You can buy a decent mid-range phone in India at the price of AirPods. Apple can never be the number one in India, the economics will never work. But because of the scale, it will be still a big market for Apple.
Apple is expensive in India because Indian consumers are purchasing Apple products which are manufactured outside India. Once Apple starts manufacturing in India, prices will go down.
@@ankitbera1482 Apple has already started making iPhones (regular models) since the last 2-3 years. Prices still haven't come down much. Apple just indulges in promotional deals tying up with credit cards and exchange offers to drive sales, especially through online platforms. It's like Apple just won't compromise on their huge their profit margins to drive more sales.
@@ankitbera1482 Labor cost goes down, doesn't mean Apple will sell their product cheaper, this is business, and Apple has a habit maximize their selling price, look at the new Vision Pro, $3500 US Dollar each !!, With that amount of money, you can buy appliances for the whole house...
They know which economy is the fastest growing in the world, and is going to be the 3rd biggest in 2 years and be larger than the US in a couple decades. There you go!
It’s more complex than that, different brands specialize in different components, Samsung it’s not just in the business of selling phones. They sell chips,semiconductor,tvs, appliances, etc
@@KnightWithAnAssaultRifle apple is more dependent on tsmc, foxconn and arm than Samsung. Now Samsung is not the top display provider for apple. There is LG and also another chinese company. Samsung can be replaced but tsmc or arm or foxconn can't be
most indian person i know use android not only because it's cheap but can easily mod, and can replace PC if they don't own one, it something that's apple differently lacking
True now, but over time, like they did in China, Apple will eventually capture more sales, and most of not all of those sales will be at the upper end of the market as Indian middle and upper class grows, assuming the economy grows and is prosperous. Apple isn’t interested in growing midrange sales, it wants to grow aspirational premium iPhone sales. Yes, it does offer a range of sales points products with former older flagships at discounted prices which will grow market penetration. Eventually those iPhone owners will pass their iPhones to other users when they upgrade to a new iPhone model.
One , The price of iPhone 14 pro Max is 1099 USD in the USA whereas it's 1700 USD. Two , Almost everyone buys career unlocked phones ! These two things are a major factor which no one from there gets !!
As once an iphone user, I really do not understand why anyone should invest their hard earned money to buy their phones. Android is simple and made for common people
Android had way more apps, and you can load data from your old phone or even your computer with the USB c. IPhones force you to rebuy everything on your new device. Not fair.
It's better to put the money to pay the EMIs for a new car. x10 the current price of 14 Pro will get you a decent sedan (Honda City) and that of pro max a Toyota Corolla. Wild.
@@BibhatsuKuiri But people don't buy these things straight out of their salary. They buy from their savings. So the salary component doesnt play a big part unless its too low like below 30k since people will buy it out of their savings if they have enough money. Moreover, most Indians who buys iPhones don't go for the most premium version. They mostly buy the base versions which are under 70k most of the time.
If Apple wants to truly compete in the Indian market, they should manufacture a mid-tier level phone with current tech. And I don't mean just manufacture iPhone 12s with old tech. Where do you think the major revenue comes from? It's the App Store and the % cut they get for every purchase made. It's like Sony PS5s. They get their primary profits off from the sales of games, not the expensive consoles. In fact, Sony loses money for every PS5 sold.
Actually, the iPhone itself still represents the major part of Apple’s revenues, 52% of revenues for FY2022, while all Services revenue made up a respectable 19.8% and of Services, the App Store only makes up about 30% of that revenue. Remember, the App Store generates revenue for developers, and Apple gets between 15-30% of that revenue, not all of it. In many cases, freemium apps don’t generate much until the user pays for something. So Apple’s App Store, while it does generate revenue that goes to Apple, it isn’t nearly a huge part of Apples services or overall revenue.
Also, Apple will not make products that don’t have a decent margin to generate profits. That is not their business model. Samsung, Google and Chinese Android makers all sell lots of lower priced smartphones but make relatively small amounts of revenues, and even smaller amounts of profits, if any. That is why, despite only having 22-24% of the smartphone market by unit sales numbers, Apple captures 55-60% of the revenues, and 85% of the profits worldwide in the overall smartphone market. By dominating the ($500-$900) premium and (>$999) ultra premium markets, Apple makes more revenue and profits per sale. In fact, Apple average sales price per unit is about $825, while even Samsung’s is diluted down to $350. Even if Samsung sells more units, it makes much less revenue and profits overall each quarter, despite selling many many midrange smartphones, and also having little ability to monetize its App Store.
iPhones are extremely cheap in US. In india, its close to $2000. It's not at all worth that money. If iPhones were $1000 in India, everyone would buy it, but it will no longer be an aspirational product. Even the non-pro iPhones cost $1000.
@@gouravmahapatra423 there's always been a blackmarket for American and uk brand stuff made in asia. Even original nikes are 10x cheaper if you have a vietnamese contact.
Apple still does not have proper Indian Multi-language support. They have focused too much on the high-tech aspects but completely forgot the low-tech aspects. Indian language (not just limited to Urdu/Hindi) support (both display, environment/customization, messaging, news etc.) will be a critical feature which comes at close to ZERO INVESTMENT. Google / Samsung saw this more than a decade back which is why they Android/Samsung have a major market share - though hardware quality might not always be the best. This is something Apple Market Researchers need to seriously analyze, if not it will be limited to a very premier segment only.
