Apple is one of the largest smartphone brands in the world and one of the most popular among consumers. Apple's iPhone series products, with their high-end design, powerful performance and unique ecosystem, have won countless loyal users. However, it has not been smooth sailing for Apple in the global market, especially in India, the world's second-largest smartphone market, where Apple has not performed as well as it should.
India is a huge market of 1.3 billion people, and there is still a lot of room for improvement in smartphone penetration. According to statistics, the number of smartphone users in India will reach 9 in 2023400 million, accounting for 68% of the total population. In 2020, it was only 41%. This means that there is still a huge potential for the Indian market to be tapped.
However, Apple's share of the Indian market has been hovering around 2%, far behind competitors such as Samsung, Xiaomi, and OPPO. Apple's main problem is that its high and inefficient chain makes it difficult to appeal to India's mass consumers. India's per capita income level is low, and most people can't afford Apple's flagship models. Moreover, due to India's tariff policy, Apples are sold at a much higher price in India than in other countries. In addition, Apple's sales channels and after-sales service in India are also inadequate, resulting in a poor user experience.
To change that, Apple has been working to ramp up its local production capacity in India to reduce costs and improve efficiency. Not long ago, there was a new news that Apple plans to increase the production capacity of iPhones in India to 50 million units. But the OEM company is not Foxconn, but India's Tata Group, which is a bit interesting!
Apple's localized production in India is nothing new. Back in 2017, Apple started producing the iPhone SE in India, which was Apple's first locally produced phone in India. Subsequently, Apple successively produced iPhone 6S, iPhone 7, iPhone XR and other models in India. At present, there are two main OEM companies of Apple in India, one is Foxconn in Taiwan and the other is Westron in India.
Foxconn is Apple's largest OEM in the world and Apple's main partner in India. Foxconn has two factories in India, located in Chennai and Bangalore, which mainly produce high-end models such as the iPhone 11 and iPhone 12. Westrom is Apple's second-largest OEM in India, with a factory in Bangalore that produces low-end models such as the iPhone SE and iPhone 7.
So why did Apple choose Tata Group as its third-largest OEM in India? The Tata Group is India's largest conglomerate with a wide range of sectors including steel, automotive, energy, chemicals, hospitality, and aviation. The Tata Group is also one of the most respected businesses in India and is known for its high level of social responsibility and business ethics. The Tata Group has a subsidiary called Tata Electronics, which specializes in electronic manufacturing services (EMS). Tata Electronics owns a 200-acre plot of land in Chennai, where plans are planning to build a factory dedicated to the production of iPhones for Apple.
Apple chose Tata Group as the OEM company because Tata Group is a local enterprise in India and has a good relationship with India** and society, which can provide more policy support and market opportunities for Apple. The Tata Group can also help Apple enhance its brand image and social influence in India, increasing its recognition and loyalty in India.
The Tata Group has a wealth of manufacturing experience and technical capabilities to provide high-quality and efficient production services to Apple. The Tata Group also has a strong chain and logistics network, which can reduce transportation and warehousing costs for Apple and improve the speed of market response.
The Tata Group has the financial and investment capabilities to provide Apple with a stable and sustainable partnership. The Tata Group also has a pioneering and innovative spirit to explore and develop new products and markets with Apple.
Apple plans to increase its production capacity in India to 50 million units by 2024, which is a very bold and ambitious goal. At present, Apple's production capacity in India is about 20 million units, which means that Apple will have to double its production capacity in India in two and a half years. This initiative has important implications and implications for both Apple and India.
For Apple, it can reduce costs and improve profits. Production costs in India are relatively low, and India** offers certain tax incentives for locally produced products. Apple can reduce its selling price in India by producing more iPhones in India, improving its market competitiveness and profit margins in India.
China is Apple's largest production and sales market, but it is also Apple's biggest challenge and threat. China's political, economic and social environment is highly uncertain and volatile, which could adversely affect Apple. For example, the Sino-US war, the new crown epidemic, and the competition of domestic mobile phones may affect Apple's production and sales in China. Apple can reduce its dependence on the Chinese market and improve its diversification and balance in the global market by producing more iPhones in India.
Apple is a constantly innovative and enterprising enterprise, and it always strives to provide users with the best products and services. Apple's local production in India is an important strategy for Apple in the global market, and it is also an important initiative for Apple in the Indian market. Apple plans to increase its production capacity in India to 50 million units by 2024, a goal that demonstrates Apple's ambition and confidence, and a goal that presents opportunities and challenges to India. #iphone#