Despite cut-throat competition from the likes of Samsung and Xiaomi, Apple iPhones have managed to carve their niche in the largely budget-friendly smartphone market in India. Buoyed by the ever-increasing demand, the Cupertino-giant has started to look at India from a pair of new lenses.
Though China still remains Apple’s biggest iPhone assembly base and a massive overseas market, the tech giant is desperately craving to pierce into the Indian market to offset China’s setbacks, which have been compounding by every passing hour. In the wake of intense rivalry from local vendors and the government’s ban on the use of iPhones in state workplaces, Apple’s revenues have been on a downward trend in the country – dramatically.
Why India May Soon Become Apple’s Beloved China…
Couple that with the never-ending geopolitical tensions involving China, Apple had never seemed to be more eager to find a China-like market that could let it not just assemble billions of iPhones at a relatively low price point but also allow it to sell a large number of iPhones so that its cash cow continues to thrive.
But the burning question is, “Has India got enough to become Apple’s new China?” Well, the straightforward answer to this question is a big “Yes”.
Whether it’s the world’s youngest population (more than 50% of the population is below the age of 25 and over 65% of the population is below the age of 35), the more conducive smartphone market, or the incumbent Modi government’s push to double down the growth in the technology sphere, India seems to have all the boxes ticked off to emerge as a safe haven for businesses.
If there is anyone who doubts India’s potential to become Apple’s go-to destination, either that person is under the black spell of amblyopia or fighting hard to downplay India’s rise for political gain – by hook or by crook. Even those who view India as a mere budget-conscious market are perhaps still living in the age of the rocks or perhaps haven’t visited the country for ages.
Unlike China where rules are heavily designed in favor of local vendors and they never miss any chance to put a blanket ban on noted companies like Google and Apple, India never fails to show love and admire products that succeed in winning it over. Had it not been the case foreign products wouldn’t be ruling the roost.
Beyond love and a more business-friendly market, India has the reputation of producing the brains that drive the leading tech companies such as Google, Microsoft, Apple, and more. Notably, Indian tech brands have never been caught spying in other countries with the help of their products.
As per Bloomberg, Apple now produces a whopping 14% of its iPhones in India. To be more precise, roughly 1 in 7 iPhones produced by Apple are from India. Reportedly, the company has assembled a jaw-dropping $14 billion worth of iPhones in the world’s most populated country in fiscal 2024.
Although Apple currently assembles only standard models (iPhone 12 through iPhone 15), the full-fledged assembling of the Pro and the Pro Max models doesn’t seem to be a distant affair. The grand opening of the back-to-back stores in Mumbai and New Delhi last year is a sign of something big to come to the largest democracy in the world.
As to how long will it take for Apple to go full throttle in India, the Cupertino giant is already on the charge to slowly throttle its heavy reliance on China and switch the loyalty by giving the much-needed impetus to the basics. Having ramped up the production (while Foxconn assembled nearly 67%, Pegatron and Wistron assembled 17% and Wistron 16% of iPhones in the country in the fiscal year ending March 2024) and set up massive retail stores in the two biggest cities, Apple will only go from strength to strength from here on.
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