Apple Watch data may prove it, but it’s safe to assume that news of its own store set to make its India debut next week got pulses racing among fans. An ‘unveiling’ would be a more fitting description for the planned event, given Apple’s love of artistic elegance, reflected as much in its logo as it adorns. Of the two local renditions of its famous bitten apple (think ‘bite of knowledge’), one is designed for Mumbai, a bit kitschy if colourful, while the other is for Delhi, a city pays rich tribute to vent and arches. To celebrate, its website has a portal with a music playlist. Capital, for example, is led by the soundtrack of Delhi-6A 2009 Hindi film with Rabbi Shergil’s classic go to bulla Next hinted. It’s all part of what Americans call keeping on the charm. Apple Inc CEO Tim Cook, due for a visit that could include a meeting with Prime Minister Narendra Modi, recently called India a “very exciting market” as a “key focus”. Here its iPhone sales are increasing and so are its exports. It’s a win-win story, the kind we want global investors to take notice of, given that its success is the highlight of our China-plus-one pitch for value chains that engulf the globe.
Apple’s numbers for the country are pretty good. It sold 6.7 million iPhone units here in 2022, up from 4.8 million in 2021 and 2.7 million in 2020, according to IDC data. But as rich markets saturate, it can count on upgrades here for years. The dazzle of flashy stores, it must be admitted, will attract buyers better than the sales channels we’ve had so far. In fact, the US-based company was so eager to open its own outlets that it adapted its entire Indian game to our maze of retail regulations. Which is why policy makers may be tempted to join in the festivities. It is estimated that the outward shipments of Apple’s iPhones in 2022-23 will be around $5 billion. If so, it would be a hearty chunk of the over $10 billion worth of such handsets exported in total (as reported) and a feather in the centre’s cap as a policy outcome. Back in 2017, the company had reportedly sought tariff relief for local assembly and an FDI rule exemption for wholly owned retail chains, which required it to source 30% of the value of its salable goods locally. Was. After negotiations and tweaks, its Indian retail business may include what it sources for exports in its tally to comply with that rule (according to a 2020 circular), its trio of vendors busy making iPhones here , and ‘Made in India’ volumes are growing strongly in response to public incentives for production under the self-reliance plan. Thousands of local jobs have been created, with many more to come as Apple diversifies its supply chain away from China to make India another export hub.
For other investors to follow suit, however, India will have to diversify its policy hardsell. Apple’s success doesn’t reflect how competitive its new game is. As a premium brand, globally, its gadgets make up a tiny fraction of its gestalt price compared to rivals. As a business, it had staked its future on differentiating itself, not accelerating price hikes. Typical trends in world trade, however, are determined by sluggish prices distorted by national policies. The world is in geopolitical flux, so the outlook for devolution is hazy. But our best bet for China-plus economic growth will be to find a comprehensive cost advantage that is loud and clear.
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