As the smartphone market in India is mostly dominated by low end Indian and Chinese smartphone brands, it has become increasingly difficult for premium brands to penetrate and carry out business in this ever-competitive market. However, this is not true when it comes to Apple, regarded as the most premium phone brand available on the market. The company is well known for its quality and reliability, which is why people are willing to pay more for an iPhone. In fact, according to a report by Counterpoint Research, Apple’s iPhones made up 65% of the premium segment in India during 2018.
Similar Article – Pandemic No bar As Apple Posts Record Quarterly Earnings
However, all that is about to change with Apple setting up manufacturing in India. This move will bring down prices of iPhones and other peripherals as well as help in pushing down the costs of manufacturing these devices. This will also help in reducing the imports of iPhones, which has been one of the biggest reasons for their high prices. As per an estimate by Counterpoint Research, if Apple is able to bring down its prices by 20%, it will be able to sell 2 million more units every year in India. This is great news for consumers as they will now get the same quality Apple products at lower prices. If Apple succeeds in making India into an economic powerhouse, then Indians will undoubtedly benefit from cheaper goods and services that are made domestically rather than purchased overseas where they cost much more money than they should.
With low labour costs, tax breaks and exemptions and incentives geared towards promotion, Apple will be able to bring down prices by 20% or more compared to major brands such as Samsung and Xiaomi which are already popular in India. The company may also be able to offer attractive incentives like cashbacks on purchases made online or discounts on other products such as AirPods if you buy your iPhone 13 or iPhone 14 from an Indian e-commerce site.
Also Read – Top 6 Most Anticipated Gadgets of 2022
Apple’s decision to manufacture iPhones in India will also help create jobs for locals. This has been one of the major reasons why PM Narendra Modi has been pushing Apple, Google and other major companies to set up their manufacturing plants in India. The government has also been offering huge tax breaks and other incentives to attract foreign direct investment into the country. Not only will this move push India into reaching its target goal of a $5 Trillion economy in the coming years but with regular inflow of FDI worth billions of dollars from multinational companies like Apple, Google and Foxconn it will also play an essential role in helping boost India’s development initiatives.