Why has Apple failed in India?

Summary

The video discusses the low popularity of iPhones in India despite their global success. It highlights the high cost of iPhones in India due to import duties and currency conversion, Apple's late entry into local manufacturing, and the strong competition from Chinese brands like Xiaomi and Vivo. It also points out Apple's lack of adaptation to Indian market needs, such as credit card usage for app purchases and Siri's recognition of Indian accents, which contribute to its struggle in the Indian smartphone market.

Takeaways

• 📊 iPhones are globally popular, holding an average market share of 18.91% in mobile operating systems.
• 🌏 In North America and Oceania, iOS usage is highest at 48%, while in Europe it's 24.06%.
• 📉 In Asia and South America, iPhone's market share is around 10%, and in Africa, it's 7%.
• 🇮🇳 In India, iOS has a mere 2.9% market share, which is significantly lower than the global average.
• 💸 The high cost of iPhones in India, with a 30% premium due to import duties and currency conversion, is a major factor affecting sales.
• 🏭 Apple's attempt to reduce costs by opening a factory in India to produce lower-end models has been a recent development.
• 📱 Aggressive competition from Chinese brands like Xiaomi, Oppo, and Vivo, with localized strategies and high seller margins, is challenging Apple's presence.
• 📈 Xiaomi has overtaken Samsung to become the leading smartphone seller in India.
• 🛑 Apple's inability to adapt to the diverse cultural, religious, and linguistic landscape of India is hindering its market penetration.
• 💳 Apple's services like the App Store and Apple Music are less appealing in India due to local payment methods and competitive alternatives.
• 📱 As more Indians become familiar with Android and its ecosystem, Apple may find it increasingly difficult to gain a foothold in the future.

Q & A

Why are iPhones unpopular among Indians?

iPhones are unpopular among Indians due to factors such as high prices, aggressive competition from brands like Xiaomi and Samsung, and Apple's inability to adapt to the diverse cultural and linguistic needs of India.

What is the market share of iOS globally?

Globally, iOS has an average market share of 18.91% of the mobile operating system market share.

Which region has the highest iOS usage?

North America and Oceania have the highest iOS usage, amounting to 48%.

What is the market share of iOS in India?

In India, iOS occupies only 2.9% of the smartphone market share.

How does the price of an iPhone differ between the US and India?

An iPhone 10 that costs $999 in the United States costs over $1,300 in India after import duty and currency conversion.

What is Apple's strategy to avoid high prices in India?

Apple attempted to avoid high prices by opening its own factory in India to produce low-end SE versions of iPhones.

Who are Apple's main competitors in the Indian market?

Apple's main competitors in India are Xiaomi, Samsung, and other Chinese brands that have adopted localized strategies and aggressive marketing.

What is the impact of Chinese brands on the Indian smartphone market?

Chinese brands have taken over the Indian market by offering high-profit margins to sellers, resulting in sellers favoring these brands over others.

Why is Apple struggling to penetrate the Indian market despite its global success?

Apple is struggling in India because its branding and strategies that work in other markets do not resonate with Indian consumers who prioritize specs, features, and affordability.

How does the lack of credit card usage in India affect Apple's business model?

Since Apple's app store requires credit cards for purchases and only 1% of the Indian population has credit cards, this significantly limits Apple's potential customer base.

What is the future outlook for Apple in India according to the script?

The script suggests that if Apple does not adapt to the Indian market, it will continue to struggle as more potential customers become familiar with Android and its ecosystem.