Apple Overhauling International Sales to Focus More on India

[steve09090]

You are half correct. Apple manufacturing in India is to reduce cost and increase profit by sidestepping the tariffs. That doesn’t mean actual price decrease for consumers. Apple market share will not change, while their margins increases. That’s Tim Cook’s real goal.

That’s a cynical view, and not accurate.

There are many reasons why Apple have moved their iPhone manufacturing toward India. Some of it is political, some of it may be financial, but also their relationship with Taiwan, Human abuse history etc. They don’t want to stay with an authoritarian country if they had the choice (and they do) even though China often punishes companies who turn away from them. India is an emerging economy and Apple will be a part of that. Apple has been walking a tightrope with China and to suggest it’s all about margins, is incorrect.

Plus you have no idea what Tim Cooks goal is. I suggest it would be to be keep the company growing, and that’s a much bigger goal than to increase margins… Tim Cook Bashing. Macrumors favourite sport.

 

[dampfnudel]

Yes, this is the real picture. Many people reported they received their iPhones with, a "Made in India" label. Furthermore, it was also reported back in September 2022 that Apple is manufacturing the iPhone 14's in India.

Apple Begins Manufacturing iPhone 14 in India

Apple has begun manufacturing the iPhone 14 in India, the company has confirmed in a statement, with locally made models expected to be sold later...

www.macrumors.com

Apple wants to manufacture 25% of its iPhones in India, minister says

India's minister of commerce and industry said Apple is looking to make 25% of all iPhones in India, up from between 5%-7% currently.

www.cnbc.com

I thought only the iPhone 14 was being manufactured in India, not the 14 Pro and 14 Pro Max. I also read that Apple is having quality issues when it comes to increasing manufacturing capacity in India. I guess Apple realizes that it’s time to significantly reduce reliance on China in the event China invades Taiwan in a few years and the US/EU adopts a “if it’s made in China, it stays in China” policy in response.

 

[Mr. Dee]

I think that at least some of it is because, China is becoming much less of a factor.

Its not less of a factor, its still a very rich market, but part of it is that too:

- Its a mature market
- More middle class
- The maturity is likely leading to more folks keeping their devices longer, leading to less sales.
- China's ongoing issues with US and its friendship with Russia
- Its moving more inward, its dropping its open market approach and re-embracing more of the communists mistakes.

India, young people, new market, more moving into middle class and affluent status.
What that means is, this new generation are gonna be dropping those Android smartphones like flies for Apple iPhones and devices.
On top of iPhones being assembled there gives them a home advantage.
Its gonna take time, I would say in 10 years, India will be where China is or was in 2008. Large pockets of it is there right now, but scaling is the key.

I'm glad Apple is seeing the light, I want this to spread to Africa too.

 

[ZircoBen]

Apple needs to make a more competent and competitive iPhone SE to be able to sell to Indian customers.

Why would anyone pay the equivalent of $430 for a glorified iPhone 8 when Xiaomi puts out competitive and attractive Redmi phones for $100?

 

[lartola]

The Apple Eco System is far far superior. The integration between devices leaves Android in its wake. I know the Fandroids here will thumbs down me for saying it, but you know it’s true. 😂

Experience isn’t decided by tech specs.

And I know Apple fanboys say that Apple is far superior without eever having even touched an Android device.

 

[steve09090]

Apple needs to make a more competent and competitive iPhone SE to be able to sell to Indian customers.

Why would anyone pay the equivalent of $430 for a glorified iPhone 8 when Xiaomi puts out competitive and attractive Redmi phones for $100?

An Operating system that works seamlessly with other Apple products. Its about user experience, not who has the bigger… pixels.

 

[steve09090]

And I know Apple fanboys say that Apple is far superior without eever having even touched an Android device.

I’m only talking about the user experience and seamlessly working with other devices. As I am no longer shooting professionally and After a recent overseas holiday, I’m close to selling my DSLR and lenses to buy a pixel 7 Pro. But for the camera, portability and flexibility. But there is no way I’d get rid of my Apple Ecosystem experience. Something that is important to me.

