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Apple Has A Strategy For India

India is a big deal for smartphone manufacturers. It's a growing market which has low smartphone penetration, pent up demand and growing wealth.

Exactly the sort of conditions which Apple thrives in.

So why is the company selling so few phones in India? It's most recent quarter amounted to just 3% of the smartphone market in the country.

That's likely to grow as Apple starts manufacturing iPhones in India, which gets or around some import duties, allowing the phone's to be more affordable.

Even so, the current iPhone range amounts to a huge investment for most Indians. Too big for many who are just beginning to taste affluence.

Apple's plan to win market share is there pronged. Keep the current range available through official Apple sources, maintaining price and, as a result, desirability and keeping Apple an appraisal brand.

Secondly, encourage third party retailers to sell older phones at cheaper prices. Bringing an iPhone purchase into the realms of the possible for many more customers. An iPhone 5S sells for less than £200, a step discount on the entry level iPhone SE.

Finally keep agitating with the Indian government to be allowed to sell refurbished iPhones into the Indian market, further lowering the barrier to iPhone ownership and bringing customers into the Apple ecosystem much sooner than would otherwise be possible.

Whilst Apple is not greatly concerned with market share, it needs to keep growing its customer base to satisfy shareholders and keep the wheels turning for services and app developers.

India is likely to vie with China as the world's largest consumer market within the next decade. Early exposure to Indian consumers is an important long term strategy and Apple seems to have nailed that down.


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