A random sample of brand awareness in the iPhone’s next big market.
Tim Cook is incredibly excited about the opportunity for iPhone sales in India, a country of 1.25 billion where only 20% own a smartphone. But Apple, one of the world’s most valuable brands, is not what you’d call an everyday name in India. From a recent Morgan Stanley survey:
Click to enlarge. (Not seeing the graphics? Try the website.)
That should change if, as the Times of India reported Friday, Apple gets a pass on the government’s 30% local sourcing regulations and is permitted to start opening Apple Stores in India.
What caught my attention was the comment stream on that Times of India piece, “Apple may get to open stores without 30% sourcing norm.”
The top comments as of Saturday morning:
Click to enlarge. (Not seeing the graphics? Try the website.)
It’s a tiny sample, but it suggests to me that the subcontinent’s take on the Apple brand—equal measures of lust and hostility—is not that different from ours. If it worked in the U.S. market, it might just work in India. At least among Times readers.
Note: FDI stands for Foreign Direct Investment, the country’s main engine of economic development.
India represents a tremendous opportunity for Apple. In the short-term it will require a big investment in retail stores as well as incentives for the government to waive the sourcing requirement. This may involve commitments to open research centers in India and the development of other high-tech employment opportunities.
Apple creates developer communities in each of its major product markets which support local job creation and a platform for the distribution of locally-sourced content. In other words, Apple generates economic growth, high-tech employment growth and brings best-in-class products to the nation’s consumers. A decision to waive the sourcing norm and allow the establishment of Apple retail stores in India may be a boon for high-tech employment, directly and indirectly, for the nation.
“Sourcing” is just another name for “investing”. We don’t know to what degree Apple is “investing” in India, but I’d bet it’s fairly sizable and growing. Under that circumstance, it makes sense that India would put it’s antiquated tariff system to the side. It’s to India’s benefit!
For example, what if Apple has said it will build the “Apple Car” in India….
Those Indian commenters have better English skills than their American counterparts.