Apple, the multinational tech giant, has been making strides in the Indian market for a few years now. As per recent data, the company now produces almost 7 percent of all iPhone models in India. This is a significant achievement for Apple, as it has been working hard to make inroads into the world’s second-most populous country.
One of the reasons for Apple’s success in India is the company’s decision to manufacture some of its products in the country. In 2017, the Indian government announced a new policy called “Make in India” to encourage foreign companies to set up manufacturing plants in the country. Apple was one of the companies that took advantage of this policy and started producing some of its iPhone models in India.
Apple’s decision to manufacture iPhones in India has several benefits. First, it allows the company to avoid import duties and taxes, which can make the phones more expensive for consumers. Second, it enables Apple to meet local sourcing requirements that the Indian government has set for foreign companies. According to these rules, foreign companies must source at least 30 percent of their components locally if they want to sell their products in India.
The Indian government’s local sourcing requirements are part of its larger strategy to boost domestic manufacturing and reduce the country’s dependence on imports. Apple’s decision to manufacture iPhones in India has helped the company to comply with these rules and has also helped it to build stronger relationships with local suppliers.
Another factor that has contributed to Apple’s success in India is the company’s pricing strategy. Apple has traditionally been known for producing high-end products that are priced at a premium. However, in recent years, the company has started to adjust its pricing strategy to make its products more affordable for Indian consumers.
For example, in 2020, Apple launched the iPhone SE, which is a mid-range smartphone that is priced at around Rs. 39,900 (approximately $550). This is significantly cheaper than Apple’s high-end models, such as the iPhone 12, which can cost upwards of Rs. 1,00,000 (approximately $1,400). By offering a mid-range phone that is more affordable for Indian consumers, Apple has been able to attract a new segment of customers in the country.
Apple has also been working to improve its distribution network in India. In 2020, the company opened its first retail store in the country, which is located in Mumbai. This store showcases Apple’s entire range of products, including iPhones, iPads, Macs, and accessories. By opening this store, Apple has made it easier for Indian consumers to access its products, and it has also helped to raise the company’s profile in the country.
In conclusion, Apple’s success in India is a result of several factors, including its decision to manufacture iPhones in the country, its pricing strategy, and its distribution network. By producing iPhones locally, Apple has been able to avoid import duties and taxes, meet local sourcing requirements, and build stronger relationships with local suppliers. By adjusting its pricing strategy and offering more affordable products, Apple has been able to attract a new segment of customers in India. Finally, by improving its distribution network and opening its first retail store in the country, Apple has made it easier for Indian consumers to access its products and has raised the company’s profile in the country. With all these initiatives, Apple seems poised to continue its growth in the Indian market, and it will be interesting to see how the company evolves its strategy in the years to come.