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131
C.A 3

Why Apple fails to Establish foothold in Indian

Market ?

By:

Arjun Rao Rachakonda

11903860

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APPLE

Apple Inc. is an American multinational technology
company headquartered in Cupertino, California, that
designs, develops, and sells consumer electronics,
computer software, and online services.


Apple was founded by Steve Jobs, Steve Wozniak, and
Ronald Wayne to develop and sell Wozniak's Apple I
personal computer, though Wayne sold his share back
within 12 days.


Apple Computers, Inc. was founded on April 1, 1976,
by college dropouts Steve Jobs and Steve Wozniak.


The new company a vision of changing the way people
viewed computers. Jobs and Wozniak wanted to make
computers small enough for people to have them in
their homes or offices.
 APPLE PRODUCTS


iMac


Mac book


iPod


iPhone


iPad


Apple Watch


Apple TV


Home Pod


Software


Electric vehicles

Apple wants to start producing an
electric car (icar) with autonomous
driving as soon as 2021.
                  Evolution of Apple iMac

Apple's first product, the Apple I, invented
by Apple co-founder Steve Wozniak, was
sold as an assembled circuit board and
lacked basic features such as a keyboard,
monitor, and case. The owner of this unit
added a keyboard and wooden case.

Personal computers based on various
models of Power PC microprocessors,

With intel Xeon that were developed
from 1994 to 2006.
 Pro Display XDR and Mac Pro

The first 32-inch Retina 6K display ever. Up to 1,600
nits of brightness.


An astonishing 10,00,000:1 contrast ratio and super-
wide viewing angle.


Apple Pro Display XDR, the world’s best pro display.


Processor Configure from an 8‑core to 28‑core Intel
Xeon W processor.


Graphics Configure two MPX Modules with up to four
GPUs.


Storage Configure up to 4TB of SSD storage.


Apple takes a complete product life cycle approach
to determining our environmental impact.


Smarter chemistry

BFR’s, PVC and beryllium-free.

Apple in India Market Share

Apple aficionados wait in line around an Apple Store in Shanghai in anticipation of a new
product.
 10 Reasons that
iphone beats Android

iPhones are faster.


Better hardware and software integration.


Easiest phone to use.


OS updates when you want them.


The best apps first.


No bloatware!


Works beautifully with Macs.


Apple Pay


Highly Durable and Most Secure.


High Optimisation.


Eco-friendly.
 Why Apple fails to Establish Foot hold in
Indian Market ?

There are four reasons why Apple has fallen short :

1. Apple iPhone priced too high :


eMarketer says that India will host 39 million new smartphone owners in 2019.


Apple is not winning over many of them because its products are priced too high.


Apple charges about twice what customers are willing to pay.


The Journal reported that over 75% of smartphones sold in India cost less than ₹ 20,000


Chinese rivals including Xiaomi, Oppo and Vivo are gaining market share by selling
smartphones for less than ₹ 15,000 and signing up Bollywood and cricket stars to promote
them.
2. iPhone battery life too short :


When Steve Jobs was leading Apple he prided himself on ignoring market research and giving
customers what he believed they should want.


In India that strategy is not working for Apple. Samsung has conducted extensive market
research in India and learned that improving battery performance is a crucial product feature
there "because customers often work long days away from electrical outlets and spend hours
commuting through Indian cities’ thick traffic," according to the Journal.


Counterpoint Technologies found that in the premium segment OnePlus leads Apple with a
30% share and samsung with 50% to Apple's 25%
3. No Indian manufacturing


The reason is that India imposes a 20% tariff on products sold there that are manufactured outside
India.


Apple imports the iPhone from China. While its rivals there make their products in India.


So in 2017 Apple set up a plant near Bangalore to assemble its iPhone SE


seeking tax concessions for importing materials, noted the Journal.


It remains to be seen whether Apple will be able to lower its costs enough to make a profit on setting
its price below that set by its Chinese rivals in India.

4. No Apple stores


Though most Indian consumers do not buy smartphones in urban stores, Apple wants to open an
official Apple Store there.


But it has failed because India requires single-brand retailers that are more than 51% foreign-owned
to buy at least 30% of their manufacturing materials from Indian vendors.


Apple makes most iPhone components elsewhere in Asia and has not been able to convince the
government to give it a break.


The Journal reports that government officials want Apple to invest more in local production and bring
more high-tech jobs to India.
 Charitable Causes

Apple is a partner of (PRODUCT)RED, a fundraising campaign for
AIDS charity.


In November 2014, Apple arranged for all App Store revenue in a
two-week period to go to the fundraiser,generating more than US$20
million.


In March 2017, it released an iPhone 7 with a red color finish.
 Environmental practices and initiatives

Apple Energy, is a wholly owned subsidiary of
Apple Inc. that sells solar energy.


As of June 6, 2016, Apple's solar farms in California
and Nevada have been declared to provide 217.9
megawatts of solar generation capacity.


In addition to the company's solar energy
production, Apple has received regulatory approval
to construct a landfill gas energy plant in North
Carolina.


Apple will use the methane emissions to generate
electricity.


Apple's North Carolina data center is already
powered entirely with energy from renewable
sources.
 Electric vehicles

Apple wants to start producing an electric car with
autonomous driving as soon as 2021.


Apple has made efforts to recruit battery
development engineers and other electric
automobile engineers from A123 Systems.

APPLE PARK

icar