Apple to Increase Investments in India to Pick Up Slow Sales in China
Apple Inc, one of the biggest technology giants, is planning to increase investment in India. The company recently indicated that it is eyeing the second largest market in the world for long-term investment opportunities. This comes in the heels of the decining sales in the US and a slowdown in China.
According to Fast FT, a spokeperson of Apple Inc said the American tech giant has been investing in India lately to expand their operations and they were thrilled to have passionate customers and a vibrant developer community across the country. It was proved by the increasing investment into India last year.
Apple has launched its products earlier before it announced to ramp up investment in India. It also did a major ad campaign for the iPhone 6S in New Delhi and Mumbai.
Based on the information from Market Exclusive, Apple's CEO, Tim Cook suggested that Apple is considering India to be its next target of investment opportunities. In fact, it reportedly plans to open retail stores in the country. With iPhone 7's September release coming up, Apple believes it is strategically important and helpful in having stores globally in order to increase sales of its products.
According to the site, India used to serve as a help to sell unwanted and unsold products from the USA. However, these practices have changed and now, new products arrive to the Indian market only a few weeks after the USA.
Another reason is Apple Inc. has got the government permission. The compant sought the government's permission last month following the relaxation in FDI on the single brand in November last year.
Meanwhile, Apple sales in China has recently decreased. According to CEBC ,the sales of the company fell 3% from the fiscal third quarter to $5.78 billion in Greater China. This condition is barely predicted because China is the company's third largest market after the U.S. and Europe.
In the second quarter, the tech giant ranked No. 6 in China's smartphone market with a share of 6.5%. The slowdown in sales is apparently caused by the increasing competition from South Korean rival Samsung Electronics and Chinese manufacturers including Xiaomi and Huawei Technologies, whose products are way cheaper.
If Apple plays its cards right, investing in India might turn out surprisingly different than what it has experienced in China.