Tech giant Apple, which was reluctant to enter India till few years ago, has turned its attention to replicate its US model of hyper sales setting up more than 500 retail stores, including penetrating the Tier 2 cities.
Currently, according to research firm IDC, Samsung has cornered 24% of market share, dropping 5% from Q2, followed by Micromax (20%) and Lava (8%). Apple, despite its change in sale strategy going for EMI-based sales is unable to withstand the competition from budget phone makers like Xiaomi and Micromax, while Samsung is already a market leader in both budget and expensive segments of the gadgets.Indian smartphones market, IDC predicts, will exceed 80-million mark in in 2014 against 44 million units sold in 2013.
Apple, which is dominating the US market, is keen to penetrate Asia now, especially India. Apple in fiscal 2014 fourth quarter ended September 27, 2014, posted quarterly revenue of $42.1 billion and quarterly net profit of $8.5 billion with international sales accounting for 60 percent of the quarter’s revenue.
In line with its current plans, Apple which was able to sell 1 million in the first 3 quarters of 2014, is aiming at tripling the number in the next three quarters. Moreover, from its earlier franchise model that envisaged larger flooring space of 2,000 square feet is now coming down to 500 square feet, suitable for smaller cities beyond the state capitals. The TOI report, quoting sources close to Apple India, says that the tech giant may involve local distributors including Ingram Micro and Redington for retail sellers.
The source told TOI: “The company (APPLE) is finalizing plans to become a serious player in India, which is being seen as a strategic and one of the most promising markets globally.”