I understand the technical side, but it’s not all about that, even though part of it is. Pixel offer an amazing camera, but Apple offer the better user experience… for me.

 

[lartola]

An Operating system that works seamlessly with other Apple products. Its about user experience, not who has the bigger… pixels.

Still, when someone simply doesn’t have the minimum $400+ to pay for an iphone, they’ll buy anything else they can afford. If Apple isn’t willing to sell anything cheaper than $400+ they just won’t ever increase their presence in the india market.

 

[steve09090]

Still, when someone simply doesn’t have the minimum $400+ to pay for an iphone, they’ll buy anything else they can afford. If Apple isn’t willing to sell anything cheaper than $400+ they just won’t ever increase their presence in the india market.

I can’t argue with that. That’s partly why the used iPhone market is so good. That used to happen a lot more in Australia (and I’m sure the U.S.) when the iPhone first took off. The same may happen in India. A second hand iPhone will be the go-to for a lot of people. I note that the market in these western countries is very much steered for new devices, but that wasn’t always the way.

But you’re absolutely right about the pricing and getting into a new phone market.

 

[v0lume4]

The Apple Eco System is far far superior. The integration between devices leaves Android in its wake. I know the Fandroids here will thumbs down me for saying it, but you know it’s true. 😂

Experience isn’t decided by tech specs.

I have an iPhone but use no Apple services (not even iCloud for photos). I also have a Windows computer.

Most iPhone users have a Windows computer. It’s kind of a funny fact that is often forgotten. So I don’t think the ecosystem is a big selling point for the average consumer per se.

 

[goobot]

I have an iPhone but use no Apple services (not even iCloud for photos). I also have a Windows computer.

Most iPhone users have a Windows computer. It’s kind of a funny fact that is often forgotten. So I don’t think the ecosystem is a big selling point for the average consumer per se.

You can install iCloud on windows computers for a long time now

 

[v0lume4]

You can install iCloud on windows computers for a long time now

Sure. But that’s just for files right? I may as well install Dropbox (which is what I use, FWIW).

iCloud on Windows hardly creates the “ecosystem” that the other guy was talking about. That would be iMessage, AirDrop, FaceTime, call forwarding, etc.

 

[goobot]

Sure. But that’s just for files right? I may as well install Dropbox (which is what I use, FWIW).

iCloud on Windows hardly creates the “ecosystem” that the other guy was talking about. That would be iMessage, AirDrop, FaceTime, call forwarding, etc.

I believe it’s files and photos, but yea I get what you’re saying

 

[v0lume4]

China has basically been saying they are going to attack Taiwan in a few years and when that happens there will be zero iPhone production happening in China. Apple wants to avoid that. It’s also why the USA and apple and many other companies are pushing for those fabs in the us because when it happens expect chip shortages too because Taiwan won’t be able to deliver

I genuinely have no idea what would happen if Taiwan for got attacked or invaded with TSMC being over there. It would not be good.

 

[kaycrystal626]

Great, now people make complaints about India instead of China!

 

[zombierunner]

About time. Make in India and sell at reduced prices.

 

[MisterK]

I'm not sure they can do it. Indians are uniquely culturally suited for the Android/Samsung market. Their type of tech savviness means they'll pick customization and hardware choice over Apple's monolith; the huge diaspora usingWhatsApp or WeChat (making iMessage a non-starter for lock-in), the larger less wealthy population with cheaper Android options. Apple's service premium won't work with such a huge backstreet repair network used to doing things on the cheap. Among the billion people, there are some who are going to find Apple to be aspirational but Samsung/Android is a more natural cultural fit.

 

[MisterK]

Almost all the comments are talking about manufacturing when the article is clearly about sales. Please read. They want to sell more Indians iPhones. Not make more iPhones in India. (At least this story)

 

[ian87w]

Apple needs to make a more competent and competitive iPhone SE to be able to sell to Indian customers.

Why would anyone pay the equivalent of $430 for a glorified iPhone 8 when Xiaomi puts out competitive and attractive Redmi phones for $100?

