Apple's initiative to partner with an online firm, Flipkart, to sell its latest iPhones during the festive season had a major impact on sales. The channel contributed to around 50% of iPhone sales in October, partly because it helped Apple to penetrate cities and towns where there are no Apple outlets and which it has traditionally found difficult to reach. Apple shipped around 2.6 lakh units of iPhone 7 and iPhone 7 Plus in October, said Cybermedia, a technology research firm.
Most of the online sales happened with exchange offers. About 70% of these were Android phones being exchanged for iPhone 7s. Only 30% were upgrades from previous-generation iPhones.
The iPhone 7, priced at more than Rs 60,000, helped Apple gain market share in the above-Rs 20,000 premium handset category in October, according to several industry sources who did not want to be named. During the first nine months of 2016, Apple had around 20% market share in the above-Rs 20,000 handsets, according to Cybermedia. But in October, this is said to have been significantly higher.
"There is a void due to problems being faced by Samsung Note 7 in that space. The upcoming months should be better for Apple," said Faisal Kawoosa, principal analyst (telecom), Cybermedia. Globally, too, Apple is benefiting from the Samsung Galaxy Note 7 battery explosions.
Apple sells iPhones in India through distributors Redington Ingram and Rashi Peripherals. Offline and online sellers have traditionally bought from these distributors and then sold to consumers. For the first time this festive season, Apple directly dealt with a major online retailer.
A lot of emerging brands sell mainly through online channels because of their reach, and because this requires limited investments. Kawoosa, however, warned that online sales in smaller cities could backfire on a brand like Apple because its service networks in those cities and towns are not well established.
Around 40% of India's smartphones are sold through online channels. About 120 million smartphones are sold in the country every year and Apple's share is less than 2%. Apple CEO Tim Cook recently told investors and analysts that India will emerge as one of the big markets for the company.
Most of the online sales happened with exchange offers. About 70% of these were Android phones being exchanged for iPhone 7s. Only 30% were upgrades from previous-generation iPhones.
The iPhone 7, priced at more than Rs 60,000, helped Apple gain market share in the above-Rs 20,000 premium handset category in October, according to several industry sources who did not want to be named. During the first nine months of 2016, Apple had around 20% market share in the above-Rs 20,000 handsets, according to Cybermedia. But in October, this is said to have been significantly higher.
"There is a void due to problems being faced by Samsung Note 7 in that space. The upcoming months should be better for Apple," said Faisal Kawoosa, principal analyst (telecom), Cybermedia. Globally, too, Apple is benefiting from the Samsung Galaxy Note 7 battery explosions.
Apple sells iPhones in India through distributors Redington Ingram and Rashi Peripherals. Offline and online sellers have traditionally bought from these distributors and then sold to consumers. For the first time this festive season, Apple directly dealt with a major online retailer.
A lot of emerging brands sell mainly through online channels because of their reach, and because this requires limited investments. Kawoosa, however, warned that online sales in smaller cities could backfire on a brand like Apple because its service networks in those cities and towns are not well established.
Around 40% of India's smartphones are sold through online channels. About 120 million smartphones are sold in the country every year and Apple's share is less than 2%. Apple CEO Tim Cook recently told investors and analysts that India will emerge as one of the big markets for the company.
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