Apple’s New Devices Increases Its Flagging iPhone Sales

Apple’s recent launch of the iPhone 11 series is to speed up the flagging iPhone sales. This is powered by strong feature enhancements and upgrades. The launch is of three new iPhone models in different colors. The equivalent of the last model iPhone XR is iPhone 11, the iPhone XS & iPhone XS Max are iPhone 11 Pro and iPhone 11 Pro Max respectively.

Apple Meeting its Expectations

You can find added features like enhanced portrait mode and optical zoom to the iPhone XR successor and iPhone 11. The Pro versions include a third sensor update in its rear-face camera. In addition, the latest camera system allows capturing of ultra-wide-angle videos and photos in environments of low-light areas too. 

All three models have a new  Face ID multi-angle Sensors which supports easy unlocking of devices. In addition, you can also find faster A13 processors in each of the three iPhones. This improves augmented reality capabilities and power improved computer vision.

Also, the devices have internal upgrades which include a potential USB-C port and Taptic Engine. Furthermore, it has a great display features like 3*OLED Retina display for iPhone11 Pro Max and for iPhone11; 2*Liquid Retina display.

As per reports, Apple’s iPhone 11 series comes with Wireless Powershare which is similar to that of a Samsung Note 10 and Galaxy series. Furthermore, it has a triple-camera array, a feature that will be present in Google’s Pixel 4. 

This can add an advantage to Apple due to the lack of head jack and expandable storage in Samsung’s Note 10 series.    

Apple Found a Cheaper Production Base

Apple assembles its iPhones in the Asian nations. But it has been found by the latest Trump Administration that once the 15% import duty is levied from December, the Chinese-made iPhones would get costlier.

Fortunately, Apple contractor Foxconn developed a way out to help Apple to fight this challenge by boosting up output in India as reported by Bloomberg. Foxconn has already installed its plant in India in the year 2015 and at present has many assembly plants there. In addition, it has also planned to increase the production capacities of those plants by opening an extra two facilities for ramping output.  

Also, Foxconn has a base for its manufacturing shift. It can easily get cheap labor and the help of a favorable government who is desperate to control its rising unemployment and promote a flagging economy.

So you can see Apple’s contract manufacturer manufacturing more iPhones in India for both the local and export markets. Moreover, once apple starts its manufacturing in India, it will cut down the tariffs that the Trump government is planning to bring into effect later this year. 

Capturing the Indian Smartphone Market

Apple now got the opportunity to form the government of India to directly sell iPhones directly in the country’s market. In the past, there existed a complex regulations which meant that Apple was forced to depend on other partners or third-party distributors to sell its product. This led to an increase in the prices of the devices as these parties added their profit in it. 

Now, since the Indian government has removed restrictions on manufacturing local components, apple is going to make the best out of this opportunity. Already Apple has spent a huge ton of capital on retailing infrastructure. 

As per government sources, Apple has planned an investment of INR 1,000 crore for setting up an online retailing platform and stores across major metropolitan cities of India.

Apple initiates its own infrastructure in India. The prices of its devices will go down as there will be no middleman demanding a share of its profit. This, as a result, will enable Apple to become more competitive from a pricing perspective in the market. 

Thus, the rivals in India got the opportunity to undermine the iPhone to third place in the category of premium smartphone segment. On the other hand, the contribution from Samsung and OnePlus move back and forth.

iPhone’s Performance

In the third quarter of fiscal year 2019, iPhone sales decreased from 11.8% to 25.99 billion USD from the previous year-ago quarter and resulted in 48.3% of total turnover. The deterioration of the sales is due to the severe competition of smartphone makers from China. 

However, it is to note that the active installed iPhone base has reached an increased and all-time high year-over-year in each and every top 20 markets of Apple. 

Ending Note

Thus, from the above discussion, you can see Apple is making a correct effort by entering into this market deeply. The company’s latest steps could increase the revenue of 2 billion USD from the Indian market to a massive number in the foreseeable future. 

Moreover, people rely on Apple’s privacy factor. This gives the iPhone a great competitive advantage over smartphones which are Android-based.