The iPhone 12 series has impressive sales for appeal (NASDAQ: AAPL), and the company is expected to significantly increase production in 2021 to meet the strong demand for its 5G supply. This is not surprising, as Apple has a large installed base of users ready to upgrade to 5G smartphones – and the company has given them a good reason to make the leap with the cheap iPhone 12 series.
More importantly, the iPhone 12 could help Apple push the envelope in India, a key market where traditionally struggled. Let’s see how.
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The fifth generation smartphones are about to launch in India
Apple has struggled to gain a significant market share in India due to its premium pricing. It reportedly held only 2% of the Indian smartphone market at the end of 2019, despite a 41% increase in shipments during the year. The good part is that Apple is building on its success in India in 2019, and that it shipped an estimated 2.5 million iPhones in 2020, making it the best year in 2017 in the country.
But that still does not make Apple a dominant player in India, as total smartphone transactions there stood at 150.2 million in 2020, according to Canalys. However, 2021 could be a much better year for the California company, thanks to a sharp increase in 5G smartphones in India.
Counterpoint Research predicts that India’s 5G smartphone shipments would grow more than ninefold to 38 million units by 2021, up from an estimated 4 million last year. Apple is in a firm position to take advantage of this massive leap.
Apple can get a nice lift
The 5G-enabled iPhone 12 mini is located in one of the country’s fastest growing smartphone segments: devices of $ 500 and above. The iPhone 12 mini, originally priced at 69,900 rupees (about $ 960 at current exchange rates), can be purchased after the trade-in and other offers for 47,900 rupees (about $ 660) at Apple’s online store in India. That makes Apple’s phone roughly equal to other 5G flagship smartphone offerings in the country.
The OnePlus 8T 5G, for example, sells for 42,999 rupees in India. The more expensive OnePlus 8 Pro carries a price of 54,999 rupees, which puts it close to the iPhone 12’s price after exchange of 57,900. In addition, Apple is expected to start offering manufactured iPhone 12 units from next month, a move that could help the company significantly lower prices and make its 5G phones cheaper than those of competitors after trade-in and discounts.
According to IDC, the demand for premium smartphones in India (meaning it costs more than $ 500) increased by 91% in the third quarter of 2020. Apple is one of the leading players in this segment, with its market share of premium smartphones reaching about 50% by 2020.
A closer look at the list of 5G smartphones offered for sale in India suggests that most devices are higher than the 30,000 rupees (about $ 411), which bans some entry-level devices. Apple could therefore see a significant increase in smartphone shipments in India this year if it continues to hold its market share in the premium segment.
Meanwhile, there are rumors that Apple will put 5G connectivity in its iPhone SE entry level this year. Gossip about the supply chain indicates that the next iteration of the iPhone SE could be the same A14 Bionic processor that powers the iPhone 12, and that it could be launched in the second half of the year. Apple will have a greater chance of ruining a larger share of the 5G smartphone space in India if it succeeds in issuing a $ 400 iPhone 5 with 5G.
All in all, it would not be surprising to see Apple’s iPhone sales rise in India this year and help the company climb market share. More importantly, Apple could make big gains in the long run from India’s 5G smartphone market, as shipping is expected to reach 144 million units by 2025, according to a third-party report, making it a leading stock for investors to buy. take advantage of India’s emerging 5G market.