Can the New iPhone Penetrate Emerging Markets?



Market penetration 

Apple is looking to increase its penetration and market share in emerging markets like India (INDA) where it accounts for less than 2% of the overall smartphone market. Although the iPhone is considered to be a niche product in most developing countries, the recently launched iPhone SE might attract users due to its competitive pricing.

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Apple views India as a lucrative market

Last month, Apple (AAPL) stopped selling entry-level iPhone 4s and iPhone 5c models in India (INDA) through official channels. The iPhone 4s was the most affordable and popular iPhone in India. It was priced at $175, 12,000 Indian rupees, to capture the low-end segment in the country.

Now, the iPhone 5s is Apple’s budget phone. Currently, it costs $350. In 2015, Apple slashed the price of the iPhone 5s in half. According to AppleInsider, Apple is “in favor of a smartphone lineup more closely aligned with mature markets.”

Apple is also seeking government approval to import and resell used iPhones in the country. India is one of the largest smartphone markets in the world. It’s the only country expected to see double-digit growth in 2016. Apple is eyeing India as a lucrative smartphone market.

One of the main reasons that Apple hasn’t been able to successfully penetrate India’s flourishing market is the price of its products. The above strategies could help the firm gain a stronger market presence in India.

According to a report from the International Data Corporation, Korean (EWY) smartphone manufacturer Samsung (SSNLF) continues to lead the smartphone segment in India with a 24% market share. Samsung is followed by domestic players such as Micromax and Intex with market shares of 16.7% and 10.8%, respectively. Lenovo (LNVGY) has a market share of 9.5% in India.


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