It’s personal opinion, but I find New Yorkers to be among the most argumentative of our species, perhaps because it takes little effort to find something to argue about, worthy or otherwise. Let’s take Apple. Apple has trouble selling iPhones to poor people.
I. Wonder. Why.
Have you ever read a story about Lexus or Mercedes or Tesla having difficulty selling their expensive cars to the poor in Africa, India, or Asia? No. Why not? Why bother to argue such an issue? Isn’t it obvious. Those are premium brands so why target to those who do not have the wherewithal to purchase premium products?
Apple sells premium products, yes, but depending upon where you live and how much disposable income you have, they– Mac, iPad, iPhone, accessories– are considered affordable luxuries. So, why can’t Apple sell iPhones in India?
Check out the stupidity in The Wall Street Journal:
‘It’s Been a Rout’: Apple’s iPhones Fall Flat in World’s Largest Untapped Market
Uh, if it’s an untapped market, then nobody else is selling anything, either. That’s kinda sorta mostly is what untapped means, right?
More stupidity to follow:
Amit Rajput, who runs a counter selling iPhones in a busy electronics shop here, cuts a lonely figure. He is lucky to sell one device a day, compared with the 10 or more smartphones his colleagues at desks for Samsung Electronics Co., Nokia Corp. and China’s Oppo sell daily in the same store.
Now, with Apple, we’re talking iPhones only. iPhones are the most expensive of the major smartphone brands. Of the Samsung, Nokia, and Oppo models that sell ten times more than iPhone, which of them are competing against the premium iPhone brand?
Zero. None. Nada. Zilch.
There’s a false equivalency going on in the argument. One of those products is not the same. From there on the WSJ writers engage in typical journalism shenanigans where they throw shade on Apple but without any facts or factual sources.
The number of iPhones shipped in India has fallen 40% so far this year compared with 2017, and Apple’s market share there has dropped to about 1% from about 2%
Those are not Apple’s numbers. Those are guesstimates but let’s walk with them for awhile.
With 1.3 billion consumers, the country is the world’s biggest untapped tech market.
Again, with the untapped. If it’s an untapped market, then nobody is doing well in India, right?
[Apple] posted revenues of $1.8 billion in India this fiscal year. That is less than half of what executives had once hoped to capture, said a person familiar with its targets.
Italics are mine. Uh huh. As if someone at Apple would divulge such information to the WSJ. What is not compared anywhere in the article is how much revenue and profit Samsung, Nokia, Oppo, or other manufacturers made in India over the same period— and then compared to Apple.
Assume, or, if you will, guesstimate, that the average selling price of an iPhone in India is $500, that means Apple managed to sell 3.6-million iPhones in the past year. That’s about the same number as Google sold Pixel smartphones in the past year– worldwide.
At the heart of the issue is Apple’s reluctance to change its traditional business model for selling the iPhone. Rather than make a range of handsets, it has prioritized a limited number of coveted products, sold at high prices
And this strategy differs from other Apple products and other markets on planet earth exactly how? Critics and analysts and journalists do not seem to understand marketing, technology, or business models. Apple sells premium products. To buy a premium product you need to be able to afford it. Apple accounts for more than 60-percent of the entire planet’s smartphone revenue each year, and over 80-percent of the planet’s smartphone profits each year. That didn’t happen by selling $200 iPhones.
What is the average selling price of a smartphone in India? Let’s say it’s $100. No, let’s go to $200. That means Apple’s share of revenue and profits in India could be three to five times iPhone’s marketshare (a meaningless metric too often touted by ignorant writers). Does Apple want to sell more iPhones in India and other countries that are supposedly untapped? Sure. Of course. $100 iPhones will sell in greater quantities but that’s not how Apple operates.
Why don’t so-called writers and analysts understand that? Maybe The Wall Street Journal has adopted the Forbes Magazine business model.
Forbes.com uses a “contributor model” in which a wide network of “contributors” writes and publishes articles directly on the website. Contributors are paid based on traffic to their respective Forbes.com pages; the site has received contributions from over 2,500 individuals, and some contributors have earned over US$100,000
That explains plenty, amirite?