“The time when Apple viewed India as too small and under-developed to bother with is over,” James Crabtree writes for the Financial Times. “Facing worries over a sales slowdown in China, Tim Cook, chief executive, sounded positively bubbly during January’s earnings call as he described the company’s Indian plans as ‘incredibly exciting.'”
“India’s smartphone market is expanding at a cracking pace but with 250m owners out of a 1.2bn population, there is still plenty of room for growth. High-speed 4G mobile internet is gradually arriving. Apple is also preparing to open retail stores in the country,” Crabtree writes. “More important, most Indian smartphone owners still have basic, cheap models, with iPhones making up just a tiny fraction of sales, suggesting many will eventually upgrade.”
“It is tempting, therefore, to see India as Apple’s next big thing. Tempting, but wrong,” Crabtree writes. “Apple must ultimately grapple with a more fundamental dilemma that has vexed western brands from carmaker Volkswagen to retailer Marks and Spencer: its products are more expensive than what most Indian consumers are willing to pay.”
Read more in the full article here.
MacDailyNews Take: As we wrote yesterday:
It’ll be good for Apple to control the full retail experience in India. Third party reseller can only offer so much. As always, expect Apple to continue selling premium products at premium prices to premium customers, regardless of the country in which they are operating.
Apple on course for approval to open India retail stores, source says – February 8, 2016
Apple CEO Cook’s focus on India is insanely great – January 27, 2016
Apple seeks to open their first retail stores in India – January 21, 2016