Jan 24

Apple can copy the “Chinese” growth in India? Difficult! _ _ tengxun net of science and technology

BI have reported on October 26,
it is difficult to put the apple falling from the India of the momentum.
on Tuesday, apple released its 2016 fiscal fourth-quarter earnings, earnings, according to apple’s fiscal fourth quarter was $46.852 billion, $51.501 billion over the same period last year fell 9%. Net income was $9.014 billion, $11.124 billion over the same period last year fell 19%. Apple’s fiscal 2016 revenue of $217 billion, on revenue of $233.7 billion last year, fell 9%, this is apple recently for the first time in 15 yearsThe condition of the decline in annual revenue.
after the earnings conference call, apple’s chief executive Tim Cook (Tim Cook) of the company has a positive attitude in India market development prospect. India is the world’s second largest smartphone market, in the eyes of the cook, the Indian market to apple’s future prospects are better.
cook said, “the 2016 fiscal year, our iPhone sales in India market by more than 50% increase over the previous fiscal year, we believe that we just started knocking on the corner of the vast market in the future we will increase in the marketLong opportunity. ”
however, we should clearly recognize that the Indian market does not change the fate of apple’s revenue quickly.

India is not the next China apple did not release the Indian market. The specific sales data but, according to market research firm Counterpoint think apple’s fiscal 2016 iPhone shipments below 2.5 million units in India market, but still greatly exceeded 2015 in fiscal 1.6 million, which grew by 55% year on year, however, that compared with apple’s global sales, market sales of the iPhone in India is a piece of cake. Want to knowWay, only in the fourth quarter, apple iPhone’s global sales reached 45.5 million units.
all in all, so far, apple’s iPhone sales have three consecutive quarter year-on-year decline, while India markets may not be able to save apple look this weakness.
Counterpoint Neil Shah, director of the company’s research (Neil Shah) to BI said that India is a huge market, the country’s mobile phone sales of 250 million units a year — but only 125 million are smart phones, and the average price of mobile phones is only $125. The

the Indian mobile phone market is not mature, high-end smartphones in the market every year sales may only 8 million units to 10 million units, compared with neighboring China market, this of course is dwarfed. Data show that apple mobile phone sales in the Chinese market each year up to 60 million units.
however, apple’s latest iPhone income has been declining in the Chinese market. Shah said that all people want to “lay eggs” in different basket, so have expressed strong interest in India market, but you know, India’s market environment is not yet mature.
shah said, “if you haveFrom $80 to $80 portfolio of products, so for you, India will be a very good market. If you are the apple, and your flagship phone fare is $600, that the market for sure doesn’t suit you. ”
India users to buy the iPhone, but just want to buy cheap version
the Indian market is under development, so the apple may welcome some opportunity, as long as the play of the brand.
shah is expected, by 2018, India will be close to 400 million the number of smartphone users, some users might frequently upgrade their smart phones. WithoutFor several years, these users for apple, will be a good opportunity. Shah said that “apple can’t ignore the Indian market, potential customers may ‘to’ Google Android ecosystem (weibo), and not willing to change the platform.”
however, by 2018, India’s high-end smartphone market size should be expanded significantly – annual sales could reach 40 million units to 50 million units. If apple can account for 60% of the market, it means that apple’s annual iPhone sales in India market will reach 20 million units to 30000000 units, compared with the company at the current size of the market in India, but compared with the Chinese market, is still less than half.
shah believes that for apple, the most sensible measures is the introduction of beauty a money and cheap affordable mobile phones, specifically for markets such as India. If apple could produce more cheap iPhone in emerging markets, then it will be able to pursue scale effect, and then through the company’s services to drive revenue growth, after all, the service is also increasingly focus on the areas of apple. Shah said, “the apple must find ways to launch better product mix, and formulate a reasonable price. ”
what’s interesting is that apple’s sales of equipment is not necessarily a particularly modern products. Shah said that apple’s iPhone in 45% of India’s market sales is the iPhone 5 s or lower configuration of the iPhone, in the Indian market, users want to buy the iPhone, but only willing to buy cheap iPhone.
smartphones potential in India will not be too big
the cook had admitted, although has certain potential India market, but if you want to reach high level like China or other markets, there are still some way to go. In April this year, the cook had said,” the Indian market salesSmartphone is given priority to with low-end products, this is mainly because the network and the economic environment is not mature, so also is not very large market potential. “He said.” I think the Indian mobile phone market is likely to be China’s seven to ten years ago, as a result, from this perspective, the Indian market does have a certain potential. ”
as apple’s fiscal 2016 revenue decline for the first time appeared in recent 15 years, some investors and analysts are beginning to question apple’s future growth will come from where. Apple clearly see the potential of the Indian market, and want to maximize the tap into this potential.
but anyway, India market is still unable to be apple’s next in the Chinese market, cannot replace the status of the Chinese market in apple’s strategy.
the following is a cook in today’s earnings call opening a passage about the Indian market, he said, “look to the future, we will see some exciting India market development prospect. India’s largest 4 g operator Reliance Jio in India market will launch the first of the whole IP network services, and will put the 4 g services cover the whole 18000 cities and 18000 villages in India. They will be to buy the new iPhone smartphone users with a free of chargeYears of service, we will work with them, to ensure that the iPhone has excellent performance in their network. In fiscal year 2016, our iPhone sales in India market grew 50% above than last fiscal year, we believe that in this huge market, we did not touch the tip of the iceberg, the future market opportunities will increase. ”
this is cook and citigroup global markets LTD analyst James d. Suva (James d. Suva) a question-and-answer dialogue between. Suva questioning,” Tim, Peng you mentioned just now about the Indian market, we have beenDo a lot of work, discusses the issue of India’s market opportunities. We talked about the India residents’ disposable income and a lot of similar problems, however, India’s large population, you can have your comments? You’d think India someday can be more like the Chinese market opportunities? At first glance, the legal system seems to have stopped you to enter the Indian market to a great extent, but seemed to have changed it seems now. Can you tell us about the company in the Indian market more clear strategy? ”
the cook said,” for India market, I think it is essential that not only to see itPer capita income, but also to see the country in the next 10 years will go into the middle class population, as well as the population ages. If you look at India, you will find that about half of the people are under the age of 25, so you will get a very large group of young users.
overall, India’s smartphone sales market is relatively general, however, one of the most important reason is that the infrastructure has not developed to the degree of maturity. But this year, there will be a lot of investment into the field of 4 g, we will feel more happy, because it will produce a high quality network, so that get the iPhone usersChang Haode experience. So, I see a lot of factors are moving in the right direction. I also think that the government will pay more attention to the infrastructure and create jobs, this is very attractive, because you do need such infrastructure and technology to achieve these goals.
as for the Indian market can develop China as large size, I think that India’s population will be over the next decade or so more than China’s, or with China. India’s GDP, I believe, if you want to go beyond China, it also need more time, but it will not be harmful to our success in the Indian market. In fact, there will be a large number of users and a large number of the middle stage of users really need a smart phone, I think, we can gain some competitive advantage. In our opinion, the Indian market for the company, there are still plenty of room for growth, so we will try to seize these opportunities. “(compile/Jin Quan)
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