Apple hasn’t penetrated the fast-growing Asian markets
Apple’s (AAPL) flagship device, the smartphone, has failed to gain prominence in India, China, and several other Asian markets. While smartphone sales have plateaued globally, many Asian markets have seen growth in smartphone sales. The iPhone accounted for only 1% of smartphone sales in India in the second quarter, according to Counterpoint Research.
The ever-increasing iPhone market didn’t include the price-sensitive Indian population. With additional tariffs, the iPhone is even more expensive in that country. Cheaper phones offered by Xiaomi and Samsung (SSNLF) are the popular smartphones among Indians.
Apple’s latest iPhones are expensive
India and China are the two largest smartphone markets. Local companies dominate the smartphone market in China.
Apple has also not been able to penetrate Asian markets with potential such as Vietnam, Indonesia, and Thailand. iPhone sales have been sluggish in the last few quarters, with sales coming mostly from mature markets. Apple may need to find a way to sell in Asian markets.
Apple recently unveiled three new models of its premium iPhone—the iPhone XS Max, the iPhone XS, and the iPhone XR—with prices of $1,099, $999, and $749, respectively. The basic versions of the iPhone 7 and iPhone 8 cost only $449 and $599, respectively.