Apple has been working on bringing manufacturing of its iPhones to India and according to a recent report by the Wall Street Journal, the company has now started to make handsets in the country.
Apple sees India as the next big market for its iPhones and the company has to make handsets there in order to comply with rules about selling products in the country, as 30 percent of them have to be made locally.
Manufacturing Strategy and Compliance
Apple is manufacturing the iPhone SE in India, the handsets are being manufactured by Taiwan’s Wistron for Apple in India. This move is not just about compliance with local regulations but also a strategic decision to tap into one of the fastest-growing smartphone markets in the world. By manufacturing locally, Apple can potentially reduce costs associated with import duties and logistics, making their products more competitively priced in the Indian market.
India’s smartphone market is dominated by Chinese manufacturers and the average handset costs $155 in the country, Apple’s iPhone SE retails for $399. This price difference highlights the challenge Apple faces in making its premium products appealing to a price-sensitive market. However, by manufacturing locally, Apple can explore ways to offer more competitive pricing or introduce financing options to make their phones more accessible to a broader audience.
Market Potential and Future Prospects
Apple is looking to make its iPhones more popular in India and gain a larger share of the smartphone market than they have at the moment. The Indian market is not only vast but also diverse, with a growing middle class that aspires to own premium products. By establishing a manufacturing base in India, Apple is positioning itself to better understand and cater to local consumer preferences.
Moreover, local manufacturing can lead to faster product launches and better after-sales service, which are crucial factors in building brand loyalty. Apple’s decision to start with the iPhone SE, a more affordable model compared to its flagship devices, indicates a strategic approach to gradually build its presence in the market.
In addition to the iPhone SE, there are speculations that Apple might expand its manufacturing to other models in the future. This could include newer models or even region-specific variants that cater to the unique needs of Indian consumers. For instance, offering dual SIM capabilities, which is a popular feature in India, could be a game-changer for Apple.
Furthermore, Apple’s investment in India goes beyond just manufacturing. The company has also been focusing on expanding its retail presence and online sales channels. With the opening of Apple Stores and partnerships with local retailers, Apple aims to provide a seamless shopping experience for its customers. The company is also investing in local app development and services, which can enhance the overall ecosystem for Indian users.
In conclusion, Apple’s move to manufacture iPhones in India is a significant step towards capturing a larger share of the Indian smartphone market. By complying with local regulations, reducing costs, and understanding consumer preferences, Apple is well-positioned to make its mark in one of the world’s most promising markets. The success of this initiative could serve as a model for other global companies looking to expand their footprint in emerging markets.
Source , The Verge
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