UPDATED 23:54 EST / AUGUST 06 2018

APPS

Apple is planning a new strategy for India based on better deals and improved apps

Apple Inc.’s failure to win over the Indian audience with its iPhones has been well-documented over the years. The company has struggled to win any significant market share in the world’s second-largest market for smartphones, and it recently lost three of its highest-ranking executives in the country.

However, a report in Bloomberg Monday said Apple is planning a renewed push into the country with a focus on better deals for consumers, new retail initiatives and improved software applications.

Apple’s biggest challenge in India is pricing. Its iPhones have struggled to gain traction in the country thanks to a combination of high import tariffs and a consumer base that prefers cheaper smartphones. While the iPhone X model retails at around $999, the average Indian consumer has a smartphone budget of just $150. And with numerous entry-level Android phones available well below that low price point, it’s a struggle for Apple to sell even its aging iPhone SE model that retails around $300, let alone its higher-end models.

Adding to Apple’s problems is that it apparently has little control over the price of its devices in India. According to Bloomberg, Indian retailers and wholesalers have a frustrating habit of changing iPhone prices daily without any reason. This causes consumers to “haggle or wait hopes of a better deal,” Bloomberg’s report said.

The company is hampered even further by a 20 percent import tax on its higher-end iPhone models, Bloomberg said. Apple has tried to reduce the impact of this by boosting manufacturing in India, although its present facilities only produce the older iPhone SE and iPhone 6 models, and sales of those are on the wane because of their age.

So Apple, led by new India executive Michel Coulomb, is trying to address this problem partly by improving the retail experience for Indian customers. Bloomberg said the plan is to get outside retailers to hit customers up with more aggressive and constant deals by allowing them to offer promotions all year round. The company will also encourage resellers to set up improved product displays and help them to provide better training to consumers on how to use its devices.

In order to take advantage of the better deals, third-party retailers will need to hit minimum sales targets or else be barred from selling Apple’s products, the report added. In addition, Apple will also open its own official stores in cities including Bengaluru, Mumbai and New Delhi.

Besides stepping up its retail efforts, Apple will also work to improve its own applications, many of which have been the subject of numerous complaints from Indian users. For example, its personal assistant Siri doesn’t support many of the numerous local languages used in India, while its Apple Maps app has also been slated for poor performance, Bloomberg said.

Apple is now said to be planning to improve these things with support for more languages in Siri and better guidance for the Maps App. The company will also work to improve support for Apple Pay within India, Bloomberg said.

Image: StockSnap/Pixabay

A message from John Furrier, co-founder of SiliconANGLE:

Support our mission to keep content open and free by engaging with theCUBE community. Join theCUBE’s Alumni Trust Network, where technology leaders connect, share intelligence and create opportunities.

  • 15M+ viewers of theCUBE videos, powering conversations across AI, cloud, cybersecurity and more
  • 11.4k+ theCUBE alumni — Connect with more than 11,400 tech and business leaders shaping the future through a unique trusted-based network.
About SiliconANGLE Media
SiliconANGLE Media is a recognized leader in digital media innovation, uniting breakthrough technology, strategic insights and real-time audience engagement. As the parent company of SiliconANGLE, theCUBE Network, theCUBE Research, CUBE365, theCUBE AI and theCUBE SuperStudios — with flagship locations in Silicon Valley and the New York Stock Exchange — SiliconANGLE Media operates at the intersection of media, technology and AI.

Founded by tech visionaries John Furrier and Dave Vellante, SiliconANGLE Media has built a dynamic ecosystem of industry-leading digital media brands that reach 15+ million elite tech professionals. Our new proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.