Apple, the numero uno brand in India’s premium smartphone segment, surprised analysts by crossing the 10-million shipments mark in 2023.

According to Counterpoint Research, this is the first time the US-based company had managed to capture the top position in India, in terms of revenue in a calendar year.

It is no mean feat even for the world’s most valuable company with a net worth of $2.7 trillion, which started off its journey in India’s price-sensitive consumer market in 2008. Apple could sell barely a few thousand units of iPhone in its debut year in India. The company was not even investing in local advertising until 2015, recall industry experts.

It spent less than one per cent (Rs 452 cr) of its revenue (Rs 49,200 cr) in advertising and promotional activities in FY23, including its entire product range and cloud services, as per the company’s financial report accessed by e4m via Tofler.

“The marketing spend in India appears to be very low compared as globally Apple spends 8-10 per cent of its revenue into advertising and promotion,” says tech analyst Neil Shah, Partner & Co-Founder at Counterpoint Research.

Despite such little spending on advertising, the US-based tech firm commands nearly six per cent of the market share in the smartphone segment in the world’s largest consumer market, up from one per cent in 2018, as per a study by CyberMedia Research (CMR), Prabhu Ram, Head - Industry Intelligence Group at CMR told e4m.

Samsung has the largest market share, at 18 per cent, followed by Vivo with 17 per cent share in India’s predominantly Android market.

The iPhone’s phenomenal growth coincided with the launch of the company's two maiden outlets in India in April 2023-Mumbai and Delhi-by the hands of none other than the company’s CEO Tim Cook.

“The twin flagship stores form a key pillar in Apple India's playbook to gain strength in this strategic growth market. Besides, its online store has made products accessible and available to a growing aspirational breed of consumers, including content creators, in Tier II cities and towns”, noted Prabhu Ram.

Apple has gradually boosted its reliance on India in recent years by setting up three manufacturing units. It has bigger expansion plans now, say analysts.

Marketing sans a celeb face

Brand ambassadors are usually considered essential for business success in India. Apple doesn’t have one. Yet, it enjoys the status as one of the most successful brands. “iPhone’s brand equity is so high that it doesn't require a brand ambassador to create awareness,” quips Shah.

The smartphone maker started investing in marketing and promotions in India in 2015. Its first-ever local campaign revolved around storytelling, with a focus on the human experience rather than technical specifications. Conceptualized by Leo Burnett, the campaign promised to end the wait for 'something special', just like Indian weddings.

The US-based tech giant had floated TV commercials in India before, but they were created abroad. Nevertheless, the ad spends grew gradually. Neither Apple nor their media agency Omnicom Media Group (OMG) ever speak on their marketing strategy.

“Apple has always maintained a tech-savvy, smart, aspirational and upmarket image in India. Most of their advertising is global - and deliberately so. It keeps the brand a notch above local and even global brands,” says veteran adman, brand expert and MD of Rediffusion, Dr Sandeep Goyal.

Dr Goyal further explains, “Apple partners largely with the telecom operators and funds advertising for them. It is their model of specific international communication with no localization.”

“Apple tends to opt for premium positions across media. It excels at creating a sense of desire and aspiration among consumers through carefully crafted advertising campaigns.”

It positions its range of products - iPhone, iPad, Apple Watch, Mac, and Apple TV - as symbols of status, creativity, and innovation. From the sleek and stylish design of its products to the layout of its retail stores, design plays a central role in the tech giant’s marketing strategy.

Minimalist campaigns

Rather than focusing solely on technical specifications, Apple in its promotional campaigns highlights the benefits and experiences that its products offer to consumers. Whether it's the intuitive user interface of iOS, the seamless integration between devices, or the quality of its cameras or batteries, Apple emphasizes how its products can enhance users' lives.

“Apple's ad campaigns are known for their simplicity, minimalism and ability to create a strong emotional connection with consumers,” says Amit Wadhwa, CEO of dentsu Creative India.

Wadhwa explains, “New versions of iPhones evoke euphoria worldwide even before launch. By leveraging secrecy and suspense, Apple creates excitement around its upcoming products. Besides, iPhone promos are simple and don’t describe many technical features. Their retail outlets reflect the same simplicity, offering a clean and welcoming environment for customers.”

Wadhwa credits former Apple CEO Late Steve Jobs, for creating a powerful global brand with his passion and focus on consistent innovation.

The California-based firm has cultivated a loyal customer base which is passionate about the brand. Through Apple Store's Genius Bar, online forums and user groups, it encourages customers to engage with each other and the brand itself.

Apple often differentiates itself from the rest of the competition by meaningfully showcasing the big difference.

Wadhwa recalls ‘Shot on iPhone’ campaign in 2023 that began as a User Generated Campaign (USG) when iPhone users were invited to share their best shots on Instagram or Twitter, and after a review of submissions from a panel of judges, a select few were featured on billboards, Apple retail stores, and online.

This was considered as a unique move to reach people's minds and ask them to tell the story themselves without saying a single word about their tech or camera quality, Wadhwa noted, adding that the campaign created a buzz beautifully across the globe.

While the phone makers’ strategy largely remained around its iconic ‘Shot on iPhone’ campaign, it later released a print ad in India about a short film shot on iPhone.

Filmmaker Vishal Bhardwaj made a comeback with a 30-minute film titled 'Fursat' starring Ishaan Khatter and Wamiqa Gabbi. Through the print ad, readers could scan a QR code that redirected them to the short film. The main aim of this campaign was to highlight the features of the newest iPhone model with a deep message of living in the moment and capturing it.

The latest iPhone 15 Plus campaign talked about its longer battery life, the one aspect that has troubled iPhone users for a long time.

Aspirational phone

“Apple is riding on the ‘premiumization’ trend where smartphone users are maturing and looking to buy their third or fourth smartphone, which is a premium flagship phone as smartphones have become an important part of our lives,” says tech Neil Shah.

Shah explains, “iPhone being one of the most aspirational smartphones with cutting edge features, higher brand equity and differentiated ecosystem prowess-from apps to iPad to Apple watch- is attracting those increasingly “smartphone-dependent” users to upgrade to the best.”

Further, easier access to financing, availability in broader channels, buyback schemes and greater resale value is making premium iPhones more and more accessible to mainstream users, Shah noted. He predicts over 12 million iPhones are likely to be shipped in the country in 2024. 

Prabhu Ram says, “The pandemic-induced work culture transformation and a growing aspirational workforce continue to steer enterprise adoption for Apple products. With significant headroom for growth, India presents a bright spot for Apple's future over the next decade.”