Apple Continues to Struggle in India as iPhone Sales Drop 35 Percent in 2016

Despite India's overall healthy growth in the smartphone market -- currently sitting as the third largest behind China and the United States -- Apple is having a tough time gaining ground in the country. According to a new report from Strategy Analytics, Apple saw a drastic percentage dip in iPhone users from 2015 to 2016, with 35 percent fewer iPhone devices sold this year. Earlier in May, Apple CEO Tim Cook admitted iPhones are too expensive in India, potentially harming the company's sales figures as it tries to grow.

In its new report, the market research firm said that Apple sold just 800,000 handsets in Q2 2016, while in the same year-ago quarter the company sold 1.2 million units. These deflating sales numbers rippled into Apple's operating system marketshare in India, essentially getting halved down from 4.5 percent in Q2 2015 to 2.4 percent in Q2 2016. Director of Strategy Analytics, Woody Oh, pointed out a few ways Apple might go about course correcting its current struggles in the country, including the ongoing saga of boosting its retail presence in India.

iPhone-6s-main

“Apple iOS fell 35 percent annually and shipped 0.8 million smartphones in India in Q2 2016. Apple’s smartphone marketshare has halved from 4 percent to just 2 percent in India during the past year. Apple iOS will need to reduce iPhone pricing to cheaper levels, attract more operator subsidies and enlarge its retail presence through Apple stores or online channels if it wants to regrow significantly in the future.”

Apple Stores aren't as ubiquitous in India as they are in other parts of the world thanks to the country's rules on foreign direct investments, which required 30 percent of goods sold by a foreign company to be manufactured or produced within India. Thankfully, after a ruling in June cleared the way for companies to circumvent that law, Indian Prime Minister Narendra Modi set a precedent by granting Apple a three-year extension on the strict local-sourcing rule, due to its single-brand retail company status selling "cutting-edge technology." Companies similar to Apple are expected to get similar treatment.

While the relaxation of these rules should help Apple moving forward, it doesn't change the fact that Android remained the dominant force in India this year. In total, 29.8 million Android smartphones shipped within the country in Q2 2016, growing from 23.2 million in the same quarter last year. Similarly, Google's Android operating system remained the dominant force in the Indian mobile market with a record 97 percent hold for the quarter, increasing from 90 percent a year ago.

Apple's retail future in the country might be turning around, but the company is still hitting smaller roadblocks on its route to increasing sales figures in India. In May, Commerce and Industry Minister Nirmala Sitharaman ruled "not in favor" of a proposal laid out by Apple to sell used iPhones in the country. Thanks to Apple's repeated growth frustrations, Strategy Analytics said that Android's domination of the Indian smartphone market "looks unbeatable right now, due to its deep portfolio of hardware partners, extensive distribution channels, and a wide range of low-cost apps like Gmail."

Tag: India

Popular Stories

iOS 26

iOS 26.3 and iOS 26.4 Will Add These New Features to Your iPhone

Tuesday February 3, 2026 7:47 am PST by
While the iOS 26.3 Release Candidate is now available ahead of a public release, the first iOS 26.4 beta is likely still at least a week away. Following beta testing, iOS 26.4 will likely be released to the general public in March or April. Below, we have recapped known or rumored iOS 26.3 and iOS 26.4 features so far. iOS 26.3 iPhone to Android Transfer Tool iOS 26.3 makes it easier...
imac video apple feature

Apple Makes Its Second-Biggest Acquisition Ever

Tuesday February 3, 2026 12:45 pm PST by
Apple recently acquired Israeli startup Q.ai for close to $2 billion, according to Financial Times sources. That would make this Apple's second-biggest acquisition ever, after it paid $3 billion for the popular headphone maker Beats in 2014. This is also the largest known Apple acquisition since the company purchased Intel's smartphone modem business and patents for $1 billion in 2019....
Apple Logo Zoomed

Tim Cook Teases Plans for Apple's Upcoming 50th Anniversary

Thursday February 5, 2026 12:54 pm PST by
Apple turns 50 this year, and its CEO Tim Cook has promised to celebrate the milestone. The big day falls on April 1, 2026. "I've been unusually reflective lately about Apple because we have been working on what do we do to mark this moment," Cook told employees today, according to Bloomberg's Mark Gurman. "When you really stop and pause and think about the last 50 years, it makes your heart ...
iphone 16 pro colors 1

Apple Begins Selling Refurbished iPhone 16 and iPhone 16 Pro Models at Lower Prices

Wednesday February 4, 2026 7:44 am PST by
Apple today began selling certified refurbished iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max models on its online store in the U.S., with prices discounted by 12% to 22% compared to Apple's current or former pricing for the devices. Here were Apple's starting prices when the devices launched in September 2024: iPhone 16: $799 iPhone 16 Plus: $899 iPhone 16 Pro:...
Apple TV Color

Apple TV Announces 12 New Shows and Films Coming This Year

Wednesday February 4, 2026 12:29 pm PST by
Apple on Tuesday previewed 12 new shows and films that will be premiering on the Apple TV streaming service throughout 2026. The new series: Imperfect Women — March 18, 2026 Margo's Got Money Troubles — April 15, 2026 Widow's Bay — April 29, 2026 Maximum Pleasure Guaranteed — May 20, 2026 Cape Fear — June 5, 2026 Lucky — July 15, 2026 The new films: Eternity — ...

Top Rated Comments

rocknrollme Avatar
124 months ago
That's the problem when selling a thousand dollar phone in a country where most people struggle to eat everyday.
Score: 29 Votes (Like | Disagree)
Kobayagi Avatar
124 months ago
"Earlier in May, Apple CEO Tim Cook ('https://www.macrumors.com/roundup/tim-cook/') admitted iPhones are too expensive in India ('https://www.macrumors.com/2016/05/24/iphones-too-expensive-india-apple-tim-cook/'), potentially harming the company's sales figures as it tries to grow."

Does this mean they're a bargain in the rest of the world? I think not. Just wait till they add the "Pro" name and make them even more expensive. ;)
Score: 27 Votes (Like | Disagree)
ka-spot Avatar
124 months ago
don't know about india, but apple obviously can't give us something new. I just can't wait to skip iPhone 7...
Score: 19 Votes (Like | Disagree)
BvizioN Avatar
124 months ago
That's what usually happens when you get lazy!
Score: 17 Votes (Like | Disagree)
nope7308 Avatar
124 months ago
Good.

Apple needs to be knocked down a peg or two. Resting on their laurels a little too much, if you ask me (and even if you don't).
Score: 17 Votes (Like | Disagree)
Rogifan Avatar
124 months ago
That's what usually happens when you get lazy!
India is incredibly price conscious; Apple doesn't sell cheap phones. No surprise here.
Score: 15 Votes (Like | Disagree)