iPhone-maker Apple has failed to meet its target of selling 10 million iPhones in India by 2016-17, a new report from Bank of America Merrill Lynch Global shows.
"Historically, India handset market has been a very small market for Apple (iPhones accounting for 1% of sales globally) given the price sensitive nature of the market. Approx. 70-75% of smartphones sold in India are at the sub-$150 level, while just 7% are in the "high-end" bracket of $300+," the report explains.
"Industry participants noted that the actual selling price (ASP) of an Apple iPhone in India is $612, much higher than Samsung's ASP of $173 and Micromax's $86. Indeed, Apple's sales in India are around 2 million, way short of its target of selling 10 million mobile phones in India by 2016-17," it further explains.
However, the report also goes on to say that Apple has stated that it considers India to be a big longer term opportunity for growth. Furthermore, improving 4G networks, declining data tariffs and free service by new entrant Jio is enticing a lot of consumers to upgrade to 4G smartphone will also work in Apple's favour, the BofA report claims.
Apple is already preparing its manufacturing facility in India and is reportedly expected to start trial assembly in Peenya near Bengaluru with Taiwanese contract manufacturer Wistron.
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