APPLE Inc.

 Group 4 : Utkarsh Agarwal , Nikita Kedia , Aravind Vijayan , Subrato Pal, Rajat Nayak
8/1/2019
UTKARSH AGRAWAL FMS/MBA/2018-20/014

Strategies previously used by Apple.

1. Apple under Steve Jobs has always believed in having Deep Focus. It has kept its product
offerings lean when compared to its competitors, following the one size fits all concept.
Products have easy to use design and state of the art components. It has helped Apple create a
niche for its products.
2. It has always wanted to maintain Exclusivity for its products and services. This strategy has made
Apple a Cult brand where in extremely Brand loyal customers keep purchasing their products at
a premium for availing these services. But as the market stagnated the same services are then
opened for other users as well. Eg: Itunes stores
3. Apple has innovated not only its products and services but also its Retail store. Making it more
of an experience centre. They have even gone ahead and called it an Apple Experience Store.
These stores have given them the End to End connect with their final buyers and the user
experience inside the store has enabled the Market to understand what is so unique about using
an Apple product. This has greatly increased their overall Sales.

Should Apple enter the Rural Market in India?

Apple has of-course established itself as a Niche brand in India. A Cheaper phone with the Apple brand
will not resonate with most as the brand perception is not in sync with the offering. Breaking out of this
image is a long and risky process. Hence, Apple for entering the Rural Market should consider launching
a different brand under the Apple Inc umbrella wherein the focus would be Tier 2, Tier 3 and the Rural
areas. The price range could be between 10,000-20,000.

NIKITA KEDIA FMS/MBA/2018-20/010

SIZE OF INDIAN MOBILE MARKET

During the year ending 31.3.2019, the smart phone shipment expanded 14.5% to 142.3 million units
from 124.3 million units in the same period the previous year while for the year ending

It is estimated to increase to about 442 million in 2022. (Source: statista.com)

GROWTH OF MARKET

Chinese have the majority share of the market with Xioami, Vivo, Oppo and Realme having 60% of the
Indian smartphone market.

Xiaomi has 31.4% share with 9.5 mn units

Samsung has 24.4% share with 7.3 mn units

Vivo has 15% share with 45 mn units

Oppo has 9.3% share with 2.8 mn units

Realme has 4.2% share with 1.3 mn units

Others have 15.7% share with 4.7 mn units

(Source: gadgetsndtv.com)

SHOULD APPLE GO FOR RS. 16000 PRICE RANGE IN INDIA?

Apple should not go for 16000 price range phones in India. This is due to the fact that Apple has
positioned itself as a premium based market and thus will lose its brand equity.

The market share of Apple has come down due to the expansion of the size of the market and
competition is growing faster than the company.

ARAVIND VIJAYAN FMS/MBA/2018-20/23

Project Apple path in India by 2025

What happened? Till March of 2019, apple had a fall of 25% in the phone category. From April to May, apple
achieved a 3% revenue growth in the smart phone sector. Sales of iphoneXR boosted which comprises of 2/5 of
the 3% Revenue growth(Tarun Pathak, research director at Counterpoint Research)
How? 20% discounts boosted sales,200,000 units of shipment
Why?Premium phone segment completion, Oneplus-43% share, Samsung-22%, Apple- 20%

Apples USP
1) Apple Services (app stores, music, itunes, applecare, apple pay, lisesing) : 21% of overall apple revenue is
generatd from services. 10% increase in last three years. Record Rs 1146 crore invested for R&D.
2) Apple Secuirity and Privacy : Security and Privacy areas of concern to all users and apple can market this
niche in their premium phone segmet.

India USP to apple

1) Cisco estimate of double users of smartphones by 2022, i.e 80 crore users
2) Software industy and skilled labour , (5-6 time less expensive than that of USA)

Road Ahead:
- Make Cheap Phones in India with Make in India Initiatives, 100%FDI
- Target Apple Services through phones to Education, Media and others top end categories.
- Single-brand retail Policy India has been liberalised, Apple advantage, do not have to go with third party
anymore
SUBRATO PAL FMS/MBA/2018-20/053

Findings :

 Just made a shipment of 1 million phones as compared to 18 units done by Xaomi (*Business
Insider)
 Apple now has only 1% market share in India. (*economic times)
 Apple’s highest selling phone in India is iphone 6 and iphone SE.
 Apple launched iphone 6 in India secretly in 2017 which was launched in 2014 in United States .
 Growing demand for old phone models with discounts, Apple generally promotes the lower
models of phones in India other than its high end models.
 BCG Matrix of Apple

Apple By 2025
 iPhone maker said to be planning to boost manufacturing capacity, open branded retail stores in India
 Apple will be partnering with individual stores to raise sales targets by four times to 40 or 50 units
every week.
 Apple is also working on customising SIRI to Indian languages
 The ARKit , the augumented reality kit is regarded as the future technology ,
 AR Menu , AR facility in apple maps , Shopping ,AR gaming Home decor etc .. ARkit will be
provide such experiences through their various apps available in their app store

RAJAT KUMAR NAYAK : FMS/MBA/2018-20/033

As per PESTEL Analysis, (i)considering political factors that there should be free trade policies
that Identifies the stability of the advanced countries ' political environment as a chance for
Apple to develop, taking into account the decreased political issues influencing these countries '
company activities. The political external factor trade disputes between US and CHINA creates
threat against company’s potentialgrowth.(ii) considering economic condition, opportunity
brings for the rapid growth of developing countries as the developed countries have already
bigger opportunities to expand company’s growth.Based on this, speed and effectiveness are
critical in Apple Inc.’s growth and expansion efforts because competitors also target these same
economic opportunities.
Adding to NFU(need for uniqueness) apple consumers seek to be more unique. They keep deep
interest to particular object and especially has the potential to affect individual’s identification.