Why is the online introduction of Apple important in the country

Posted on 15th Oct 2020 by rohit kumar

Apple stores are the best place to buy the products of the famous company Apple. Perhaps this is the reason why this American tech giant opened an online apple store last month. The company opened its store in India 23 years after opening the first online outlet in the US and 19 years after opening a retail outlet in 2001 in Tysons Corner, Southern California, US, at McLean and Glendale Galleria. The online launch means that by next year its retail outlet in India will also open. In such a situation, the real experience of buying Apple in Apple's store in India will also be unique because its store will also have special features like 'Genius Bar' which was showcased by the company's founder Steve Jobs almost two decades ago.

 

In such a situation, the question is, why is Apple, one of the world's giants, making its online debut in a market like India with such delay? Government officials and industry insiders point out that Apple has been the biggest brand apart from Walmart and has been in talks with India for Foreign Direct Investment (FDI) for a long time. In this sense, Apple's online launch is the epitome of Safata for FDI in single-brand retail. However, there is no indication of how much Silicon Valley giant will invest in the country. Despite a multi-brand retail policy and 51 percent FDI permission, Walmart failed to establish a store. In such a situation, Apple's entry is seen as a turning point.

 

A source aware of this said that Apple was waiting for the relaxation of the mandatory 30 percent rules for the purchase or source policy related to the single brand FDI policy in India. On the other hand, the United Progressive Alliance (UPA) government led by Manmohan Singh had allowed 100 percent FDI in a single brand, which allowed Sweden's IKEA to invest Rs 10,500 crore in 10 years. Apple had postponed its plan for India by continuing negotiations with the government to simplify the guidelines regarding goods or sources. Apple was helped by the fact that IKEA is also aggressively negotiating changes in the rules related to the purchase of the source. Last year, when Narendra Modi's government started its second term, further relaxation in the rules of purchase or source of goods was given. The move helped the largest single brand, FDI Apple.

 

What exactly has changed and how? In 2016, the company's CEO Tim Cook traveled to several cities for a week, including a meeting with Prime Minister Narendra Modi. This was proof that Apple is serious about India but the company will open the store on its terms. From there the government continued to work at a great pace. Earlier it was a policy that 30 percent of the goods sold in the country should be purchased from the country itself, but in August 2019, the government expanded the definition of sourcing. Considering their compliance with the source procurement norms, purchases were allowed to be taken into consideration by any company including exports. With this, the burden of compulsory procurement rules from India has reduced considerably for multinationals whether it is IKEA or Apple. Another exemption freed companies to meet local sourcing requirements as an average during and after the first five years. Besides, the single-brand retail chain was allowed to open an online store before opening any store in the country, a move which was hitherto forbidden.

 

In India, iPhone maker Apple is seen as a major FDI in the retail sector, and the way Apple is present in India is present in more than 25 countries and has more than 500 stores. In such a situation, the benefits of the long term are important. Indeed, even during the epidemic, India was among the four places (apart from Singapore, China, and Thailand) where Apple took the initiative to open stores. During this period, online openings were conducted in India only, but Apple fans should know that the company has opened its retail shops worldwide since its inception online. Its online stores are present in 38 countries and Apple likes to call itself one of the most experienced e-commerce companies in the world. Narendra Singh, IDC's research director (Devices and Ecosystems - India and South Asia), said, "Apple is known for its retail stores in terms of location (because it is the prime location of a city) and experience. A store is also in operation in India (Mumbai), so the company may try to bring some aspects of its experience through the online store.

 

IDC analyst said, "Although India is an important market for Apple in the long term, it is worth noting that Apple belongs to the expensive and super-premium segment of the market which has an 80 percent share below the $ 200 level. Apple also has expensive products in the field of personal computers and earplugs. Singh says, "Due to the launch of Apple online, we cannot see the immediate impact on its market share." He said that this is one of the steps being taken by the company to increase relevance and ultimately to achieve business in the long term.

 

According to Prabhu Ram, head of the CyberMedia Research (CMR) Industry Intelligence Group, Apple's relationship with India is now potentially strengthening after several years of waiting. CMR analyst said, 'I believe the Apple online store is the first step in a series of new initiatives taken by Apple in India. This step has come at a time when the market conditions in India are favorable and allowing Apple to work free.

 

Apple is taking local language friendly initiatives in its online store in India. With the opening of online stores in India, the move towards the manufacturing of Apple devices has been taken by companies like Foxconn, Wistron, and Pegatron in the country and it will be used by the company in this technology sector.

 

New iPhone for 5G

Apple has introduced four iPhones equipped with the technology necessary to use a fast 5G wireless network. The first model among these is the iPhone 12 with a 6.1-inch display which is similar to the iPhone 11 but lighter and thinner than that. It starts at US $ 800. The second model is the iPhone 12 Mini with a 5.4-inch display, which costs around $ 700. The higher-rated iPhone 12 Pro has a better camera than costs around $ 1000. The fourth model is the 12 Pro Max with a 6.7-inch display and starts at $ 1,100. Some Apple customers may also be angry to know that the company is not providing an adapter with the phone. The company says that by doing this the packing box of the phone will remain small and light, which is environmentally friendly and convenient for export. Apple however is selling the power adapter separately, priced between $ 20 and $ 50.