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 17 Pro Dual Tone Horizontal 1

iPhone 17 Pro Launching This Year With These 8 New Features

Tuesday January 28, 2025 11:48 am PST by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. iPhone 17 Pro concept based on rumors Below, we recap key changes rumored for the iPhone 17 Pro models as of January 2025: More aluminum: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models ...
airpods 4 blue

Apple Finally Explains How to Install New Firmware on Your AirPods

Monday January 27, 2025 11:17 am PST by
Apple regularly releases new firmware for the AirPods, AirPods Pro, and AirPods Max, but the company has historically provided limited information on how to initiate an update. That changed today, and Apple updated its AirPods firmware support page with more specific instructions. Prior to today, here's what Apple said on the subject: Firmware updates are delivered automatically while your...
tvOS 18 Thumb 3

Apple Releases tvOS 18.3

Monday January 27, 2025 10:00 am PST by
Apple today released tvOS 18.3, the newest version of the tvOS 18 operating system that came out in September. tvOS 18.3 comes more than a month after Apple released tvOS 18.2, and it is available for the Apple TV 4K and the Apple TV HD models. tvOS 18.3 can be downloaded using the Settings app on the ‌Apple TV‌. Open up Settings and go to System > Software Update to get the new software....
M6 MacBook Pro Feature 1

5 Reasons to Wait for Next Year's MacBook Pro

Monday January 27, 2025 4:25 am PST by
Apple in October 2024 overhauled its 14-inch and 16-inch MacBook Pro models, adding M4, M4 Pro, and M4 Max chips, Thunderbolt 5 ports on higher-end models, display changes, and more. That's quite a lot of updates in one go, but if you think this means a further major refresh for the MacBook Pro is now several years away, think again. Bloomberg's Mark Gurman has said he expects only a small...
ipad january sale

Amazon's New iPad Sale Has Up to $300 Off M4 iPad Pro, M2 iPad Air, and iPad Mini 7

Tuesday January 28, 2025 7:32 am PST by
Today we're tracking a few iPad discounts on Amazon, including the new iPad mini 7, M2 iPad Air, and M4 iPad Pro. These deals include multiple all-time low prices on Apple's tablets, matching the prices we tracked over the holiday season in many cases. Note: MacRumors is an affiliate partner with Amazon. When you click a link and make a purchase, we may receive a small payment, which helps us...
iPhone 17 Air Size Feature

iPhone 17 Air Design, Specs, and More: All the Rumors So Far

Wednesday January 29, 2025 4:00 am PST by
This year, Apple is expected to discontinue the iPhone "Plus" device in its iPhone 17 lineup to make way for an iPhone "Air," so-called because of its thin profile. Below is a compilation of every rumor and leak we have registered from reputable sources thus far about Apple's new entry in its flagship smartphone lineup. iPhone 17 "Air"? About the Name There has been some uncertainty...
iPhone SE 4 Thumb 1

iPhone SE 4 to Have Notch Instead of Dynamic Island

Tuesday January 28, 2025 1:49 pm PST by
The upcoming iPhone SE 4 will feature a notch instead of the Dynamic Island, respected display analyst Ross Young said today. The device will have a "notch like the iPhone 14," according to Young, which contradicts a recent leak that depicted a Dynamic Island. Earlier this month, leaker Evan Blass shared images said to feature the iPhone SE 4's design, but those images featured an iPhone...

Top Rated Comments

rocknrollme Avatar
111 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
111 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)
ka-spot Avatar
111 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
111 months ago
That's what usually happens when you get lazy!
Score: 17 Votes (Like | Disagree)
nope7308 Avatar
111 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
111 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)