Over the past few quarters, Apple has been losing market share outside the US with first-time smartphone buyers in countries such as India, Brazil and Indonesia opting for Samsung and other cheaper handsets running on Google’s Android software.
BANGALORE/KOLKATA: Apple's latest iteration of iPhones — 5S and 5C — will expand the company's portfolio but do little to help increase its share of the world's fastest-growing smartphone market, analysts and industry executives said. With no indication from Apple that it is keen on becoming a significant player in India just yet — its share of the smartphone market by volume is less than 2 per cent, according to market researcher Canalys — the new phones are expected to draw interest mainly from well-heeled aficionados.
"The two new iPhones will attract a niche audience like affluent youngsters and die-hard Apple fans as they are priced high and come in different colours," said Himanshu Chakrawarti, CEO of Mobile Store. Mobile Store is India's largest mobile phone retail chain.
India has not been a critical market for Apple as majority of the smartphones sold in the country fall in the Rs 7,000-12,000 price range. Telecom analysts and retailers said the iPhone 5S and 5C are priced much higher than they expected and are unlikely to find many takers here even as thousands of mobile users migrate from basic handsets to smartphones each day.
Chakrawarti said he expects the iPhone 5S, which comes with a built-in finger-print scanner, to be priced between Rs 45,000 and Rs 50,000. The 5C, he said, could be sold between Rs 35,000 and Rs 40,000. The iPhone 5 is sold in India for around Rs 45,000. An Apple India spokesman said the company has not yet decided on the price of the devices or when they will be launched here.
Over the past few quarters, Apple has been losing market share outside the US with first-time smartphone buyers in countries such as India, Brazil and Indonesia opting for Samsung and other cheaper handsets running on Google's Android software. In India, Canalys estimates that Samsung accounted for 36 per cent of all smartphones sold in the country between April and June. In terms of value, Apple's market share was 5 per cent compared with Samsung's 46 per cent.
"The two new iPhones will attract a niche audience like affluent youngsters and die-hard Apple fans as they are priced high and come in different colours," said Himanshu Chakrawarti, CEO of Mobile Store. Mobile Store is India's largest mobile phone retail chain.
India has not been a critical market for Apple as majority of the smartphones sold in the country fall in the Rs 7,000-12,000 price range. Telecom analysts and retailers said the iPhone 5S and 5C are priced much higher than they expected and are unlikely to find many takers here even as thousands of mobile users migrate from basic handsets to smartphones each day.
Chakrawarti said he expects the iPhone 5S, which comes with a built-in finger-print scanner, to be priced between Rs 45,000 and Rs 50,000. The 5C, he said, could be sold between Rs 35,000 and Rs 40,000. The iPhone 5 is sold in India for around Rs 45,000. An Apple India spokesman said the company has not yet decided on the price of the devices or when they will be launched here.
Over the past few quarters, Apple has been losing market share outside the US with first-time smartphone buyers in countries such as India, Brazil and Indonesia opting for Samsung and other cheaper handsets running on Google's Android software. In India, Canalys estimates that Samsung accounted for 36 per cent of all smartphones sold in the country between April and June. In terms of value, Apple's market share was 5 per cent compared with Samsung's 46 per cent.
Anshul Gupta, principal research analyst at technology research firm Gartner, was of the view that Apple's intention is to continue with low volume sales and high margins. "I don't think Apple wants to play the market share game right now," he said. Apple, he said, must launch its new handsets by December as rivals Samsung, LG and HTC gear up with their product launches for the upcoming festive season. "If Apple doesn't hurry up, they'll be at a disadvantage."
Apple's trade partners, including the exclusive Apple Premium Resellers and multi-brand outlets, said there are indications that the two new models will be launched in India next month. Brian Bade, chief executive of Reliance Digital, which also operates the exclusive iStore chain for Apple, said the pattern of shorter gaps between global and India launches suggests that the models will be available before Diwali.
Starting this year, Apple has mounted an advertising and marketing push, especially for its older iPhone 4 model that will no longer be sold in its home market. In recent days, it has been targeting students with discount and financing schemes for its iPad tablets and iMac laptops. While earlier Apple was an insignificant player in India, the increased attention to this market has resulted in some gains, but not enough to make it a significant force in the smartphone segment.
Jayanth Kolla of telecom research firm Convergence Catalyst said he expects the latest iPhones to barely cause a ripple for Apple in India. "Android is growing crazy, but Nokia is being sold and HTC is on crutches, so Samsung is its only serious rival. That will let Apple play in the niche category it falls into as of now," he said.
Apple's trade partners, including the exclusive Apple Premium Resellers and multi-brand outlets, said there are indications that the two new models will be launched in India next month. Brian Bade, chief executive of Reliance Digital, which also operates the exclusive iStore chain for Apple, said the pattern of shorter gaps between global and India launches suggests that the models will be available before Diwali.
Starting this year, Apple has mounted an advertising and marketing push, especially for its older iPhone 4 model that will no longer be sold in its home market. In recent days, it has been targeting students with discount and financing schemes for its iPad tablets and iMac laptops. While earlier Apple was an insignificant player in India, the increased attention to this market has resulted in some gains, but not enough to make it a significant force in the smartphone segment.
Jayanth Kolla of telecom research firm Convergence Catalyst said he expects the latest iPhones to barely cause a ripple for Apple in India. "Android is growing crazy, but Nokia is being sold and HTC is on crutches, so Samsung is its only serious rival. That will let Apple play in the niche category it falls into as of now," he said.
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