According to a recent analysis by IDC’s global market firm, Apple’s company-owned e-commerce store in India has started reaping benefits. The e-commerce store in India of the Cupertino giant is responsible for around 4% of its total sales volume as of the June quarter (2Q21).
This e-commerce store was launched by the iPhone maker in India over a year ago amid apprehensions if it will gain a foothold in the hypercompetitive Indian e-commerce market. As we know, the Indian e-commerce business is dominated by fierce competitors, and Apple had to compete with the discounts offered by the heavyweights Flipkart and Amazon on iPhones and iPads.
IDC expects that, in terms of revenue, the sales of the company’s devices could be higher as it estimates the average selling price (ASP) of Apple in India is higher in its online store across all channels.
Apple’s iPhone ASP in India in the same quarter was $1,100. However, two industry executives told the publication that the ASP could be a notch higher in the range of $1,300-$1,400.
“Consumers are not just buying the iPhones and iPods, but also expensive Mac computers which are sold for a couple of lakhs from the online store. It is no mean feat since it’s like buying a Mercedes online.”
According to reports, the success of Apple with the online business in India is attributed to factors like acceleration in online shopping amidst the pandemic; discount offers for students, financing options, and exchange schemes.
In addition, in its online store, Apple provides its shoppers with an option to engrave personal messages on some products in English and even in seven other different languages. This makes India the only market where this feature is offered to the company’s consumers.
The report further states that Apple’s share of made-in-India iPhones has increased from 17% in 2018 to 76% in 2021, and even its share of smartphone exports from the country now stands at 5% from zero a couple of years back.
Pegatron, which is Apple’s second-largest manufacturer after Foxconn (HonHai), has registered its India subsidiary last year and invested around $150 million, approximately about Rs 1,100 crore, for its India operations.
All in all, Apple is planning a complete dominance in the Indian market.