A Large Population. Egypt is also an emerging economy with a significant community of more than 90 million people. Such a considerable market creates fertile ground for higher sales of the brand.
Statistics show that 26.3 million Egyptians use smartphones. Egypt’s population is highly composed of a young population; the younger demographic aged between 18 and 24 years makes up for about 24% of the total populace (“Number of Smartphone Users”). It is imperative to outline the fact that young people are a penchant for new technology such as smartphones. About 96.7% of youths use mobile phones, which gives the innovation executive education boot camp a good start since there is a high chance that the event will attract students with adequate knowledge and understanding of different concepts.
Increased growth– Egypt’s GDP continues to grow every year as a result of the International Monetary Fund (IMF) reforms. This year only, its GDP increased by 5.4%, a figure that give Apple Inc. enough reason to invest in the country.
Low Internet Usage– There is significantly lower internet usage in Egypt as internet penetration remains significantly low. It is estimated that Egyptians have been using the internet for a shorter time than other nationals (“GDP in Egypt.”). For instance, internet penetration in Egypt is at 50% compared to Tunisia’s 68%. It is also a distance behind UAE’s 99% internet penetration.
Limited Distribution Channels. Apple has three telecom distributors that operate across Egypt, namely Orange, Etisalat, and Vodafone. However, two main distributors limit its penetration into the deepest parts of the country.
A High Conversion Rate. Compared to its biggest competitor –Samsung, iPhone does a better job of bringing in new users from other android phones. Apple has managed to take in about 20% of new consumers from Android, while Samsung has attracted 7%. It means that Apple Inc. does a better job in Egypt in acquiring new customers.
Partnerships. The company has made solid alliances with mobile telecom operators. These Telecom companies include Etisalat, Vodafone, and Orange. Markedly, these companies offer mobile services while advancing Apple sales in Egypt. As a result, it can flood the market with the gadgets and consequently generate higher revenues and reduce marketing costs.
Stiff Competition from Other Smartphone Brands. There has been a sharp drop in the sales of the smartphone within a short period. Only this year, there was a notable decrease in iPhone sales given that sales declined by about 2% –from 13.7% in February to 10.7% in March (El-Din). Indeed, this drop represents a sharp decline in the phone’s popularity. As it stands, the iPhone continues to lose its market share in the face of other competitors, whereas Samsung continues to dominate followed by Huawei technologies.
Emergence of Newer and Better Technologies. The possibility of smartphones losing value fast is imminent due to the rapid introduction of new technologies that meet consumer needs. Consequently, the company has to keep abreast of changing times. Egyptian consumers easily shift to better and advanced technology.
Easier Market Penetration. It is much easier and cheaper to introduce newer phones into the Egyptian market. It is possible for Apple to lose its market share quickly. It is for this reason that Apple Inc. lost its second position in the market to Huawei, which possess a market share of 14.8% (El-Din). Newer companies such as Lenovo, Infinix, and Oppo are now taking up bigger market shares.
“GDP in Egypt.” Focus Economics, n. p., 2018, www.focus-economics.com/country-indicator/egypt/gdp. Accessed 24 September 2018.
Mawston, Neil. “Samsung J7 Pro Tops Egypt Smartphone Market.” Strategy Analytics, 26 Jun. 2018, www.strategyanalytics.com/strategy-analytics/blogs/devices/smartphone-model-tracker/smartphone-model-tracker/2018/06/26/samsung-j7-pro-tops-egypt-smartphone-market. Accessed 24 September 2018.
“Smartphone Users in Egypt from 2013-2019 (in Millions).” Statista, 2018, www.statista.com/statistics/467747/forecast-of-smartphone-users-in-egypt/. Accessed 24 September 2018.
“Number of Smartphone Users in Egypt 2013-2019 (in millions).” Statista, 2018, www.statista.com/statistics/467747/forecast-of-smartphone-users-in-egypt/. Accessed 24 September 2018.
El-Din, Mohamed. “Smartphone Market Share in May 2018.” Daily News Egypt, 2 Jun. 2018, dailynewsegypt.com/2018/06/02/smartphone-market-share-in-may-2018/. Accessed 24 September 2018.
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