iPhone sales in India are growing and were up 76% last quarter, while Apples sees a slowdown in sales in other countries like China.
While, for the first time in 13 years, Apple saw a drop in revenue in iPhone sales, India stands distant from the phenomena as sales grew up to 76 percent for the company's flagship smartphone in the last quarter. Company CEO, Tim Cook suggested that this is just the beginning of more future growth in sales, as the demographics suggest that the average age of current Indian buyers is just 27.
With an economic downturn in China, Apple is seeing a sudden shift in the market and it seems that the company may focus its energies and efforts toward India. It is stipulated that India could overthrow China, becoming the largest market for Apple in future. Analyst, Neil Shah from Counterpoint Technology Market Research suggests that India cannot replace China as a cash cow market for Apple in the immediate future as the company averaged to 450,000 smartphone shipments per quarter in India against 15 million per quarter in China last year, but if the sales growth rate continues at a similar rate things could be different.
He also suggests that India may take time to surpass China as currently 70 percent of smartphones sold here are below $150 and Apple owns at a meager market share of 2 percent.
Both China and India show a similar streak of young consumer willing to spend heavily, since Apple is considered to be a status symbols in both the countries. With the growth of the Indian economy along with the growth the in the disposable income of the youth in India, it seems the future sales would be favorable to Apple.
Apple needs to expand its distribution channel in India and for the same, the company has also filed an application with Department of Industrial Policy and Promotion (DIPP) to open more of its own stores in India.
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