APPLE
In the discussions around India’s long-term growth trajectory, the country’s digitalisation push is often touted as a key driver. Its smartphone market, which is the second largest in the world, is expected to triple from its current levels to $90 billion by 2032, according to global financial services provider Morgan Stanley. For believers in the India growth story, like Apple CEO Tim Cook, this is great news.
In 2017, during a quarterly earnings call, the Apple chief had said that he was “very, very bullish and very, very optimistic about India”. In the subsequent years, it seems that the Cupertino-based company’s India bet is paying off. For FY23, Apple’s India operations reported a 48% annual revenue growth, almost touching $6 billion. More importantly, the company’s market share is estimated to rise from 4.5% last year to 7% in 2023. If all goes well, the tech major would be able to rake in $10 billion annual revenue from India this fiscal. So, how did the world leader of expensive smartphones tap into the price-sensitive market of India?
Cracking the Premium Code
The average selling price (ASP) of a smartphone in India is now at $253, approximately Rs 21,000, which is a 12% rise from the same period last year, according to International Data Corporation. The data shows that it is the premium segment—above $600—that has been showing the most growth for the past few quarters. The smartphone market is evidently experiencing a premiumisation wave, although the ASP is low compared to global standards. Experts suggest that a key ingredient behind Apple’s success in India has been the Indian aspiration to own more expensive devices.
Denne historien er fra December 2023-utgaven av Outlook Business.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra December 2023-utgaven av Outlook Business.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
SHANKAR PRASAD
C'EST LA VIE - MY FAVOURITE
Star Plus
Actor Keerthy Suresh's talents extend far beyond the silver screen. In a chat with Prachi Khanna, she talks about her growing interest in the world of investments - from real estate to tech to co-owning a cricket team
Shelter From the Storm
Taking care of 500-plus homeless was only the first of the challenges; the 24-year-old social worker has done more since
Saying No to Jugaad
In India, people often rely on a quick-fix approach to manage the daily challenges of taking insulin shots. But a Gen-Z innovator has other ideas
Green Skills Champion
An unexpected career choice was the beginning of efforts to demystify the conversation around climate change and raise awareness
Force of Change
An educator's journey that started in the municipal schools of Andheri West is helping bridge the learning gap among young students
An Appetite for Health
The 'food pharmer' has taken on some of the biggest names in the FMCG sector. His mission: to get consumers to read product labels
More Than Medals
India's success at the Paris Paralympics can inspire a new era of inclusivity
Checkmate
A new generation of chess elite, backed by early mentorship and building on the wins of the previous generation, is cementing India's place at the top
On A Strong Wicket
Team India has had a mixed month but a good year. This was the year Rohit Sharma and his boys brought the T20 World Cup back home
