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May 6, 2017

How Apple is hitting the markets of Asian countries: India vs. China

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According to Fred Wilson, “Android will be stronger in the developing world than it is in the developing world”. But when it comes to Apple in developing countries, Apple is reckoned paradoxically with mixed record as far as sustainability is concerned which has come into existence by a couple of free thinking hippies. As per Steve Jobs, Apple has established a status in order to importance that Apple was always the impact of the product in the lives of consumers. According to CNBC, Apple has reported the declining revenue in another quarter in China but Tim Cook seems to be quite enthusiastic about the exponential increase of opportunities considering the world’s largest smartphone market. According to few analysts, where they suggested that upcoming iPhone is expected to bring the same growth again.  
Considering India, Apple’s CEO Tim Cook has verbalised resonant optimism for growth prospects keeping in mind the underpenetrated brand in India. India to be the world’s third-largest smartphone market regarded it to be optimistic with its large, young and tech-savvy population with fast growing economy as well as 4G network infrastructure by Cook while declaring second quarter results.
Comparison
China: According to CNBC, on quarterly basis, China’s revenue fell by 34 percent where the company contended to sustain the momentum, often witnessed a transient variation in the first half of its fiscal year when a full force of iPhone is felt. Considering the fiscal first quarter of 2016 and 2017, sales had shown somewhat up as far as quarter-on-quarter basis is concerned. But ever since from March 2016, Apple has experienced year-on-year declines in China revenue. But the fundamental problem for Apple is the challenge it faces from Chinese upstarts such as Vivo and Oppo. The devices offered by these companies are high-spec devices at an affordable prices. It follows the chain of physical stores across the country. At one place Apple’s market share has declined from 13.6 percent to 9.6 percent in 2016, analogously Oppo managed to grab the market share by 122.2 percent YOY growth.
Although at one place Apple is pessimistic that it won’t be experiencing the same growth which it demonstrated when iPhone 6 was unveiled due to its large screen size, but found a sense of optimism while viewing double-digit revenue growth from Mac Greater China, subsequently upsurge in revenue by 27 percent from last year in Mainland China. Mac has finally penetrated the market in China as initially it was being ignored.
India: With the upsurge investment in 4G infrastructure which although proved to be quite beneficial to establish local presence which manifested a positive indication. According to Phil Schiller, Senior VP of Worldwide marketing, Apple is bullish considering Apple’s future as far as Indian market is concerned. Apple is increasing its investment in India where it  is reported to start manufacturing within the nation. While China’s revenue from this quarter has declined, on contrary, Apple saw double digit growth in India.
Apple Watch: Although it launched, post of Steve Jobs’ era where Apple launched Apple Watch Series 2 with iPhone 7 last year. Apple is still leader in the market of smartwatches but the revenue could not match the expectations.  As far as Airpods come into the existence, the demand for the product is still outdoing the supply but numbers are yet to be shared, as per Indian express.
Future sights
China: Although iPhone 8 is the most optimistic reason. As per the rumours there will be edge-to-edge design that will certainly stand out of the crowd. Like any other Smartphone, it will even run WeChat. It will be wrong somehow to consider Apple to be dead. Since iPhone is still status-conferring, it’s possible that the numbers will turn positive this time. In other parts of the World, iPhone franchise is still valuable and established its monopoly but in China, the intense competition with Chinese upstarts like Vivo and Oppo, it may manage to be a de facto monopolist or in another words a simple smartphone vendor. It is expected that China will be trading on status and luxury since iPhone will manage to make up 90 percent of the revenue in China as per analysts Cowen and Co.
India:
Apple’s Chief Executive officer is still bullish on sales growth as far as South Asian Nation is concerned after the replacement of its largest denomination bank notes. It is expecting to strengthen revenue as the sales almost stagnant in China. India is sooner going to overtake U.S, the world’s second- largest smartphone market after China. According to Counterpoint Research, Smartphone shipment already grew by 18% while a sharp contrast of 3% at a global level.
Analogously, it is nearing a deal to manufacture its products in India as per Wall Street Journals. As per a recent presentation after unveiling the results of Second quarter made by Apple where CFO Luca Maestri has stated that double-digit markets in most of the overseas markets which includes Germany, Canada, Mexico, Australia, Netherland, Turkey and Russia. By venting the similar strategies in India, Apple is expecting to replicate the same level of success even in the other developing countries.
Wrapping up:
Both the countries have shown good results but India has proved to be a more promising market rather than China which is already invaded by Chinese Upstarts like Oppo and Vivo. Hence these results are passively impacting the demand and supply of iOS application development companies in India as well as on global level. Fluper, one of the top notch iOS application development companies is enthusiastic to find the good response on quarterly revenue and dedicating enough to create the most innovative iOS mobile app.
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    About Author


    Vinay Kumar is the brilliant mind behind the technology at Fluper, serving as the Chief Technology Officer. With a wealth of experience in software development and a passion for leveraging the latest technologies, Vinay drives the technical vision of Fluper's projects. His expertise in creating scalable and robust solutions ensures Fluper delivers best-in-class products exceeding client expectations.

    Vinay Kumar

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