Apple will shortly release the Apple iPhone 15 on September 12th. The markets of a Dynamic India are critical to Apple’s successful growth. A Dynamic India needs Apple’s success in global and domestic markets. The shared needs link success in India to Apple’s continued success.
The regular cycle of Apple iPhone introductions gets buyers excited. Apple benefits from premium pricing of iPhones as a global product. Telecommunication carriers depend on excitement from new iPhones to lure customers who won’t switch carriers. The high prices for iPhones supports an eco-system of accessories, add-on attachments, and products extending Apple’s brand. Now Apple sees Challenging Times.
The tiny marketshare for Apple in India has been the result of many factors. There were no “Make in India” iPhones until the new contract manufacturing plants for Apple were opened. With the iPhone 15 smartphones the assembly will occur simultaneously in China and India. The Indian Government has been strongly encouraging iPhone assembly (and the resulting employment gains) in India luring production from China (and affecting Vietnam). The ‘political optics’ of successfully building Apple manufacturing-gains have strong Government support.
The highest value component semiconductor chips are not yet manufactured in India. Apple’s supply chains are still global for all iPhone products. Additional external investment in iPhone components localized in India will be dependent on Apple and Government supports in the mid-term. Increasing costs in China provide an opening for a Dynamic India's young labor force. India offers opportunities for Apple and Apple suppliers for growth.
Growth in Indian exports of finished iPhone units is viewed as critical by the Government and Apple. The new generation of iPhone production is a key milestone in export growth from initial successes. Apple’s export successes will depend on the successes of the Indian low-cost production and domestic marketplace to offset logistical and supply chain advantages in China. The opportunities for Indian suppliers, and for the Government, to optimize and improve Apple's fortunes will also benefit other "Make in India" exporters.
Apple’s sales revenues are high as iPhone prices are premiums in the smartphone market. Unit sales on a global basis still is held by Samsung. Chinese competitors have seen Apple’s growth in China. Apple now sells more iPhones in China than in the USA market with EU and Japanese sales seeing less unit growth for competitors. The very small volumes in India give Apple hope for another high growth market.
A Dynamic India can see a surge in new apps, and other services, as the number of Indian consumers using iPhones grows. Individual apps may, and likely won’t, see much monetary success in the short term. Even a few success stories will feed the appetite for more developers leaving the intensely competitive Android eco-system to try their chances for focused local apps in the Apple eco-system of apps. Apple’s success will depend on the success of the Apple eco-system and business models to thrive in the highly competitive Indian marketplaces.
Apple’s proprietary services and media content will see intense competition in India from a mature and sophisticated marketplace. Intense competition in media streaming for India-specific content (cricket) needs to be feature-supported for Indian preferences (larger TV casting for example). Services like Apple Pay are less attractive against entrenched services like PayTM, Google Pay, and Meta. New alliances and deals are needed to grow margins in India with Apple’s offerings.
The common theme has a Dynamic India’s success linked with Apple’s success. As a critical component of strategies for a Dynamic India having one of the colossal global tech enterprises pushing success can help bring future growth and gains.
For more analysis and notes see http://www.ekalore.com/india-business
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