Despite a sharp fall in demand for smartphones, the sale of Apple iPhones have gone up significantly. Due to a rise in its market share, experts are claiming that iPhone sales indicate inequality in Indian economy. This is the reason the company is eyeing India for its expanding market.
According to the data released by International Data Corporation (IDC), smartphone shipments have declined by 16% YoY – to 31 millions in the first quarter of FY2023. This is the lowest figure Indian market has seen in four years. This implies a negative impact of the growing standard of living costs and speculation about the worldwide recession.
The glaring contrast in the situation is presented by the multinational technology company Apple, which reported $24 billion profit on sales revenue of $94.8 billion in quarter 1. This implies that the middle class is witnessing an increase in its annual income and is shifting its demand towards high, new budget smartphones requiring high maintenance.
On the other hand, low budget smartphones have been facing the heat as the savings of lower middle class and the poor have been affected by the sluggish economic growth.
They are now putting a halt to the purchase of such luxury items. This slowdown is due to a K-shaped recovery that the Indian economy is currently going through – resulting in 4.1% growth rate of GDP in the previous quarter.
The numbers presented by iPhone sales indicate inequality in Indian economy. While one section has cut down purchase of goods like smartphones, the other section is enjoying all the benefits achieved through economic growth by consuming the best products in the market. As a result, iPhone sales surpass its competitors in India.
However, the entire data does not reveal a bleak future. Though online sales have gone down, inexpensive smartphone companies like Samsung, Vivo and Oppo have witnessed high offline demand due to new features, latest models and eye-catching advertisements.
In the latter quarters, these smartphones can regain their usual revenue numbers by introducing lucrative offers and discounts, especially on the occasions of Cricket World Cup and General Assembly Elections in 2024.
Source: IDC Report