Apple Continues to Struggle in India as iPhone Sales Drop 35 Percent in 2016

Despite India's overall healthy growth in the smartphone market -- currently sitting as the third largest behind China and the United States -- Apple is having a tough time gaining ground in the country. According to a new report from Strategy Analytics, Apple saw a drastic percentage dip in iPhone users from 2015 to 2016, with 35 percent fewer iPhone devices sold this year. Earlier in May, Apple CEO Tim Cook admitted iPhones are too expensive in India, potentially harming the company's sales figures as it tries to grow.

In its new report, the market research firm said that Apple sold just 800,000 handsets in Q2 2016, while in the same year-ago quarter the company sold 1.2 million units. These deflating sales numbers rippled into Apple's operating system marketshare in India, essentially getting halved down from 4.5 percent in Q2 2015 to 2.4 percent in Q2 2016. Director of Strategy Analytics, Woody Oh, pointed out a few ways Apple might go about course correcting its current struggles in the country, including the ongoing saga of boosting its retail presence in India.

iPhone-6s-main

“Apple iOS fell 35 percent annually and shipped 0.8 million smartphones in India in Q2 2016. Apple’s smartphone marketshare has halved from 4 percent to just 2 percent in India during the past year. Apple iOS will need to reduce iPhone pricing to cheaper levels, attract more operator subsidies and enlarge its retail presence through Apple stores or online channels if it wants to regrow significantly in the future.”

Apple Stores aren't as ubiquitous in India as they are in other parts of the world thanks to the country's rules on foreign direct investments, which required 30 percent of goods sold by a foreign company to be manufactured or produced within India. Thankfully, after a ruling in June cleared the way for companies to circumvent that law, Indian Prime Minister Narendra Modi set a precedent by granting Apple a three-year extension on the strict local-sourcing rule, due to its single-brand retail company status selling "cutting-edge technology." Companies similar to Apple are expected to get similar treatment.

While the relaxation of these rules should help Apple moving forward, it doesn't change the fact that Android remained the dominant force in India this year. In total, 29.8 million Android smartphones shipped within the country in Q2 2016, growing from 23.2 million in the same quarter last year. Similarly, Google's Android operating system remained the dominant force in the Indian mobile market with a record 97 percent hold for the quarter, increasing from 90 percent a year ago.

Apple's retail future in the country might be turning around, but the company is still hitting smaller roadblocks on its route to increasing sales figures in India. In May, Commerce and Industry Minister Nirmala Sitharaman ruled "not in favor" of a proposal laid out by Apple to sell used iPhones in the country. Thanks to Apple's repeated growth frustrations, Strategy Analytics said that Android's domination of the Indian smartphone market "looks unbeatable right now, due to its deep portfolio of hardware partners, extensive distribution channels, and a wide range of low-cost apps like Gmail."

Tag: India

Popular Stories

iphone 16 apple intelligence

Apple Aiming to Release 'Breakthrough' New iPhone Accessory

Wednesday February 18, 2026 12:43 pm PST by
Apple is looking for a "breakthrough" with its push into wearable AI devices, including an "AirTag-sized pendant," according to Bloomberg's Mark Gurman. In a report this week, he said the pendant is reminiscent of the failed Humane AI Pin, but it would be an iPhone accessory rather than a standalone product. The pendant would feature an "always-on" camera and a microphone for Siri voice...
Apple Announces Special Event in New York Feature

Apple Announces Special Event in New York, London, and Shanghai on March 4

Monday February 16, 2026 6:05 am PST by
Apple today announced a "special Apple Experience" in New York, London, and Shanghai, taking place on March 4, 2026 at 9:00am ET. Apple invited select members of the media to the event in three major cities around the world. It is simply described as a "special Apple Experience," and there is no further information about what it may entail. The invitation features a 3D Apple logo design...
iphone 17 pro green

iPhone 17 Pro Max Curiously Becomes Most Traded-In Smartphone

Wednesday February 18, 2026 9:13 am PST by
New trade-in data indicates that Apple's iPhone 17 Pro Max has rapidly become the single most traded-in smartphone. According to a new report from SellCell, Apple's latest flagship iPhone has quickly risen to the top of the independent trade-in market, accounting for 11.5% of all devices appearing in the top-20 trade-in rankings just months after release. The analysis is based on SellCell...
CarPlay Liquid Glass Dark

iOS 26.4's New CarPlay Video Feature Shown in Action

Wednesday February 18, 2026 9:29 am PST by
Back at WWDC 2025, Apple revealed that it was planning to allow CarPlay users to watch video via AirPlay in their vehicles while they are not driving, and the first beta of iOS 26.4 suggests the feature may be nearing availability. There are several new references to CarPlay video streaming functionality within the iOS 26.4 beta's source code. The feature is not yet visible to users, but...
Multicolored Low Cost A18 Pro MacBook Feature

Low-Cost MacBook Expected on March 4 in These Colors

Wednesday February 18, 2026 5:42 am PST by
Apple will announce its rumored low-cost MacBook at its event on March 4, with the device coming in a selection of bold color options, according to a known leaker. Earlier this week, Apple announced a "special Apple Experience" for the media in New York, London, and Shanghai, taking place on March 4, 2026 at 9:00am ET. Posting on Weibo, the leaker known as "Instant Digital" said that the...

Top Rated Comments

125 months ago
That's the problem when selling a thousand dollar phone in a country where most people struggle to eat everyday.
Score: 29 Votes (Like | Disagree)
Kobayagi Avatar
125 months ago
"Earlier in May, Apple CEO Tim Cook ('https://www.macrumors.com/roundup/tim-cook/') admitted iPhones are too expensive in India ('https://www.macrumors.com/2016/05/24/iphones-too-expensive-india-apple-tim-cook/'), potentially harming the company's sales figures as it tries to grow."

Does this mean they're a bargain in the rest of the world? I think not. Just wait till they add the "Pro" name and make them even more expensive. ;)
Score: 27 Votes (Like | Disagree)
125 months ago
don't know about india, but apple obviously can't give us something new. I just can't wait to skip iPhone 7...
Score: 19 Votes (Like | Disagree)
BvizioN Avatar
125 months ago
That's what usually happens when you get lazy!
Score: 17 Votes (Like | Disagree)
nope7308 Avatar
125 months ago
Good.

Apple needs to be knocked down a peg or two. Resting on their laurels a little too much, if you ask me (and even if you don't).
Score: 17 Votes (Like | Disagree)
Rogifan Avatar
125 months ago
That's what usually happens when you get lazy!
India is incredibly price conscious; Apple doesn't sell cheap phones. No surprise here.
Score: 15 Votes (Like | Disagree)