Apple TV set to help US giant add users in India

Apple’s problem is the low India user base for its iOS devices, the country being a predominantly Android device market.

Published: 12th September 2019 07:37 AM  |   Last Updated: 12th September 2019 07:37 AM   |  A+A-

Apple logo. Reuters

For representational purposes (File Photo | Reuters)

Express News Service

NEW DELHI: Apple Inc’s efforts to ramp up sales in the Indian market may find better traction going forward following its foray into the Over-The-Top (OTT) services segment. 

Analysts say that while the Apple TV+ service is priced at an extremely competitive Rs 100 per month in India, it might not pose a huge threat to OTT incumbents like Netflix, Amazon Prime and Hotstar even though the service is priced far lower than its competitors. Netflix’s recently announced low-cost plan for mobiles, for instance, is still priced at Rs 199 per month, with other packages beginning from Rs 499 per month. 

Apple’s problem is the low India user base for its iOS devices, the country being a predominantly Android device market. “Apple TV+ will work only on iOS devices. With such low penetration of Apple devices in India, the impact will be minimal,” noted Abhneesh Roy, SVP, Edelweiss Securities. 

But, Apple TV+ and other services could serve to drive the tech giant’s flagging sales and boost the number of iOS users in the country.. “Apple TV+ is a part of Apple’s evolution from a hardware-only positioning to Hardware+ company,” observed Faisal Kawoosa, founder and chief analyst, TechARC, “It will get new people on board, who will experience Apple through a service first rather than a device.”

New services like Apple TV+ are also expected to increase Apple’s wallet share among iOS users who have subscriptions with incumbent OTT platforms. “I expect the existing Apple ecosystem users to be among early adoptors,” Kawoosa said, pointing out that if just 1 per cent of around 11 million iPhone users in India opted for Apple TV+, “it would mean Rs 130 crore additional revenue annually”. However, how successful Apple is in leveraging its OTT service in India will depend on how strong it's content game is. 

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp