![]() ![]() In January, India's commerce minister told CNBC that Apple was manufacturing its latest iPhone 14 in the country and had a goal to produce as many as 25% of all iPhones in the country.Īpple's primary manufacturing partner, Foxconn, which oversees a large portion of the assembly of new iPhones in China, is expanding in India, too, reportedly building a $700 million plant for iPhone parts in Bangalore. India could end up being a big winner as Apple looks for non-Chinese manufacturing options. Nearly all iPhones are currently assembled in China, which has caused some problems over the past five years, starting with trade tensions and possible tariffs during the Trump administration, and extending to more recent supply chain disruptions caused by Covid and China's Covid policies, which led to sales shortfalls. The second part of the strategy is to build Apple products in the country, a massive project that requires not only Apple's attention, but also efforts from its manufacturing partners and local and national governments. The two physical Apple stores opening this week and the online Apple store which launched in the country in 2020 are also expected to boost sales. "There's been a lot done from financing options and trade-ins to make products more affordable and give people more options to buy," Cook said. Cook mentioned these strategies when he was asked about India in February. One way for Apple to address this gap is by allowing customers to pay for their phones in installments, or giving them a discount for trading in an older device. ![]() Apple's entry level phone - the iPhone SE - retails for $429 in the U.S. Industry analyst IDC estimated in February that the average selling price of a smartphone in India is $224, which had increased 18% in 2022. Most phones sold in India are priced below even the least-expensive new Apple iPhone. Android had over 95% of market share in the country, according to Statcounter. Indians who buy iPhones are much more likely to be "switchers" than customers elsewhere because Android dominates the Indian market, led by Samsung and several Chinese brands. "It's really that natural wealth effect over time that's going to help Apple really penetrate and see significantly higher revenue potential in India." "As you look at India today, it's very similar to China 15 or 20 years ago," Zino said. The bulk of smartphone sales in both countries use versions of the Android operating system created by Google. There's room for Apple to grow on the subcontinent: Apple has less than 5% of the smartphone market share in India, versus about 18% in China, said Angelo Zino, senior analyst at CFRA research. At the same time, India's government is eager to work closely with Apple to make it possible to manufacture in the country, CNBC reported. India could echo the role China has played in Apple's business for the last 15 years: A massive market with an expanding middle class to power sales growth, and potentially a home base for the production of millions of Apple devices.Īnalysts say that India's large population and maturing economy is ideally situated for Apple to make inroads by increasing marketing efforts and offering retail in the country. Personal Loans for 670 Credit Score or Lower ![]() Personal Loans for 580 Credit Score or Lower ![]() Best Debt Consolidation Loans for Bad Credit ![]()
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