Apple has a meager 1% market share in India
Apple (AAPL) stock has fallen ~30% since October as investors worry about Apple’s stagnating iPhone sales. The company has struggled to get a foothold in China, where it faces stiff competition from local rivals offering lower costs. China, the world’s biggest smartphone market, is still an important market for the iPhone maker.
According to The Wall Street Journal, Apple also continues to struggle in India, the world’s second-biggest market. Shipments of iPhones in India have fallen 40%, and Apple’s market share in the country has narrowed to 1% from 2%.
Apple’s iPhones are more expensive in India
Indian consumers may be balking at the steep prices of the latest iPhones, which attract a tariff in the country. The depreciating rupee has raised that price tag even further, with base models of the iPhone XS costing an equivalent of ~$1,400 in rupees.
Instead, Indian consumers seem to prefer lower-cost smartphones. Chinese vendor Xiaomi, whose popularity has surged in India, has been consistently cornering a higher market share than Samsung (SSNLF). In the premium smartphone market, OnePlus has emerged as a leader. Although Apple CEO Tim Cook has been bullish on the company’s prospects in India, pointing at the country’s growing salaries and young, tech-savvy population, things haven’t yet panned out there as he may hope.