Here in India, I am using $200 5G phone, Made In India. Not from big brand but it's serves the purpose. Getting 1Gbps 5G speed in my town. Apple needs to lower there price to around $250 then I will buy it.
@@zacklee5168inorder to get a decent job we Indian students study 11+ hours a day ,India is slow because of democracy,every country got dictator like govt for fast basic development we got democracy from the start, we are not lazy
Opening only 2 stores is a good start. But to be in the top 10% of earners in India is only around $300-350 a month. So this progress to gain a decent share in the Indian market might take a while.
@@beast6029 Actually the opposite is true because of the all the import taxes. Old models will run you close to 900USD that can be had for less than 300 in the US.
Just like a spark is needed for bigger fire. This start from Apple is going to turn into huge success for both. Indians are very adaptable. The education system and youth will pivot to skill up for manufacturing. Skill and employment is like catch22. But Apple has broken that stalemate. I only fear the dirt left wing politics.
Number one reason is cheap labor. India's population is skyrocketing. China's population is aging and shrinking. Humans are more abundant and cheaper in India.
@@DDENZY it's unnecessary to buy it in USA, the cheapest iPhone in Asia is Hong Kong and Japan as well,their price pretty much is the same in the USA without the taxes
Appel brings in the brand value with itself otherwise Samsung operates the biggest Smartphone manufacturing plant on Earth in Noida (Outskirts of New Delhi, India) but it didn't attracted that much eye balls and these news itself work as an advertisement for the country .
@@peterseth3296 Foxconn has invested 700 Million $ in Bangalore plant and 500 Million $ in Telangana plant to expand its apple manufacturing along with other tech giants . Maybe soon Google pixels too will be manufactured in India . India is expanding its rupee trade for its own benefit and not to challenge $
@@yashkumar3196 i think we need to stop this de dollarization nationalism because yesterday i've read an article. it clearly said india is not ready to replace any currency because our export is not even 5% of total trade. forget about de dollarization, rupee cannot compete against yuan or rubble
Apple already has it's R&D centre here in Hyderabad . Now many low skilled labourer will find good opportunity and we will buy more made in India products .
Don't jump at the decision, fellow Indians. A corporation will go where it suits the corporation the best. If Thailand or Indonesia are better places to manufacture iPhones tomorrow, it will be goodbye to India, the same way as it has been goodbye to China.
See some comments that India is not capable to produce "quality phones", has no work ethic. Well, those people need to understand that Apple themselves would have conducted enough background research, done SWOT analysis of such a move and would've identified the viability.
@@medanchess7892 Well, comment section can go to hell. They have no bearing on the decision of Apple to move part of their manufacturing to India. They have enough rational people to evaluate that decision.
@@medanchess7892 in todays large production facilities, "work ethic" and level of perfection of each individual is not really that important anyway. These processes are timed, planned extensivly and quality check in every step. All major german car brands like BMW, Mercedes, Audi maufacture and assemble their cars in india, they don't have quality than their german counterparts because the process is not dependent on the level of quality a worker brings. It was different in the past, BMW's produced in the US always had issue, same goes for Honda but nowdays these problems are mitigated. Even Toyota can produe cars in india on their level of reliability and soon Lexus will follow so a mere phone production should not be too difficult to handle. The real risk in manufacturing in india lies somewhere else.
@@medanchess7892well all i can say is you got poor education because since yrs samsung operates largest factory of phone manufacturing in india itself I can bet your media didn't told you this because if they did you might cry whole day
@@medanchess7892 So you would rely on internet trolls posting nasty racist comments on India and Indians than on Apple's instincts and business decisions? LMAO You're such a naive and resentful kind.
Apple i.e. Foxconn have just declared that they won't be manufacturing in India. Basically Apple Manufacturers have already dumped India. This video did NOT age well.
Wow! Anuz dai in CNBC!?! I've been watching you from your channel, "At the end of the day". Looking forward to more CNBC's content featuring Anuz Thapa! 🇳🇵🇳🇵🇳🇵
Don't be a map chutiya. If an Indian cannot step foot in a region, it's not India. Deluding yourself of the reality does nothing to take the nation forward.
Not sure on how apple will do in Indian markets, but if you (CNBC) do not show India’s map correctly, you are going to lose some consumers of yours for sure.
The iPhone is still a premium phone for a lot of buyers in India. And will remain that for many years unless Apple can figure out a way to compete with the Chinese manufacturers and Samsung and get the iPhone to a price point where it may be an attractive buy for a middle class Indian.
I am from the UK. For some time now I have been greatly impressed with India (love their music) but what has been obvious is their adaption to technology. I read an article the other week that suggests that in the next decade, they will become the world's superpower for domestic goods
Not just only the prices of Apple products, but also the prices of services. It's very easy use any apps you want for free in android. But in IOS, you can't crack and It will take too much money to use those kind of apps.
@@kaboonali5466ol gimmick product ? Have you ever used an iPhone, lol miles better than cheap Android phones with continuous software support and a robust operating system, I’m using an iPhone and I swear I won’t go back to Android after having used both the OS and the respective hardware too
