India is the third biggest smartphone market in the world and 97% of India’s mobile phone users are Android based and price conscious.
According to a report, Apple was able to ship only 8 lac smartphones in India and has led to a decline in the overall sales in the last quarters. Even though the total market share has been bite-sized (less than 1.5%), the fat margins ensued total revenues that mounted to a whopping INR 9997 crores for 2016. This outlines the huge potential of India as a smartphone market, despite the small market share.
The news is abuzz that Apple plans to start production locally - at a factory based out of Bangalore, India. In the first phase, it will start assembling iPhones through a facility based out of Peenya, an industrial area in Bangalore by April 2017. Locally manufactured phones will cut import duty to the extent of 12.5% and will help the company price the phones competitively. The next set of iPhones could offer a tad relief to the pocket of Indian consumers.
India has been on the radar for Apple’s Tim Cook. In May 2016, Tim Cook spent a week in India to gauge market potential and research. In line with his ‘Make-In-India’ initiative, Prime Minister Modi had also prompted Tim Cook to set up operations in India on this visit.
Earlier in December, Apple had put published job openings on its portal for its Bangalore-based unit thus validating the news.
Apple seems ambitious with its India expansion plan and hopes for it to become a major market and as good as the China market eventually.
What’s in it for Apple? Higher revenue potential.
What’s in it for Indian consumer? A cheaper iPhone.
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