Tim Cook who is the CEO of Apple declares the company’s earning call on 30th January 2019 for the first quarters with analysts. In this session he somehow missed stating India anywhere in his call. It was quite odd that he didn’t mention India as Cook in his earlier quarterly earning calls has spoken about Apple’s performance in India. Even though, he explains the factor behind the struggle in sales of iPhones in markets which also comprises India.
Tim Cook explains reasons behind slow iPhone sales in emerging markets like India
Cook pointed out that in some emerging markets weak macro-condition were more intense than what the company predicted in China. He also said that foreign exchange is also an additional key factor for the reason of slow iPhone sales in emerging markets.
Cook said, “The relative strength of the US dollar has made our products more expensive in many parts of the world. The foreign exchange issues amplified the differences in international markets, in particular, the emerging markets which tended to move much more significantly versus the dollar.”
During the first quarter, the sale revenue of Apple iPhone fell by 15% according to the earning calls stats which was shared by Apple. However, in the first quarter 2019, the active installed base of Apple devices raised at its peak point of 1.4 billion.
According to some reports, Apple has an intense pressure on the sales and number of iPhones. Cook said, “iPhone subsidies are becoming increasingly less common.”
Cook also further admitted that the Apple’s battery replacement programme made it low-priced and proficient to exchange the battery for millions of iPhone users which in outcome make them hold onto their present iPhones and too for longer period.
Apparently, the issues of Apple Company in China are increasing day by day and due to which the company is having a lot more pressure in finding a way to grow in Indian market. For this the Cupertino Tech. Company has advised for tax relief and additional inducements from the Indian government to start accumulating high end iPhones, also to open its official stores in all over the country.
India is well thought out to be the second largest smartphone market in the world and the first one is considered China. In the meantime, Tech companies such as Xiaomi and Samsung have managed to make their place in Indian market and to get good share from it. Apple on the other hand is still facing problems to get that good share and place in the Indian market.
Apple with the reported market share of just 2% is struggling a difficult battle. According to some reports, tariffs on imported smartphones as well as weakness of Indian currency in contradiction of US Dollar have also affected the iPhone sales in the country.
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