Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL)’s Indian Overhaul Is Working: Research In Motion Ltd (BBRY)

Page 1 of 2

The second-largest country in the world by population has always been weak spot for Apple Inc. (NASDAQ:AAPL) and the iPhone. There are numerous reasons why the company faces competitive hurdles with Indian consumers.

Perhaps most important is that wireless carriers in the nation don’t subsidize smartphones, making rival devices much more affordable. On top of that, distribution is highly complex and Apple Inc. (NASDAQ:AAPL) is unable to open its own retail stores in India, which means it has far less control over the buying experience than it would like. Last summer, Tim Cook cited the “multilayer distribution” in India as a particular challenge, since that adds costs along the way.

Apple Inc. (NASDAQ:AAPL)

However, Apple Inc. (NASDAQ:AAPL) has overhauled its Indian operations in recent months in order to grow its presence in the region — and those efforts are working.

Catching up with Sammy
One of the more important aspects of Apple Inc. (NASDAQ:AAPL)’s changes has been to significantly broaden its distribution network. Many Indian consumers prefer to purchase mobile devices from smaller mom-and-pop shops as opposed to big branded retail stores. By strengthening its relationships with these local outlets, Apple Inc. (NASDAQ:AAPL) is starting to gain more ground, according to a recent CNN report.

IDC estimates that Apple Inc. (NASDAQ:AAPL) has quickly grown to grab the No. 2 spot in the Indian smartphone market by revenue. Like in other developing economies, Samsung is still top dog due to its willingness to target every conceivable price point. Since Apple Inc. (NASDAQ:AAPL) targets the high end of the market, it has a relatively lower unit share, even as its revenue share is on the rise.

Smartphone Vendor Q4 2012 Unit Share Q4 2012 Revenue Share
Samsung 40% 38.8%
Apple 5% 15.6%

Sources: Canalys (via The Wall Street Journal) and IDC (via CNN).

IDC research director Venu Reddy said that Apple Inc. (NASDAQ:AAPL) has made a major shift in its smartphone positioning within India.

Since Apple Inc. (NASDAQ:AAPL) has historically placed low priority on the Indian market due to these constraints, supply and availability have also suffered up until the recent changes. A month ago, IDC said iPhone shipments had soared by three to four times thanks to an expanded distribution deal with Redington, which is responsible for almost 70% of Apple’s Indian sales.

Other factors contributing to Apple Inc. (NASDAQ:AAPL)’s recent success is offering no-interest financing on iPhones and beefing up local marketing efforts.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!