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Apple boosts sales of high-end iPhones in India and expand the local production layout

via:cnBeta.COM     time:2020/2/26 8:31:08     readed:91

According to foreign media Apple insider, Apple's claim that it failed to gain a foothold in India (Samsung and Chinese brands both outsold the latter) or was overturned by a new study.The research shows that iPhone sales accounted for more than 75% of all high-end smartphone sales in India in the fourth quarter, while iPad, apple watch and airpod sales also performed strongly.In addition to "double-digit" growth, apple is also expanding production in india.

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Apple's Rapid Transformation in India

"Apple doesn't have enough confidence in India's manufacturing system so it can't build factories and shift some of its manufacturing out of China," IDC analyst Navkendar Singh said at the time. A year later, however, apple's fortunes in india have been dramatically reversed. IDC's Singh noted that Apple "managed to find growth" in the second half of the year after "relatively slow" growth in the first half, thanks to the appeal of the iPhone 11 and preferential prices for iPhone XR and early iPhone models.

Tim Cook, Apple's chief executive, previously noted in a recent earnings call that the company "has double-digit growth in many developed markets, including the US, UK, France and Singapore. Strong performances in Brazil, mainland China, India, Thailand and Turkey have helped drive digital growth in emerging markets.

Apple's rapid growth in India is not limited to mobile phones. Cook also noted that "a high level of customer satisfaction and loyalty" would "bring Mac andIPad"For the iPad, we see growth in major emerging markets such as Mexico, India, Turkey, Poland, Thailand, Malaysia and the Philippines and Vietnam," he said

Singh also noted strong sales of the 2018 iPad in India, saying:" As the [Indian] tablet market is cementing the top five suppliers, it has helped Apple gain a high-end market share. Moreover, this year Apple has been able to win several big business deals, further consolidating its position in business.

IDC also noted the strong growth of wearable devices, noting that "Apple watch and airpods are popular with Indian consumers. The price reduction of Apple watch series 3 and the promotional discounts offered by the bank and e-retailer channels of Apple watch series 5 make apple watch series 5 popular among consumers. "

Apple first started making iPhones for the Indian market in 2017, in partnership with Wistron, a representative manufacturer. That summer, locally produced iPhones began to be sold in cities across India, with the words "Apple designed in California, assembled in India.".

In October, Apple began producing iPhone XR at its Foxconn plant near Chennai, India, and plans to expand production to include the latest iPhone 11 model. It is reported that production in India can save more than 20% of the production cost.

Last summer, counter point research analyst Karn chauhan also said Foxconn's labor costs in China were three times that of India.

It is reported that apple is not only making mobile phones for the domestic market in India, but also plans to export equipment from India to other markets, including Europe. This is part of a $1 billion investment in India aimed at diversifying production beyond India.

Tensions over a trade war between China and the United States have exacerbated those plans, which could hurt Apple's imports from China, but also provide the company with more options to meet global demand for products disrupted by curbing China's coronavirus outbreak. The scale and proficiency of Apple's global operations provide it with options that other manufacturers lack in addressing plant closures and other supply chain disruptions.

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