The smartphone maker shipped more than 413,500 of the latest iPhones in the first month of its launch to November 15, which is close to what Apple sold in the entire October-December quarter last year in the world's fastest-growing smartphone market.
Shipments of the new iPhones made up nearly 74% of Apple's total in the month and a half that began October 1, according to shipment data from Cybex Exim. Apple imported 562,500 iPhones between October 1 and November 15. That compares with 500,000 units it sold in the October-December period last year, its best quarter thus far.
"The initial momentum was not that strong, so Apple went in for a change and offered discounts on the new phones," said Tarun Pathak, senior analyst at Counterpoint Research. "But the overall demand for Apple iPhone still remains strong, thanks to the strong aspirational value attached to the brand." Research agencies estimate that sales for the quarter ending December may exceed 700,000 units.
Apple launched the iPhone 6S and iPhone 6S Plus in India on October 16 at Rs 62,000-Rs 92,000 depending on the memory and model, about Rs 14,000-16,000 more than in markets such as the US, Middle East, Singapore and Hong Kong. Apple admitted that the high prices may have discouraged buyers.
"We've adjusted some prices around the world for the launch of iPhone 6S and 6S Plus... Obviously when we increase prices around the world, it's normal to see some impact on sales rates," Apple's chief financial officer Luca Maestri said late last month on an earnings call about the impact of foreign exchange fluctuations in parts of the world including India.
The weak debut prompted a rethink by Apple and the announcement of a buyback programme offering discounts of as much as Rs 34,000 in early November, just before Diwali. That strategy seems to have paid off, said retailers and those in the trade.
"Our iPhone 6S and 6S Plus sales were very good primarily due to the buyback offer, which started a week before Diwali," said the chief executive of a leading retail chain in south India. "It started out slow but because of that offer, which we marketed very well too, we had a very good sale for Apple phones." The 413,500 iPhones shipped in the first month represents a trebling of the monthly average that Apple clocked for its fiscal year ended September.
During the fiscal year, the company shipped a record 1.7 million iPhones, or 142,000 units a month, to India.
"Apple has more reach now compared to last year, so they (Apple) would make sure that their partners have a level of inventory to manage demand," Counterpoint's Pathak said.
In line with the growing importance of India -- among the few growing markets in the world and that too at a scorching pace -- Apple has expanded distributors to five from two since the beginning of the year.
"Apple's strategy is simple," said Pathak. "They want to get as many people as possible onto their ecosystem in India and ensure deeper distribution reach within India. The platform stickiness of the Apple ecosystem will ensure that Apple's existing user base is going to be more robust in the coming one year." This includes the launch of Apple Music in India at a price of Rs 120 a month for individuals and Rs 180 for families (up to 6 users).
On an analyst conference call last month chief executive officer Tim Cook was positive about India's potential in the long run. Also, recent relaxations in retail policy could see the company opening directly owned stores in India.
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