From Delhi to Mumbai, Apple Seeks a Bigger Slice of The Pie

From Delhi to Mumbai, Apple Seeks a Bigger Slice of The Pie in India: An International Marketing Case Study Mike Williams, Adam Pedraza, Taylor Greer, Brent Cassidy, Nick Hill, Chandler Burger, Steven Wehde, and Caleb Fortney Abstract Apple Inc., headquartered in the United States, is the world’s largest technology company with revenues of $265 billion as of 2018 (Johnson, 2012). Apple has been trying to compete in India’s smartphone market, the world’s fastest-growing and second-largest smartphone market globally, accounting for nearly 30 million purchases per quarter (Sheth, 2019). Despite its success in the U.S., Apple has not been able to overcome the unique challenges it faces in India. It faces entrenched Asian competitors like Xiaomi, Samsung, Vivo, and Oppo, who have a dominant share of the market. Indian consumers are very price sensitive and value deals (Lu, Yu, & Soman, 2016) which means Apple’s high-quality, premium pricing strategy only appeals to a small segment of affluent consumers. However, its competitors offer similar or even more localized features, at much lower prices. Indeed, over 75% of smartphones sold in India cost less than $250, whereas the iPhone is priced starting at $550 or higher (Cohan, 2018). Apple also faces other challenges in India, such as limited Internet connectivity, sourcing issues due to the government’s “Make in India” initiative, and limited consumer purchasing ability (Kashyap, 2017). This case study examines Apple’s overall marketing strategy in India in the context of the smartphone industry, competitors, consumer attitudes and government regulations. This case study will initiate discussions on how Apple must adapt its strategy to be able to succeed in India’s growing smartphone market. Keywords: Apple, iPhones, smartphones, India, mobile phones, emerging market, case study, international marketing Note: References available on request