Apple Has After Sales Service Issue In The World's Second Largest Smartphone Market
Posted: Sep 19, 2019
Apple is a recognized premium brand around the globe, Apple is also renowned for its top-notch customer service, However, it seems like it is another story in India. For your information, Apple doesn't own any service centers or retail stores in India. Instead, they work with independent service companies called Apple Authorized Service Providers. These independent companies are authorized to work on any Apple devices without voiding the warranty, however, those companies are free to set their own policies in regards to pricing, Service charges and availability.
Apple Rely on Third-party Retailers and Service Providers in India
India became the world's second-largest smartphone market not long ago, and the main reason Apple does not operate any stores In India is mainly due to the requirements for foreign companies to source at least 30% of their manufacturing materials from India before setting up company-owned stores, this meant that Apple has had to rely on third-party retailers and service providers. As a result, Apple customers can only opt for third-party service providers or Apple resellers which are operated independently for their iPhones repairs.
Higher Customers Expectation
Customers in India pay a hefty price for their Apple devices due to import taxes. For example, a $1,000 iPhone Xs in the US Costs about $1,400 in India. Due to its premium price tag, the expectations in terms of service delivery are Understandably higher in India. However, customers in India say these service providers often provide services that below their expectation. In a survey by Mumbai business analysis firm, RedQuanta, Apple scored among the lowest in the industry for their willingness to recommend a company's products or services to others. By contrast, Samsung and Chinese smartphone brand Xiaomi, the top two companies that sell a majority of smartphones in India, top RedQuanta’s survey for customer satisfaction and after-sales service in India.
Out-of-warranty iPhone Devices
Besides, Out-of-warranty products come with the possibility of hefty repairs cost. Multiple authorized service providers Revealed that they were free to set their own policies about repairs and servicing for out-of-warranty products. They can set their own markup on spare parts and charge diagnostic fees. Many felt that their service is very inconsistent and People never know what they’re going to get. As a result, frustrating experience and interactions at these service centers make Apple's Indian customers particularly dissatisfied, said a RedQuanta spokesperson.
As the market moves toward cheaper alternatives, sales of Apple smartphones in India in 2018 fell by nearly 50% from the previous year, according to estimates from Counterpoint Research. Fewer Indians are buying iPhone where they just has merely 1% of the market share despite Apple acknowledged there are huge opportunities in India. Apple manufactured most of it products and parts in China. After a year of a trade war between the US and China, there is a glimpse of possibility for Apple to migrate its manufacturing sourcing to India, and the subsequent arrival of Apple stores in the country, too, may help the company resolve their current issues.
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