Apple-India Sales head Sanjay Kaul quits as iPhone-sales struggle
What's the story
Close on the heels of Apple reporting its slowest growth in six years in India, Apple India's Sales Head Sanjay Kaul has resigned from the post. The Cupertino tech-giant has reportedly appointed Apple veteran Michel Coulomb to replace Kaul and lead India sales. Kaul, who was appointed as the sales head in May'16, would be moving out with immediate effect claimed reports. Here's more!
Coulomb
Coulomb has been with Apple for over 15 years
Michel Coulomb has been working with Apple for more than 15 years now. He earlier led Apple's operations in the Middle East, Turkey, and Africa, before taking charge as Apple's Chief of South Asia in Singapore last year. Apple is yet to release an official statement regarding Coulomb's appointment as the top sales executive in India, where its sales have been struggling lately.
Sales
Coulomb expected to improve Apple sales in India
Coulomb's vast experience and knowledge from all the other markets are expected to benefit India operations as well as help him tackle the obstacles in the country. Obstacles include Apple recently recording its worst quarter in India in nearly six years. In FY17, Apple India's sales reached Rs. 11,619cr ($1.8bn), a rise of 17%, which is much lower than Apple's average 40% growth.
Factors
Impact of demonetization on iPhone sales
Apple's slow-paced growth is attributed to a decrease in demand for Apple's latest iPhones, and also the government's decision to demonetize Rs. 500 and Rs. 1,000 notes in Nov'16. The currency ban had a significant impact on sales of Apple and its rivals. Sales suffered post-demonetization as consumer spending sharply declined as most people stayed away from purchasing high-value goods like electronics, including smartphones.
Import duty
Import duties hiked in India; iPhone prices increased
Kaul's resignation also comes at a time when Apple has hiked the prices of all its iPhone models, except the iPhone SE, by an average of 3.5%. The prices of the iPhone range have gone up after the Centre increased the import duties on mobile phones. Basic Customs Duty (BCD) on the handsets imported into the country rose from 10% to 15%.
Quote
IDC India Senior Analyst on Apple sales, Kaul's resignation
Senior Analyst at International Data Corporation (IDC) India, Jaipal Singh, said: "Apple has been under pressure since iPhone X launch as supply issues hampered its sales in India. Although we can't link Kaul's resignation with this yet, but yes, the company have had sluggish sales."