Apple CEO Tim Cook Attributes India's Performance to Strong iPhone Sales

Apple's CEO Tim Cook has identified India's remarkable performance as primarily driven by strong iPhone sales, as the country's smartphone market navigates through a 10% YoY decline.

The International Data Corporation's (IDC) report sheds light on shifting dynamics in Average Selling Price and the growing presence of 5G smartphones in the market. Despite challenges, Apple stands out with substantial growth and an increase in average selling price.

Q2 2023 Performance and Shifting Dynamics in ASP

During the second quarter of 2023, India's smartphone market demonstrated a growth of 10% compared to the previous quarter, although it witnessed a 3% YoY decline, shipping a total of 34 million units.

The decline was attributed to strategic actions by vendors and channels, focusing on inventory clearance through discounts, special schemes, and price drops ahead of the upcoming festive season.

Changing Dynamics in Average Selling Price

The smartphone market has witnessed changing dynamics in the Average Selling Price (ASP). While experiencing consecutive quarters of growth, the ASP of smartphones declined by 8% QoQ but exhibited a significant 13% YoY growth, reaching US$241 in Q2.

The market share of smartphones in the sub-US$200 segment dipped from 70% to 65% compared to the previous year, marking an 11% YoY decrease. Meanwhile, the mid-range segment (US$200<US$400) remained steady with a 22% share, while the mid-to-high-end segment (US$400<US$600) demonstrated a robust 34% YoY growth, accounting for a 5% share.

The premium segment (US$600+) experienced the most significant growth, with a 75% YoY increase and a 9% share.

Rise of 5G Smartphones and Leading Brands

The second quarter of 2023 saw the shipment of 17 million 5G smartphones, boasting an average selling price of US$366, reflecting a 3% YoY decrease. In the 5G segment, Samsung, vivo, and OnePlus emerged as the leading brands, collectively holding a substantial 54% share. Notably, Apple's iPhone 13 and OnePlus' Nord CE3 Lite were the top shipped 5G models during this period.

Channel and Brand Performance

The distribution channels also showcased intriguing trends. Online channel shipments faced a 15% YoY decline, while the offline channel witnessed an 11% growth, capturing 54% of the share. The online-heavy players, such as Xiaomi and realme, contributed to the decrease in online channel shipments.

Apple's Remarkable Growth and OnePlus' Performance

Among the top ten smartphone brands, Apple achieved a remarkable 61% YoY growth, boasting the highest average selling price of US$929. CEO Tim Cook acknowledged India's contribution to the company's strong revenue performance in emerging markets.

Apple experienced "strong double-digit" growth in India. OnePlus also registered a healthy growth rate of 61%, although its average selling price dropped by 14% YoY to US$346. The POCO brand witnessed impressive growth, attributed to its affordable C series models.

Conclusion:

India's smartphone market may have faced a YoY decline, but Apple's CEO Tim Cook recognizes the brand's resilience, particularly its strong iPhone sales, as a driving force behind the country's performance.

Amidst changing dynamics in Average Selling Price and the rise of 5G smartphones, Apple's growth and premium positioning stand out. The market's evolving landscape continues to present challenges and opportunities for smartphone manufacturers.