Apple as a brand does not even look at Xiaomi. Apple already has a much more valuable brand than any Chinese OEMs. People will be willing to save up and pay $1k for an iphone. Those people with Xiaomi phones will buy an iPhone once they can afford to. That’s Apple’s long game. Apple will let the Chinese duke it out at the low end.

 

[zakarhino]

Because of China's limited for the moment support of Russia against Ukraine, many companies are moving away from their reliance on the Chinese market and Chinese manufacturing. It's not an instant transition, but it is one they are willing to make. Corporations just don't trust China or Russia anymore.

The reason "we don't trust China or Russia anymore" is that they're some of the only viable independent competitors to us and they get in the way of us dominating the entire world economic system. Russia for energy and China for manufacturing. We never 'trusted' them, we went to them because we wanted to make short term monetary gains over long term industrial gains. This was a huge mistake and the consequences of that mistake are catching up to us now.

Any transitions away from China and Russia are to do with the falling rate of profit, they have absolutely nothing to do with wars in Ukraine or """spy balloons"""

 

[ian87w]

I'm not sure they can do it. Indians are uniquely culturally suited for the Android/Samsung market. Their type of tech savviness means they'll pick customization and hardware choice over Apple's monolith; the huge diaspora usingWhatsApp or WeChat (making iMessage a non-starter for lock-in), the larger less wealthy population with cheaper Android options. Apple's service premium won't work with such a huge backstreet repair network used to doing things on the cheap. Among the billion people, there are some who are going to find Apple to be aspirational but Samsung/Android is a more natural cultural fit.

You’re making the assumption that Apple is after market share. Apple is after higher margin. Despite Android having majority of market share, a bulk of the profit in smartphone market goes to Apple, and Apple is perfectly happy with that. Moving production to India is mainly to reduce imposed tariffs, aka to increase margin for Apple.

 

[SteveJUAE]

I'm not sure they can do it. Indians are uniquely culturally suited for the Android/Samsung market. Their type of tech savviness means they'll pick customization and hardware choice over Apple's monolith; the huge diaspora usingWhatsApp or WeChat (making iMessage a non-starter for lock-in), the larger less wealthy population with cheaper Android options. Apple's service premium won't work with such a huge backstreet repair network used to doing things on the cheap. Among the billion people, there are some who are going to find Apple to be aspirational but Samsung/Android is a more natural cultural fit.

This is spot on "Cultural Fit"

Indians are generally very canny and Rupee wise regardless of financial status

It's not just about cheaper iPhones it is the actual convenience and running costs of ownership

The very thing that many in the west like about the Apple ECO and walled garden would simply be viewed as restrictive practises that cost Rupee's

The subscription based model and stinting of features to encourage multiple device purchase is not a good fit and goes against the grain for most

The flexibility of Android allowing multi device support, file sharing , sideloading and customisation for the +100 languages spoken will keep many in the Android camp

The little guy in the backstreet will not only do your repairs but he will also load up your phone with the latest goodies for the vast majority who do not have data or even access to WiFi at home

Cheap androids are also cheap to run where cheaper Iphones are not, when your counting Rupees and not $'s or $10's like the west

 

[steve09090]

Sure. But that’s just for files right? I may as well install Dropbox (which is what I use, FWIW).

iCloud on Windows hardly creates the “ecosystem” that the other guy was talking about. That would be iMessage, AirDrop, FaceTime, call forwarding, etc.

It's also being able to copy from one device, and instantly paste on another (I use that all the time). It's about having a pair of Powerbeat Pros, and instantly changing from my iPad to my phone or laptop. I also have the Sony XM4's (which are supposed to be awesome but aren't) but the Bluetooth connection is so clunky compared to the Apple experience with the Beats. It's those things that make me appreciate what I have versus what you have. Everything seems to be seamless.

I get that not everyone wants or is able to move to Apple everything, but when you're in that ecosystem, everything else just looks inferior from my perspective. I'm not saying it IS inferior because I know other hardware can be awesome, but it's just from the outside looking in.

 

[svish]

Great to hear about this. India might become a huge market for Apple in the future.

 

[Solomani]

I think that at least some of it is because, China is becoming much less of a factor.

China = The First Basket

India = The Second Basket


Don't put all your eggs in one basket.