8:00 electronic enthusiasts News: India's Information Technology Minister Priyank Kharge said in an interview that "the intention of Apple (Bangalore) will be made to cultivate leading high-tech ecosystem and supply chain development pattern in India, which carried out the global competition for India It is very important."
Shortly after taking office in May 2014, Indian Prime Minister Modi proposed the “Made in India†strategy, hoping to transform India into a global design and manufacturing center. In less than a year, the Modi government launched the “Digital India†initiative in July 2015, and the key step is to “bring inâ€.
As one of the fastest growing markets for Apple products, India has been actively trying to get Apple to start assembly operations in the country. According to the British "Financial Times" report, on February 2, Apple received a approval from the government of Karnataka, India, approved to assemble mobile phones in the southern state of India.
India’s Minister of Information Technology, Pryanak Kharge, said in an interview that “Apple’s intention to manufacture in Bangalore will foster a leading high-tech ecosystem and supply chain development in India, which is crucial for India’s global competition.â€
Conducive to promoting "Made in India"According to a recent report by market research firm Counterpoint, Apple sold a total of 2.5 million iPhones in India throughout 2016, with about one-third of sales coming from the fourth quarter. In the fourth quarter of 2016, Apple's iPhone sales ranked only 10th in the Indian mobile phone sales list, Samsung and Vivo ranked first and second with 24% and 10% respectively, while Xiaomi and Lenovo both share 9%. Collapsed third.
“Apple’s current sales in India are less than ideal because of higher pricing and lower incomes for ordinary people in India. Originally, the sales of low-end and mid-range smartphones in India were better, including some low-end brands in China.†Shanghai Society Xu Mingqi, a researcher at the Institute of World Economics of the Academy of Sciences, told 21st Century Business Herald that if Apple produces in India, it can use local cheap labor and on the other hand it is beneficial to further expand the Indian market.
During the visit of Apple CEO Cook to India, the media (BBC) reported that India's iPhone price is almost the highest in the world, the same new machine is priced at US$650 in the US, and in India it is priced at more than 1,000. Dollar. It is reported that the retail price of Apple's mobile phone in India is much higher than that of other countries. The complicated local taxes and fees are one of the important reasons, especially the problem of repeated taxation. Indian media analysts said that the reason why Apple built a factory in India is to fulfill Cook's promise at the time, to reduce the price of India's excessive iPphone as much as possible.
In Xu Mingqi's view, Apple's establishment in India will benefit local manufacturing. “Because India has done a good job in software outsourcing, India’s hardware manufacturing is relatively weak compared to China, but if Apple is produced in India, it may drive the production of hardware and accessories. Promoted."
He also said that at present, this investment itself will also promote the employment of India and so on.
It is understood that once Apple and the Indian government reach an agreement on tax and trade conditions, it is expected that the assembly business will start in May or June.
Intensify competition with Chinese mobile phonesIn fact, as early as May 2016, when Modi met with visiting Cook in New Delhi, the two sides exchanged ideas on Apple's development in India, "Digital India", network security and digital encryption.
Outside of India, the names of their local smartphone brands are little known, such as Micromax, Intex and Reli-ance. At the beginning of 2016, these three brands once occupied the top of the mobile phone sales list in the Indian market, but fell to the top five in the fourth quarter.
“India's local mobile phones are basically products for low-end and middle-income people in India. The smartphones used by middle-class people are basically imported, such as Apple, Samsung, Huawei, etc.†Xu Mingqi said, in the long run, Apple's factory will exert certain competitive pressure on mobile phone manufacturers in India. But if Apple does not enter, these manufacturers will be under pressure. Imported smartphones, including Chinese products, are strong competitors of Indian products.
He said that India's domestic mobile phones and imported mobile phones may also have misplaced competition, because India's potential market size is very large. With the development of India's economy, people's income level will increase, the demand for medium and high-end mobile phones will increase, Apple This entry is undoubtedly the market.
According to Counterpoint's report, in the fourth quarter of 2016, China's major smartphone brands such as Xiaomi, Lenovo, Huawei, vivo and OPPO already accounted for 46% of India's market share. Although Apple has captured 62% of the high-end mobile phone market, most Indian consumers are not part of the high-end market.
Xu Mingqi believes that if India is to develop Internet mobile payments like China in the future, smartphones will be widely used and expanded, especially Apple's payment system, which will help India transition from cash transactions to non-cash transactions. In this regard, The Modi government’s “Digital India†initiative has been promoted.
Apple's setting up a factory in India will also put competitive pressure on Chinese mobile phone manufacturers. In recent years, Chinese mobile phone manufacturers such as Huawei, Xiaomi, vivo, and Lenovo have been able to compete with the world's major brands. Not only that, but Chinese mobile phone manufacturers have begun to expand outward after covering the domestic market, gradually occupying markets in other countries. The Indian market is undoubtedly tempting, the Indian middle class is expanding, and more and more people are buying smart phones.
"In the future, the growth rate of China's smartphones may slow down, but India is an emerging market and its growth rate may exceed China's." Xu Mingqi said.
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