Apple is one company among many that is beginning to ramp up their operations in India, recognizing the emerging market as one that could be a large contributing factor in the future of the company. The Motley Fool reports that Apple is looking to double their sales in India and their first step has been increasing the number of distributors from three to five. Apple has also launched a market research effort in hopes of understanding the market and illuminating a somewhat difficult and convoluted business environment.
Apple also placed a job posting for an Indian policy advisor to help the tech giant more effectively navigate the complex — and at times corrupt — bureaucracy that makes India the 142nd most difficult country to do business in, according to The World Bank.
While the market for smartphones in India is much smaller than that of others, China is the best example with twice the GDP per capita than India, their massive population of one and a quarter billion hold great potential for a thriving smartphone market, just not in the same way it thrives in the United States. Currently Apple sells older models of the iPhone which can be manufactured more cheaply than newer models. And while finance options are available, competition between Microsoft, Motorola, Xiaomi and other companies with budget phones leaves Apple in a tricky situation. By the sound of things though, Apple is turning to marketing to make themselves more competitive.
Interestingly, it also offers services like Apple Music at a fraction of the cost of its American version ($1.88/mo in India versus $9.99/mo in the U.S.). Apple also launched its first TV advertising campaign in India recently, which should help expand awareness of Apple’s highly aspirational brand.
Playing in the Indian emerging market as well as other emerging markets around the world is an interesting game for big tech companies. Whether it’s selling older models of premium phones, creating phones designed for the market, clever advertising, or a deep understanding of the market that helps tech companies succeed, India will, without a doubt, become an integral part of smartphones sales as well as influence the success of international companies like Apple, Motorola, Samsung, and Xiaomi.
Let us know what you think of Apple’s, and other smartphone company’s, strategy in India in the comments below or on social media.[button link=”http://www.fool.com/investing/general/2015/08/09/forget-china-apple-incs-next-big-opportunity-is-in.aspx” icon=”fa-external-link” side=”left” target=”blank” color=”285b5e” textcolor=”ffffff”]Source: The Motley Fool[/button]
featured image courtesy Business Insider
Last Updated on November 27, 2018.