Apple’s failed strategy on the high-end market in India

For a few years now, Apple has been trying to get into the huge Indian market using a special approach.

Unfortunately for the manufacturer, his hopes did not materialize and the results are not very good. Worse, in 2018, the American giant suffered a severe setback in this booming market.

Indeed, India is not competing today with China, the US or Europe with 145 million smartphones delivered last year (80 million in 2014). But with a 10% increase and as global growth declines and the recession takes hold in China, India is emerging as a growth driver.

Selling old products: it doesn’t work

According to Counterpoint, Apple has seen its deliveries to India drop by 50%. Apple’s sales in the country had already shrunk. In 2018, they were even more so with just 1.7 million iPhone sold, compared to 3.2 million a year earlier.

Is it due to a too small high-end segment and limited purchasing power? Not so sure, or at least not only. Because as the firm points out, another manufacturer, which entered the Indian market late, is currently gaining the lion’s share.

In the first half of 2018, OnePlus replaced Apple and Samsung to become the leading manufacturer in the premium segment, i.e., smartphones with 30,000 rupees or more ($420 and more). It is a performance in a market where the average purchase price of a smartphone is around $150.

Top of the range, however, is Apple’s preserve the market in most countries. In India, where more than 700 million people already have a mobile phone (most of them still a feature phone, at 56%), the iPhone is not the current benchmark for premium.

Premium 50% cheaper at OnePlus

A bad omen for Apple’s development in a market whose size should put it ahead of the United States? The strategy put in place by Tim Cook’s firm has not yet taken off, and the wealthy Indian class is turning mostly to other manufacturers.

More recently, Apple has tried to popularize and sell the iPhone XR. Problem: the smartphone cost more than 1,000 dollars, 40% more than its price in the US. This price makes competing products even more attractive.

OnePlus 6 offers smartphones equipped with the latest technologies, at half the price of an iPhone. Despite this setback, and the announcement early this month of the first earnings warning in the past ten years, Tim Cook remains “very optimistic” about the country’s growth prospects.

However, there is nothing about how the multinational plans to take advantage of these growth prospects. The only certainty, Apple will not produce a specific and cheaper iPhone for India. The CEO also points out that the company’s activity in India now represents more than 2 billion dollars.

Urus Lamborghini steps into the SUV game

Urus: Lamborghini steps into the SUV game!

A newcomer to the Lamborghini family, the Urus intends to set a new benchmark in the sports SUV category and, aims at doubling Lamborghini’s sales over the next few years.

The numbers are staggering.

Starting with those extracted from the technical data sheet, since the Urus is the most powerful version of the V8 4-litre twin-turbocharged VW V8 to date, at 650 hp. As a result, Lamborghini announces that the Urus will be the first SUV to exceed 300 km/h. Pretty amazing no?

Go from 0 to 100 km/h in just 3.6 seconds.

Lamborghini expected to build 3500 Urus per year

The Urus is also supposed to be for Lamborghini what the Cayenne is for Porsche, that is to say, the one that will allow in the short term to double the sales of the company. From 1,000 units in the first year, the Italian brand plans to assemble 3,500 more in cruising mode, or even slightly more if demand requires it.

It compares to 3500 Lamborghini models sold in the last fiscal year. And it would be better if this objective were achieved, because Lamborghini has just invested heavily to produce it, doubling the surface area of its factory while modernizing it considerably.

23-inch wheels

Thanks to its variable ground clearance suspension, Lamborghini also suggests that the Urus has real crossing capabilities, as evidenced by the proposed driving modes. Be careful, however, before leaving the asphalt ribbon of civilization: it would be a shame to destroy an ultra-low tire and therefore necessarily very expensive since mounted on rims ranging from 21 to 23 inches in diameter depending on the option chosen.

Vector distribution and four steering wheels

For those who fear that this choice will generate an underachieving attitude, Lamborghini wants to be reassuring to its customers!

The use of a differential with vector distribution of torque, and steered rear wheels should make it possible in all circumstances. Maneuverable in the city, agile at low speed on sinuous courses, as stable as possible at high speed.

Audi Type Transmission

The 650 horsepower of the V8 is distributed to all four wheels via an 8-speed automatic transmission and a Torsen-type central differential that allocates 40% of torque to the front axle, 60 to the rear.

Commercialization of Urus is expected to begin in the summer of 2018.