Apple Inc. unveiled its big iPad Pro last week with an aim to position it as a content creation device, and a replacement for the laptop. However, experts doubt if the new device will help Apple to make inroads in one of its important growth markets, India.
Price point a big factor for many Indians
Though many top-level executives already use iPads, they are not very common at middle and lower levels. Analysts believe pleasing Indian executives won’t be easy for Apple, and the US firm will have to struggle on the price front along with other challenges, says a report from First Post.
Apple Inc. is working hard to “penetrate the enterprise,” but for the Indian market, the “price point is still high.” Even with the EMI plan, “I don’t see it impacting the Indian enterprise market significantly,” says Vishal Tripathi, research director, Gartner India.
IDC South Asia head, Jaideep Mehta agrees with Tripathi, saying cost is a big factor in India, and he does not believe the iPad Pro to be a “be a game-changer in India.” However, if Apple comes up with “package around total cost of ownership,” it could attract Indian buyers, says Mehta.
However, Greyhound Research CEO Sanchit Gogia has a different stance on it. Though he agrees the iPad Pro won’t make it big, he believes the price won’t be the primary factor in enterprise. “Nobody is going to buy this kind of product just looking at cost, but it will be bought based on functionality or purpose,” Gogia said.
Though a big screen, keyboard, support for CAD and an ability to run multiple apps along with others benefits are all positive for the iPad, the fact is the “the tablet market itself is a dying one,” says Gogia.
Despite, the hardships, experts do believe that Apple would be able to capture niche markets like design houses, the hospitality sector, interior decorators, etc.
Apple vs. Samsung in India
Apart from tough Indian conditions, Apple will also have to face its arch-rival Samsung, who recently claimed that it enjoys over 45% of the smartphones market share in India, “in the price band of Rs 40,000 and above.”
But, with the launch of the iPad Pro, many believe the US firm to have an edge over Korean firm’s Galaxy Note. Revealing Apple Inc. ’s plan to push its sales in India, a recent report from the Economic Times said the US firm, in a secret meeting with trade partners last week, expressed its intention to “advance the launch of Apple Watch,” and also push its sales for the new iPhones and iPad for the vital October-December quarter.
On Friday, Apple shares closed up 1.46% at $114.21. Year to date, the stock is up over 1% while in the last one-year, they are up over 12%.