least 5 years and the other left to rot in 18 months. Upfront cost is not equal to cost of ownership. Your choice.

50. Marcwand3l

Posts: 426; Member since: May 08, 2017

You want to say 4 years and the other will get support for 3 years. Not a bad deal taking in consideration the the One Plus is half the price.

15. shm224

Posts: 276; Member since: Mar 19, 2015

no wonder Jonny jumped the ship.

30. oldskool50

Posts: 962; Member since: Mar 29, 2019

Hey iloveapps/peaceboy. Apple sales drop 42% in India and there is an iPhone model made there. I wanna know how you feel about that. See that's why you should shut up about Samsung. Samsung sales are slowing dropping, while Apple is having a catastrophic fall. Tim Cook is gonna be looking for a new job. Wonder how long before Schiller leaves.

31. oldskool50

Posts: 962; Member since: Mar 29, 2019

If Apple wants to compete with Android, they are gonna have to offer newer cheaper priced iPhones If they don't, then they are done. I don't know who at Apple thought that in China and India that an expensive iPhone was gonna sell in huge numbers. Whomever that was, they should be fired! Was it you Cook?

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