Why Apple has a problem in the Brazilian market?

Los Angeles Times website shares with us considerations about why tech giants managed to snatch a modest slice of the smartphone market in Brazil.

A guy from one Brazilian town recently decided to go on vacation in Orlando (Florida, USA). Tulio Avellar (Tulio Avellar) - so his name - decided to visit such famous and popular tourist places like Walt Disney World, Universal Studios, and... Apple Store.

Why was it necessary to go to Brazil for the sake of buying the phone? The answer lies in the numbers. 23-year-old Brazilian has bought the iPhone 4S for $ 570 - about twice cheaper than at home. This is normal, when the Brazilians are going to visit the United States, and their relatives and friends once raid requests to bring some "apple" gadget. "Just does not make sense to buy the iPhone in Brazil", - complains Avellar. His case shows that Apple still is much work to be able to compete in the Brazilian market.

Due to the huge import taxes on the price of the Apple phone is not available to all Brazilian consumers. The company is making efforts to ensure that it is possible to produce phones in Brazil, but was faced with a mass of obstacles. And although the country is one of the fastest growing smartphone market, and there is a high economic growth, Apple so still there is no retailer in Brazil.

It turns out that Apple owns less than 10% market share in Brazil. The situation is similar in other developing countries, including China, India and Russia, where we assume that it, will give the company-competitor Samsung.

Analysts are concerned. Apple now progress in the US and Europe slowed down, so the fate of the company depends on the success in luring consumers in developing countries. If the situation with Brazil has not yet been forced Apple to do something, then the company would be worth to clean up its act quickly.

"I do not know what Apple has a strategy here [in Brazil]," - says José Roberto de Souza Pinto (Jose Roberto de Souza Pinto), analyst in the telecommunications sector in Sao Paulo, - "but they will have to radically change it if they want to succeed in the Brazilian market. "

Brazil - a country with one of the largest economies in the world and a population of 193.9 million people. Over the last decade more than 40 million of them have moved out of poverty in a new, hard-working, loving to spend money the middle class, which is now more than half of the population.

As a consequence, the number of smartphone sales in Brazil began to grow. According to market research firm IDC, Brazil is the world's fifth-largest smartphone market. This year it is expected that it will be sold 23.9 million units. IDC forecasts are that by 2017 Brazil will jump to fourth place behind China, USA and India.

On this occasion, Tim Cook in early 2012 during the financial report said that among the most important emerging markets Brazil steps except China. "I think here we have a huge opportunity."

The company has already taken some steps in Brazil: Brazilian opened the iTunes store, hired for Brazilians monitoring of operations in Latin America, as well as cut down the price of the iPhone 4 and 4S 25% and 15% respectively. But for some reason, Apple still remains behind.

According to research firm Gartner, Samsung sold 42.4% of all smartphones in Brazil last year, after it comes LG with 13.3% and Apple with 9.1%, which is in the back breathe Nokia and Motorola.

Cook has repeatedly said that Apple does not think about what it takes market share - it just cares about creating great products. Nevertheless it, he acknowledges that the company needs to find ways to make their products more attractive for emerging markets.