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In Q2-20, Apple Dominated the Premium Smartphone Segment in India as they plan to be a bigger Player in that market in 2021

1 Cover Apple store in india


A new report published by International Data Corporation (IDC) today shows us that for Q2-20, all of the smartphone OEM leaders experienced bloodbath-declines with Oppo at -51% and market leader Xiaomi at -48% for their respective year-on-year growth as the country was in COVID-19 lockdown mode. 


IDC reports that vendors faced major supply chain disruptions at the beginning of the quarter, and the shortage continued into the rest of the quarter as factories operated at partial capacity even after the lockdown was lifted. Components and parts remained at the ports waiting to be cleared, especially for China-based vendors. By June, sales increased mainly due to the pent-up demand from the lockdown period. However, purchases were mainly driven by availability rather than by choice.


2 x india smartphone stats Q2-20 IDC CHART(Click on image to Enlarge)


IDC further reported that shipments in the premium (US$500+) segment declined by (-35.4%) YoY in 2Q-20; Apple continued to dominate there with a market share of 48.8%, followed by Samsung and OnePlus.


The iPhone 11 and iPhone XR together accounted for 28% shipments in this segment with Xiaomi's Mi 10 and the OnePlus 8 series as new entrants in 2Q-20. For more statistics and commentary on the top five Android smartphone vendors in India, check out the full IDC report.


Apple's fortunes in India will begin to change in 2021 with the opening of their first flagship store scheduled for next year. In addition, with the Indian Government finally dropping their long-standing contentious clauses for smartphone makers, their new  'Production Linked Incentive' Program is going to positive for Apple.


Signs of this positive shift was quickly evident this quarter with news of Foxconn, Pegatron and Wistron's future production expansion plans for India being revealed. Apple's premium smartphone dominance is likely to grow in strength and we may see Apple aggressively expand their iPhone SE line-up or at least update its specifications to better compete with aggressive Chinese vendors.


While Apple will never be the smartphone "volume" leader in India, to be sure, they will definitely raise their profile and market share overall by selling Macs, iPads, services and future smartglasses of various kinds.


2 Tim Cook Shareholder meeting Feb 26  2020  Bloomberg photo


During Apple's annual shareholder's meeting in February, Cook stated: "I'm a huge believer in the opportunity in India. It's a country with a vibrancy and demographics that are just unparalleled."


10.0F1 - Apple Market Statistics Bar


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