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What is the demographic data of the target customer for Apple's iPhones in India?
Hello and thank you for your question in regards to the demographic data of the target markets for Apple in India. In short, Apple’s main target market in India is younger age groups between 18-30 years old that are professionals, managers, or executives with a higher disposable income. Their focus is on urban areas with middle and upper class people.
METHODOLOGY
To accurately address the question, I have ensured to limit my research to recent and reputable sources such as corporate websites, industry reports, and trusted media sites. These include Live Mint, Factor Daily, Counterpoint Research, and the International Business Times. I first began by discussing the Indian market in relation to Apple. Next, I proceeded in researching the demographics of their target markets in the country by age, income, geographical location, gender, and class. Finally, I have also included information on the company’s future growth in the Indian market.
FINDINGS
In January 2016, Apple reported a growth in sales of iPhones in India by 76%. The company shipped 1.7 million phones to India in 2015. The country will soon be the second largest smartphone market in the world in regards to ownership. Apple currently has a user base of 220 million and a market penetration of 30% in India.
The specific demographic that the company is targeting is younger age groups. That is the case as more than half of the country is under the age of 25 years old. Moreover, by 2020, 900 million people will be 29 in India and will be seeking the use of digital products. However, one of the issues encountered with reaching this market is their smartphone competitor, Android, which cost less than a third than iPhones.
Apple's smartphones are considered a premium in India as the average smartphone costs under $250 while iPhones cost around $1,000. This presents an issue for Apple when it comes to increasing sales in their target markets. However, the company is looking into selling used and refurbished iPhones at a lower cost to increase its market penetration in the country.
Apple's target market in India is people aged 18-30 years old as they are seen to have a higher disposable income, economic growth opportunities, and are well travelled. Additionally, they are perceived as wanting luxury goods such as iPhones and viewing them to be of good value considering their high quality.
It targets people in urban areas as that is associated with higher disposable incomes. It focuses on reaching professionals, managers, and executives that are middle and upper class. Additionally, while a higher percentage of men own smartphones (27%) than women (17%) in the country, Apple's efforts are focused on reaching both genders within their demographics.
FUTURE GROWTH
Apple currently has less than a 2% market share in India as the country was always placed low on their marketing efforts. This, however, is changing as the company wishes to establish itself in the country. They are doing so by first introducing new stores in large cities such as New Delhi, Mumbai, and Bangaluru by the end of 2017. At this point, Apple's premium sellers are currently responsible for selling their products.
The brand is also encouraging app developers in the country to come up with ideas for apps suited for the Indian market. Furthermore, the country is anticipated to see a growth in the sale of units from 118 million units to 174 million.
CONCLUSION
To summarize, Apple’s main target market in India is younger age groups between 18-30 years old that are professionals, managers, or executives with a higher disposable income. Their focus is on urban areas with middle and upper class people.
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