Skip to main content

Apple In India: New Market, But Old Challenges


The news that Apple is to start manufacturing iPhones in India was 'announced' by the Karnataka state government and looks to be the next step in Tim Cook's 'success without innovation' plan for Apple.

Globally the expectation is that India will be the next big growth market. Doing to China in the next ten years what China has been doing to Japan over the last ten years. Growing prosperity is creating more Indian consumers with more disposable income. In the same way that they raced to grab a slice of the pie when China was growing, so Western companies will race to profit from Indian growth.

For Apple that's going to be important. After years of growth in China, iPhone sales have started contracting. There's a limited market for premium smartphones in China and even though Apple owns all of it, the opportunity for further growth is passing.

India is right at the start of its smartphone cycle. A limited number of phones sell, mainly from manufacturers with local production facilities. The Made In India program has been successful in that respect at least.

By joining the ranks of local manufacturers Apple has given itself a seat at the table when the Indian market blooms. As in China it will inevitably suck up all or almost all premium smart phone sales and Tim Cook will be able to show growth in sales of Apple's most important product line.

Outside of America and Japan iPhone sales growth is negative and opening new markets is becoming more and more important to keeping sales and stock price moving in the right direction.

Comments

Popular posts from this blog

F1: Robert Kubica Impresses In Renault Test Run

The car may be old but its the performance of the driver that's the story here. Robert Kubica returned to F1, after a fashion, earlier this week with an extensive test run in a 2012 Lotus Renault F1 car at Valencia.
The age of the car and the circuit were likely determined by F1's current rules which ban testing, but the reason for Kubica being in the car is far more interesting. Considered by many to be a potential World Champion and certainly one of the fastest drivers of his generation, Kubica's F1 career seemed to be over after a 2011 crash whilst driving in the Rally of Andora. His Skoda Fabia was penetrated by a guardrail in the high speed accident partially severing his right arm.
Up until last year Kubica has been competing in rallying, with the expectation that the limited movement in his repaired arm would prohibit a return to single seater racing.
So this week's test is both interesting and confusing. Interesting because Kubica completed 115 laps of the ret…

Panos Panay's Defence Of Microsoft Surface Hardware Sounds Eerily Familiar

This weekend I went out with my ten year old daughter to select a laptop for her school year beginning in January. The schools requirements are quite specific, requiring a Windows 10 device, with a preference for a touchscreen and a stylus. She chose a Surface Pro, after trying a large number of different options. Having seen the way I use my own Surface Pro - and tried it herself there was only ever going to be two options - and the other was a Surface Laptop.
I tell you this so that you understand I am a buyer of Microsoft's products through choice, not compulsion. I'm on my third Surface device now. 
So when Panos Panay dismissed reports of the death of the Surface hardware line, I was very interested to see exactly how strong these denials were. Especially how they reflect what has gone before. To whit: Windows 10 Mobile.
Panay claimed that Microsoft is in hardware for the long haul. Almost exactly mirroring the words of Terry Myerson, when he claimed Windows Mobile was g…

WhartonBrooks Indiegogo Windows 10 Mobile Even More Doomed To Failure Than Usual

WhartonBrooks is currently crowd-funding its latest Windows Mobile smartphone on Indiegogo. If crowdfunding isn't already a bad enough idea, a company trying to crowdfund a Windows Mobile device should be warning enough for you.
Not that anyone seems to be taking the project too seriously. With a few weeks left to run the campaign has managed to ensnare just 2% of its $1.1m target.
If you want a better indication of how few Window Mobile loyalists remain I doubt there is one. Of 3,900 Windows Phone enthusiasts Wharton Brooks was seeking for its new phone, it has managed to entice just 50.
Windows for Phones is dead, even if the corpse hasn't stopped twitching yet.