Apple Overhauling International Sales to Focus More on India

[Steve121178]

You basically have to bribe people to do anything in India. How is Apple supposed to do anything with that kind of corruption?

It's not that bad. It's getting India to complete manufacturing to the standard Apple demands which will be the problem, especially as volumes increase. Anyone that's done business in India knows they like to take the quick route to complete any job, so Apple will be keeping a very close eye on things to make sure standards remain high.

 

[Queen6]

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

Simpler, if Apple opts not to invest in India the government will prohibit sales of Apple's products, that's been stated. Kind of like a blackmail scenario, equally Apple is about making $ and it will find a way to do so one way or the other...

China will always be a factor as the QC is solid as are the production numbers. Why people sweat on this I have no idea. As long as the product serves purpose and is reliable who cares where it's produced...

Q-6

 

[avz]

India is not to be trusted and Apple should look elsewhere. If a country can not condemn what is a clear violation of international law because they want cheap oil, we shouldn't be moving production there.

If you recently watched the Fed's Jerome Powell "answering" questions before the House committee you would have seen why it is difficult to move production back to the US. There were very interesting questions dealing with the fact that the Bretton Woods system has more negatives than positives at this stage which makes investing in real sector not profitable unless it is dropped entirely or reduced to the size of the AUKUS.

US can choose to continue to support Bretton Woods system in its current form at the expense of the drop in living standards of its citizens which will likely to happen when the interest rates go up to 10-20%.

 

[bousozoku]

Not anymore. The Indonesian government implemented IMEI whitelist. So only phones sold officially in Indonesia will be able to use local SIM. Phones bought overseas will have to be registered and we will have to pay import tariffs. Plus, the local authorized distributor will refuse any repair or warranty claim of those foreign units.

That almost sounds like Brazil. Apple should treat every country as its home country.

 

[Silverstring]

Hughes Asseman is an amazing name.

 

[hwertz]

Look at LV, Burberry, BMW, etc. They all have official presence in India. Apple has clear brand positioning, and it’s on the luxury side. Apple doesn’t need to make $100 phone, the same as BMW doesn’t need to make a $16k car to compete with, let’s say, Kia.

Like it or not, Apple has become a brand that people aspire to. Emerging markets like India have a large group of people that are transitioning to middle class, and they have much more disposable income.

You actually should be happy that Apple is interested in the Indian market. This means as a whole, India is getting better than before, to the point that Apple sees it as a potential market for growth. That’s a good thing.

This. I personally find Apple products comically overpriced (I personally am not into luxury products at all). But a lot of people are into them. And there's a billion people in India, even if the percentage that can afford Apple products is low the absolute number is high (and with more people becoming middle class, the numbers who can afford one, at least on financing as is commonly done here, will be rapidly increasing as well.)

It sounds to me like Apple probably had North America, South America, Europe, Asia, Australia markets and then "miscellaneous" -- "India, the Middle East, the Mediterranean, East Europe, and Africa" just sounds like they stuck everything else together into one market. Having apps, music, and video stores that focus on India within India will certainly get them more sales and interest in the devices than if they have stores that just show everything from the "miscellaneous" region.

 

[Bodhitree]

As Apple says, their goal isn't to make the most affordable or the most sought-after products. Their goal is to make "the best" products. And for now, they've been succeeding with that because people will indeed pay more for a better product. How much more? Well, the threshold for what's too much is vastly different for each country and person.

I’m not sure if I entirely agree. Apple’s profit margins are substantial, but they make better hardware and software for their flagship products, and then provide an array of cheaper products to capture more of the market. They are a premium brand, without being a luxury brand. Ultimately the value of their products is based on hardware and software quality which is noticeable in touch and feel and actual use.

But in some of their various markets they do price according to their competitors and according to the value they provide. Apple Music costs about the same as Spotify. Apple TV+ is cheaper than Netflix. Apple Fitness+ is cheaper than Peloton. And they sometimes bring down the price of hardware to suit the market, such as with the new Apple TV boxes.

Apple has done really well to capture the high-end smartphone market, where they sell way more units than for example the Samsung Galaxy S-series, their nearest competitor. It accounts for a sizeable portion of their profits. Obviously they want to maximise revenue and profits there, without driving people away, but instead maybe moving some customers to the SE product.

The Mac and the iPad Pro are other areas where people are noticing the attempt to maximise profits by creating more expensive classes of device. The Mac Studio and Studio Display replacing the 27” iMac has meant a big screen Apple product has become truly more a professional’s tool where the device pays for itself rather than an enthusiast’s machine.

 

[East India Company]

I definitely wouldn’t want my iPhone to be made in India. I cannot say why as MR will then apply censorship.

 

[MacCurry]

I definitely wouldn’t want my iPhone to be made in India. I cannot say why as MR will then apply censorship.

You don’t have to buy. Right now, >90% of iPhones are made in China. APPL is diversifying 25% to India by 2025, and if production quality holds up, then after 2027 some 50% will be made in India. That too may not happen if AAPL profit margins are hit. If massive automation happens by the end of the decaded and smart phones design becomes even more commoditized, I don’t see why it won’t mostly come back to production in the US.

 

[_Spinn_]

This makes sense. Apple is continuing to move away from China.

 

[RalfTheDog]

Simpler, if Apple opts not to invest in India the government will prohibit sales of Apple's products, that's been stated. Kind of like a blackmail scenario, equally Apple is about making $ and it will find a way to do so one way or the other...

China will always be a factor as the QC is solid as are the production numbers. Why people sweat on this I have no idea. As long as the product serves purpose and is reliable who cares where it's produced...

Q-6

The problem is, some people don't like the fact that China is supporting Russia in Ukraine. They, including myself, believe that we should never support a country that supports Russia.

 

[Saurya]

I don’t live in India so perhaps someone can chime in with an on-the-ground report of the market there.

More affordable product options? Apple’s “affordable” iPhone is the SE which is inferior in nearly every regard to a handset at that same price point from another manufacturer.

My questions: How much weight does the Apple brand carry in India? Do the consumers there care more about name/image and iOS, or value? Because if the answer is the latter, Apple has no ground to realistically gain in that market.

Before saying ridiculous things about India know some facts.She has 900 million internet and smartphone users so if only 10% use iphone then ios market will be 90 million. Thats more then entire smartphone users of Canada and UK. We all know you people have pain in your kidneys because i phones are manufactured in India. Jealous buy iphones made in China. Apple will always give you options