- According to the analysis it was found that iPhone shipments into India dipped to 220,000 units in the January-March quarter.
- Apple Inc. is losing its end on the iPhone sale in India at its lowest since 2015, reported a 42% drop in the January-March quarter.
It’s been a wild few days for Apple, as the company’s famed chief design officer Jony Ive announced his resignation. With the rumors of iPhone 11 around the market, Apple Inc. is losing its end on the iPhone sale in India at its lowest since 2015, reported a 42% drop in the January-March quarter.
Drop in Supply
According to the analysis it was found that iPhone shipments into India dipped to 220,000 units in the January-March quarter. However, the full year estimate is 1.5 million to 1.6 million, a 10-17% drop from 2018 and as much as 53% lower than the peak shipment of 3.2 million in 2017.
The good bells ring, in April when shipments rose to as much as 200,000 units fuelled by price cuts and discounts on various devices. Though it was short-lived as demand fizzled out in May and June with the advent of OnePlus 7 Pro in the premium segment of the smartphone.
Neil Shah, Research Director at Counterpoint Technology Market research quoted “Apple had a disappointing run in 2018 and the aftermath for 2019 looks weaker, with shipments having fallen further compared to last year, with the exception of April, thanks to price correction that month.”
Apple started manufacturing its phones through Taiwanese electronics manufacturer Foxconn Technology Group, with an initial commercial capacity of 250000 units monthly. About 70-80 % share of capacity is likely to be exported from India, to diversify the production outside China.
Neil Shah quoted “Local manufacturing will be the key for Apple to register positive growth this year to help reduce the iPhone prices, or else the result end towards 1.5-1.6 million this year, which will be lowest in the last 4-5 years”.
Apple may be preparing to treat India more like a production hub than a potential market, with plans to scale up local manufacturing. Suppliers like Foxconn, Pegatron and Wistron are asked to move 15-30% of their production outside of China to avoid higher tariffs on exports to the US.
Pankaj Mohindroo, chairman of the Indian Cellular and Electronics Association quoted
“Apple already has some of its global partner manufacturers in India and with the right environment and possibly incentives, can create a global hub for making in India and a deep ecosystem for manufacturers.”
Apple should scaled-up local manufacturing in India to meet sourcing norms to open its own stores.
With the numbers showing bad as compared to last year. Apple should face on local manufacturing in India to create its hub and stop this loss in product shipment.