Apple has sold its flagship product iPhone traditionally through Wireless Operators. However, with just 5% of Indians opting for Post-Paid mobile connections, Apple’s strategy won’t work in this Geography. Apple is now also selling through distribution channel partners like Ingram Micro / Redington. To make them affordable, iPhones are offered on interest-free installments (6-12 months) as Apple has tied up with Retailers and Banking Channels.
Apple has focused on Advertising Campaign on the Web as well as newspapers. Apple has reimbursed the cost of a full-page newspaper advertisement incurred by distributor partner Redington made possible by higher margin on iPhones. The company now has over 150 employees in India, up from only around 30 people 2-3 quarters back to promote sales. A customized iTunes site is also helping Indian buyers.
Apple has around 1.5% smartphone share in India as opposed to its global share of 18% and 10-11% share in China. Since the launch of iPhone 5 and recent changes in Apple’s strategy in India, there have been a number of data points which suggest that iPhone volumes in India have seen 3-4x increase in calendar Q412 compared to the previous quarter. According to IDC, iPhone sales have seen an increase of 3-4x over the last 3 months in India.