Apple Inc. (NASDAQ:AAPL) has plans to leverage more sales in India. Research data indicates that the company occupies only 2% of the Indian smartphone market. The country is also taking the same path that China took with its economic boom plus its massive population. Apple’s market in China is 15 times bigger than in India whose population is quite massive. The country has approximately 1.3 billion people and Apple plans to tap into this population so that it can boost its market base as well as its revenue.
The company is working towards opening stores in India.
According to Bloomberg, the firm has a pending approval for its first store in the country. India is one of the fastest growing economies in the world, and its middle class is rapidly expanding. This means Indians have more purchasing power and are willing to spend on premium devices.
According to data from a research firm called Counterpoint, 100 million smartphones were shipped into the country in 2015. Another key focal point for Apple is that it wants to make its new technology available to Indians. The research firm also indicated that most of the smartphones shipped into the country do not feature the current technology and have lower prices compared to Apple’s devices.
Apple’s involvement in the Indian market will particularly focus on bringing LTE enabled phones into the country. Despite the large population, only a small percentage can afford to buy iPhones. However, the company believes that the market can offer significant impacts regarding profits generated from the country. Tarun Pathak, an Analyst from Counterpoint, stated that Apple’s growth in India will be fueled by new users rather than the already existing customers. In the western markets, the company’s sales are mostly fueled by users upgrading from their old iPhones to the new versions.
The company believes that the popularity of its devices in other parts of the world will attract more users in the Indian market.