No shake-up of Indian market as iPhone 6 price too high, say analysts

With Apple entering the big-screen club, though a little late, the company is expected to take...

Bangalore | Published: September 11, 2014 5:11 am
Apple will make the new phones available in India from October 17. (Reuters) Apple will make the new phones available in India from October 17. (Reuters)

With Apple entering the big-screen club, though a little late, the company is expected to take on Android manufacturers in a big way. Analysts FE spoke to, however, feel the uptick in sales will be minimal in India as both iPhone 6 (4.7-inch screen) and iPhone 6 Plus (5.5-inch screen) are priced much above the bigger Android phones.

Apple will make the new phones available in India from October 17. The devices will hit US stores on September 19 and Apple enthusiasts in India need to wait less than a month, unlike the long wait in case of previous editions.

“There could be pent-up demand for larger iPhones and this launch will address that demand. All the new devices will see some excitement and sales will go up too. But that will not mean Apple will gain market share,” said Anshul Gupta, principal analyst at Gartner.

Analysts believe consumers in Asia have a preference for larger screens, and they were forced to go for Android so far. Gupta says Apple’s market share is too small to make any impact in the Indian smartphone market. “Handsets priced above

Rs 50,000 will not see much traction in the country,” he said.

According to latest market estimates from agencies like IDC and Cybermedia, the consensus is that Apple holds less than 1% of the shipments in India. Analysts feel incremental sales will not be enough for Apple to gain any reasonable market share.

Shiv Putcha, associate director, mobility at IDC, told FE the bulk of iPhone 6 sales will come in the form of upgrades by existing iPhone users. “Apple has got a healthy upgrade cycle. Also there will be a spike in sales as the price of iPhone 5 will come down and lot of people might buy it,” he said.

fe Bureau | The Financial Express

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