Apple’s game plan is to turn India into the next China, not only in terms of sales but also manufacturing and exports
As sales of Apple’s flagship iPhone slow globally, the company’s bullishness that India will emerge as a major driver of volumes is causing an acceleration in its investments here.
In the last quarter alone, Apple’s iOS app accelerator, as well as its manufacturing unit run by contract manufacturer Wistron in Bengaluru, went online. These investments are in addition to the company’s overall investment in growing its sales channel and marketing more to consumers in India.
“We began to produce the iPhone SE there during the quzjbzarter, and we’re really happy with how that’s going. And so we’re bringing all of our energies to bear there. I see a lot of similarities to where China was several years ago,” said, CEO of Apple, in a call with investors on Tuesday.
Apple’s game plan is to turn India into the next China, not only in terms of sales but also manufacturing and exports. The company has been engaged with the Indian government to receive sops for setting up full fledged manufacturing and not just iPhone assembly for over a year now.
The going is a bit slow due to India’s unwillingness to grant subsidies specific to Apple and the former is looking at a policy that can attract all smartphone makers to manufacture
their devices here.
: While sales of the iPhone have been growing at a blistering pace in India, analysts said the growth Apple is seeing is nothing out of the ordinary. With a base of just 2-3 per cent of India’s overall smartphone market, Apple still has a long way to go, especially in convincing Indians to buy its latest iPhone each year.
However, everyone seems to agree with Cook’s reading that the India market will provide a significant opportunity for Apple to sell millions of its high-end devices.
Apple has for long maintained that as network infrastructure in India gets better, more customers will begin to see the benefits of owning an iPhone. This combined with a young population that is aspirational by nature is what could turn India into Apple’s next China.