Earlier, Apple and Samsung phones were mostly purchased in big cities like Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, etc., but now Apple and Samsung phone sales increases in small towns. The trend is changing, and their demand is continuously increasing in small cities as well. Small cities are now becoming big markets for Apple. Offering discounts on premium phones by companies, including Apple and Samsung, has boosted sales in smaller towns and cities, which have so far outpaced major metros this festive season. Counterpoint said sales of premium smartphones priced above Rs 30,000 in the sale by online retailers from tier-II cities and below reached 70-80%, which is usually around 50-60%.
Apple and Samsung phone sales increases 60% in small towns
According to the ET report, most of Apple’s iPhone sales, up to 60 percent, are coming from Tier-II cities. Earlier, 65-70 percent of Apple’s sales came from tier-1 cities, but there has been a lot of change in the last few years. Since the Covid-19 pandemic, thousands of people have shifted to their hometowns, due to which they needed a good smartphone for work-from-home setups.
Talking about the change in sales, Neel Shah, vice president, Counterpoint Research, told ET that “before the pandemic, Apple’s focus was limited to Tier I cities and increasingly Tier II cities through premium resellers and large regional distributors. Because there was more demand from there, it was more than 65-70 percent of the total sales.”
Changes in Apple’s channel strategy
Apple changed its channel strategy in 2019 to increase its sales and focused on e-commerce platforms as well as large retailers like Croma and Reliance Digital stores. This led to a change in the shopping habits of Indian users as they became more willing to buy expensive products online. Apart from this, Apple also provided a no-cost EMI option for its iPhone. With a large sales network, Apple products can reach more customers living in many regions.
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