Why can’t the iPhone dominate the Indian market?
The iPhone was created by Apple Inc., a technology company based in Cupertino, California. The iPhone was the brainchild of Steve Jobs, Apple’s co-founder, and former CEO, and was developed and released in 2007.
Prior to the iPhone, smartphones were generally not very user-friendly and were primarily used by business professionals. The iPhone was the first smartphone to feature a touchscreen interface and a mobile operating system (iOS) that was designed specifically for a touch-based interface.
The iPhone was initially released in the United States, and it quickly gained popularity around the world due to its innovative design and user-friendly interface.
The iPhone has become increasingly popular in India in recent years, due in part to the growing demand for smartphones in the country and the expanding middle class with disposable income.
In addition, Apple has made a number of efforts to make the iPhone more appealing to consumers in India, such as introducing financing options and partnering with local retailers.
These efforts have helped to increase the brand’s visibility and reach in the Indian market and have contributed to the growing popularity of the iPhone in India.
And even Apple CEO Tim Cook announced, “Apple’s revenue in India nearly doubles on iPhone sales”.
But why do I think the iPhones can't dominate the Indian market? Here's the fundamental approach
Apple iPhones hold a market share of 52% in the USA which is approximately equal to $115 Million active users.
And iPhones cater to only 4.4% of India which is 7 Million users (As per Statista).
With these numbers, do you think iPhone can acquire a dominating share in India in the next 10 years?
I don’t think it can even cross the 15% mark even after a decade. Here’s why
iPhone released in 2007 at $499
The latest iPhone 14 starting price is $799
If we take an average price of starting version, that is $649 ~ ₹53,772
The average Indian Salary is ₹32,840 /Month
The average US citizen’s salary is $5809 ~ ₹4,81,359/Month
The price of an iPhone is fair in terms of USA markets as it’s just 8% of an average salaried income and it’ll come with the advantages of
it’s cheaper for USA folks than other APAC regions with the advantages of
▶ Grabbing the iPhone with a carrier and only costs them a monthly fee.
▶ iPhone Upgrade Program when new phone launches
▶ Security and Customer service
▶ Since their community uses iPhones for Facetime and iMessage (a reason why Whatsapp isn’t widely used in the USA)
Coming to Indian markets iPhone price is 40% higher than the average Indian salary and users have to buy without any advantages like
▶ Upgrade to new iPhone
▶ Jio and Airtel do offer carrier contracts but not to the advantage of users
But still, we see people in India drive crazy over iPhones due to various reasons like
▶ Status queue
▶ Luxury / Fashion Accessory
▶ Because it’s iPhone
▶ Accomplishment (As a motivation factor)
▶ Security
▶ Hard to switch back to Android
Data says once you become an iPhone user, it’s very hard to shift to Android or any other OS due Apple ecosystem which blocks users by pairing all the products and experiences.
So, whenever someone comes and says Apple will take over and dominate the Indian market by comparing it with US markets. Just tell them to see the real India which is still the value to money paid and will continue to be the same.
Btw, What are your thoughts? Let me know in the comments
