When I traverse the interwebs I hope to find insightful analysis regarding technology sectors that involved Apple. It’s something of a hobby of mine, but even I can figure out why Apple struggles to sell iPhones in certain markets.
Where are the world’s hottest markets for tech goods? It’s not the U.S. Not Europe. Not any region where smartphone sales or PCs or tablets or whatever has reached saturation. So, think India, Southeast Asia, Africa, etc. Apple’s iPhone does not do so well in those areas.
Apple is still struggling to sell iPhones in the world’s hottest markets
Uh huh. Just like forever. Nothing to see here. Move along.
What you won’t read in Iyengar’s thinly veiled excuse for insightful analysis is, well, insightful analysis. For example, “Why?” Why does Apple struggle to sell iPhones in the world’s hottest markets (figurative markets, not literal markets)? All over the world Apple seems to struggle to push the iPhone into markets where competitors thrive.
2-percent in India. Maybe 10-percent in China. 5-percent and 8-percent, respectively, in Vietnam and Thailand. What’s going on? Why can’t Apple compete against the likes of China’s best– Oppo, Vivo, Xiaomi, Huawei?
Wait. I see. It just struck me. How’s this for some insightful analysis?
First, we’re still talking marketshare and positioning Apple as if the company gave any consideration to marketshare at all. Of all the major metrics to determine a company’s health, marketshare is on the bottom; easily topped by, oh, let’s say– profits, revenue, etc.
Second, we’re also still talking about selling a premium brand– and that means expensive– into nations whose populace has just begun to embrace the smartphone as their only device for computing and communication. Allow me to wager that most smartphone owners in the aforementioned countries where Apple struggles to sell iPhones cannot afford iPhones. Maybe that explains why Lexus and Mercedes do not have the same marketshare as Maruti, which has seven of the Top 10 cars sold in India.
Lexus and Mercedes are struggling, no? What’s wrong with them? Meh. Buggatti hasn’t even cracked the Top 20 yet. Meh.
There should be no doubt that Apple wants to sell more iPhones in every country, but somewhere along the line critics need to do the basic math. What’s the average selling price of a smartphone in India? $157. Last year. I checked. What about iPhone? $724.
According to the guesstimators at Strategy Analytics, Apple keeps about 85-percent of all the world’s smartphone profits and about 50-percent of all smartphone revenue. I checked.
If iPhones were free Apple would be accused of failing to keep up with demand.