Apple Will Set Up a Dedicated Distribution Center in India

With Android phones dominating the India market, Apple is planning to consolidate its logistics operations,  set up a dedicated distribution center for iPhones, iPads and computers  in India reports the Economic Times.

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Citing two senior industry officials, the report says that Apple is turning to its global logistic partner and one of Europe’s largest logistics companies, D.B. Schenker, to set up operations at Bhiwandi near Mumbai.

This distribution center in India will ensure the availability of Apple products at retail stores and set a common pricing for offline and online sales. This will ultimately enable the company to exercise greater control over the supply chain of its products, reports The Tech Portal.

Five months ago, during an earnings call, Tim Cook said: “India is now one of our fastest growing markets. In the first three quarters of this fiscal year, our iPhone sales in India were up 51% year on year. We’re looking forward to opening retail stores in India down the road, and we see huge potential for that vibrant country.”

December 23, 2016   No Comments

Apple Discussing with Government on Manufacturing in India

Apple Inc., has written a letter to the federal government in India outlining its plans to seek financial incentives in an effort to gain market share in the country where 97% of all smartphones run Android, reports Buzzfeed.

Earlier in June, the government allowed single-brand retailers like Apple to open stores in the country with the caveat that they procure at least 30% of their raw materials from India after the first three years.

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Prime minister, Narendra Modi, has been trying to ramp up manufacturing in the country through the “Make In India” initiative, and smartphone makers such as Samsung, Xiaomi, and OnePlus already assemble their phones in India to keep prices down.

With 50 million of the country’s 1.2 billion people owning a smartphone, India’s market is not saturated, yet, and is an attractive market for Apple to see significant growth.

 

December 20, 2016   No Comments

India’s Ola Cabs to Feature Apple Music

Ola, the online transportation network company based in Bangalore, India, has partnered with Apple to provide Apple Music as part of its customers’ in-cab experience, and as a component of its platform called Ola Play.  Sony, Qualcomm and Audio Compass are also part of the same platform. When passengers book an Ola ride, they will be able to interact with an in-car tablet to control the vehicle’s air conditioning, music, watch videos and even read ebooks, reports LA Times.

Ola Play

 

During a news conference, Bhavish Agarwal, CEO of Ola said, “Cars were initially built for the driver,  but with ride-sharing, the control needs to be there for the passenger, and Ola Play works along that.”

Since this is Apple’s second such partnership (the first being with Didi, China’s ride-hailing company) some analysts are wondering if Apple has plans to develop software or services for transportation network companies or even auto makers.

November 26, 2016   No Comments

Apple’s Partnership with India’s Jio Ups Sales

Per Apple‘s CEO Tim Cook, the company’s iPhone sales in India for the fiscal ending September 2016, grew by over 50 percent as compared to the same period last year. He attributed the reason for this jump in sales to Apple’s partnership with India’s Reliance Jio.

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Cook said that Reliance Jio is rolling out 4G coverage in 18,000 cities and 200,000 villages across the country. Besides, the company had gladly extended a free one year of service to buyers of new iPhones. Hence, Apple has decided to partner with them to ensure excellent iPhone performance on their network, reports P.C Tablet.

Cook added that the company is looking forward to the rapid progress of 4G networks in India, since it would raise the proliferation of iPhones in the country, which in turn will drive their net level of growth.

October 27, 2016   No Comments

India Further Liberalizes FDI Regime

On June 20, India announced a number of  measures to ease foreign investment in defense, civil aviation, pharmaceuticals, retail, food trade and broadcasting. The Federal Government has liberalized the FDI regime with the objective of providing a major impetus to employment and job creation in India.The government’s action opens up more than a half-dozen sectors to 100 percent foreign investment. The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi. This is the second reform after the last radical changes announced in November 2015.

FDI Reforms

 

India’s commerce and industry minister, Nirmala Sitharaman, told reporters that “definitions will have to be simplified, and clarity will emerge.” The Washington Post quotes Amber Dubey, partner and head of aerospace and defense in India at the business consulting firm KPMG, who said that “easy terms like ‘modern technology’ will allow most leading defense companies to come in unhindered.”

The government relaxed local sourcing norms for up to three years for single-brand retail trading of products that have “cutting-edge” technology. This will likely benefit Apple which had applied for exemption from the government’s rule of the 30 percent local-sourcing norm. The company will now be able to open a chain of branded stores in India. Ikea will also benefit from these relaxed norms.

100% foreign investment in civil aviation and foreign pharmaceutical companies being allowed  to invest 74 percent automatically in existing brownfield projects without government approval, are two other positive policy reforms.

“The opening up of food trading holds the most promise and is likely to generate real investment,” said Richard M. Rossow, an expert in U.S.-India policy studies at the Center for Strategic and International Studies in Washington.

June 23, 2016   No Comments