The success story in China is stale and old, Apple needs a new place. They can do it in any country, but India is their best option. The development options are favourable here, Cook is thinking deeply. The manpower is available easily, people work for low wages. China already did it; Apple also sold the phones here. The firm’s top executives planned their India strategy for months, developing regions are really vital. In 2020, they will make this area strong, the concept is clear. Huge revenue will come from these regions; there is no doubt about that. The device may not sale here though; the market never accepts costly products.
India’s laws are strict; they never entertain foreign devices easily. India has various domestic manufacturing units; they will get the first preference. The total volume of components will be measured, 30% of this should come from here. Domestic sourcing is good for local economy, every government prefers that. This requirement is practically impossible, China gives many parts. This made them a little shaky; China got the upper hand yet again. The cheap components will reach the country and a cheaper version will be produced. The plant will mainly target phones and tablets, other devices will not be touched.
They will find a loophole in the complicated law and capitalize on it. Once this market is captured, anything is virtually possible. The financial burden is huge, Apple can’t bear that. The government can help in reducing key costs, some incentives should be figured out. When the organization is very large, the lawmakers give incentives, it has happened before too. Local employees will get jobs, the economy will become healthy. India is not totally rejecting them, they believe in helpful collaborations. They attempted many things to break this market, everything was unsuccessful. Indian prices are low, but demand is still poor.