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India the fastest growing market says Tim Cook, Apple’s CEO after a surge in iPhone sales

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The pricing of the phone had always been a problem from Apple in India. The costliest phones in the market all over the world were made by Apple and the price tripled in India with the import duty on the newest phones. The company never committed to making the latest versions of their phones in India. It was always the older versions which got cheaper and cheaper.

However, the stubbornness of Apple saw the decline of sales in India and also there was stagnation and a bit of dip in the Chinese market as well. This gave rise to some tensions in the headquarters in Cupertino which turned into the company looking for newer ways in the Asian market. That being said, Apple then decided to produce the latest versions of Apple phones in India as the cost of labor in Taiwan and regions tripled.

Foxconn, the company which manufactures iPhones in India and Taiwan decided to turn to India for mass production. This reduced the price of iPhones to a great extent. The price decreased by about 20% in India which in turn gave rise to the increase in sales. Chinese phone-makers have always known that India is a price sensitive market and Apple is in its own premium bubble, did not realize this until the low budget phones started offering similar features and even the loyalists turned against them.

That being said, iPhone XR sales have shown a sudden surge and the reason for this is the price drop. Tim Cook, CEO of Apple, addressed the media during an event and said that the Indian market was getting tougher to please with Samsung and OnePlus offering similar features. It is tough to crack the Indian market when you are a company like Apple. It takes a lot of shape-shifting to fit into this unusual space of price sensitivity.

Tim Cook said that India is a long term market of Apple and it is also the fastest growing market. However, there is great potential but there has to be greater intent in exploiting that great potential. Cook said during the event, “Last one year has been tough for Apple in India despite India being one of the fastest growing globally. It will be a new start for Apple once it localizes assembling. It needs to target the growing pricing segment of $400 and above.”

“It’s a long-term play in India. It’s not something that’s going to be an overnight huge business. But I think the growth potential is phenomenal. Very important to be able to serve the market in a reasonable way. And we’re growing that capability there,” he added.

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