Apple Isn’t Doing so Hot in India Due to iPhone Pricing and Business Strategy

The “world’s biggest untapped tech market” hasn’t been so fond of Apple’s efforts to break in, according to a new report.

The Wall Street Journal has published a story on Tuesday that digs deep into Apple’s lackluster effort to jump into the Indian tech market, showing “little success so far” despite Apple’s internal focus on finding growth within India because of the potential there. However, it apparently comes down to the fact that Apple doesn’t want to change its business strategy, and, because it won’t launch a variety of different devices at varying price ranges, customers in India haven’t flocked to Apple.

In the end, it comes down to how Apple prices its devices, and right now they are simply too expensive to make any kind of impact in India:

“At the heart of the issue is Apple’s reluctance to change its traditional business model for selling the iPhone. Rather than make a range of handsets, it has prioritized a limited number of coveted products, sold at high prices—a strategy that revived the company after near bankruptcy in 1997 and helped make it the first U.S. public company to reach a $1 trillion valuation.”

Compared to 2017, Apple’s shipments of iPhones in India has fallen by 40 percent according to the report. In the region, the iPhone SE still goes for around $250, but iPhone prices can get as high as $1,950 — which is much higher than the budget of many customers in the region. As a result, Apple’s market share within the region has dropped to less than one percent.

What may change is Apple’s actual presence in the market, because right now Apple has to rely on third-party authorized resellers to move product. Apple has yet to launch a physical storefront presence within India, but the company does see some potential there — as long as the Indian government is willing to work with them moving forward.

Still, sounds like Apple still has a very tall mountain to climb in India, and it may take a drastic change of business to make it happen.

[via The Wall Street Journal]