Recently one of the leading Apple manufacturer Wistron Corp revealed that it is planning to shift its manufacturing facilities outside China. The chances are India is going to be the next destination for the manufacturing of Apple products. India’s cheap labour cost and increasing demand for iPhones and other Apple products will also help Apple to increase its market share in the country. Besides, manufacturing in India will help to eliminate the high tariff rate sanctioned by the Indian government.
The Reason Behind the Growing Importance of India for Apple
there was a time when Apple was focusing on specific overseas regions, such as the European countries, Australia, and China. India was never in Apple’s priority list, as the majority of the Indians buy mid-range smartphones. By the end of 2018, the total market share of Apple was around 1% in the Indian market.
Things started to change in 2019 when the global smartphone market becomes saturated. But India was the lone country where the demand for the smartphone was rising. Apple took advantage of that and started manufacturing its product in the country. The company added its latest generation iPhone XR for India production. Once the company started manufacturing its smartphone in the country, it found a great public reception. iPhone XR was a massive hit in India owing to its low cost. The company Doubles its market share to 2% within one year, which is remarkable for a premium segment company like Apple.
Currently, the company is focussing the unexplored countries like India. Apple recently starts to produce iPhone 9, also known as iPhone se2 targetting India. Looking at the price, it seems like the upcoming smartphone is going to be a hit.
Besides, Apple can completely eliminate the high tariffs by producing its iPhones in the country.