Drawing comparisons with China, Tim Cook, the CEO of Apple declared that he is “bullish” and “optimistic” about India, a market that he plans to penetrate and explore further.
Tim Cook reinstated the company’s plans to utilise its resources to expand their footprint in India. “We are investing in India. We’ve already launched an app accelerator centre. That’s on top of working with the channel and looking at expanding our go-to-market in general,” Cook stated during the iPhone maker’s third quarter earnings call.
Talking about India’s expanding tech market and tapping untapped potentials, Tim Cook stated, “We began to produce the iPhone SE there (India) during the quarter, and we’re really happy with how that’s going. And so we’re bringing all of our energies to bear there. I see a lot of similarities to where China was several years ago. And so I’m very, very bullish and very, very optimistic about India.”
During the quarter, India became only the third country to assemble iPhones thereby throwing light on the importance and potential of the country as a manufacturing and assembling unit. Apple’s iPhone SE is currently being assembled in the tech-city of Bengaluru with partner Wistron. Though the initial production began in “small number” Apple has disclosed plans to start full-fledged manufacturing operations in the country by bringing its key component makers under one roof, and has sought tax exemptions and fiscal benefits from the Centre.
Incidentally, according to a research report, it is predicted that by 2020, almost 96 pc of mobile phones sold in India will be locally manufactured. According to Dr Ajay Kumar, additional secretary, Ministry of Electronics and Information Technology, “In the next five to ten years, nearly 25 pc of the global economy would be actually determined by the digital economy. He said that the Internet economy was the biggest opportunity in India and had the potential to be bigger than the ITeS industry.”
Presently, India is the second-largest smartphone market in the world in terms of number of users but it is expected to be the biggest market for global smartphone sales in the next few years.
Apple witnessed a revenue growth by six pc and profits 12 pc year-on-year. It reported over USD 45 billion in revenue and USD 8.7 billion in profit for the second quarter. However owing to its dip in sales in the United States of America and China, Apple investors are looking for options elsewhere, which probably explains its shifting interest to India.