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CurrentEventsWeek7Presentation.pptxFOR APPLE, INDIA IS THE NEXT CHINA
BY: Tori Hyman
INBS 349: 52
Current Event Presentation Week 7
Agenda:
Article Summary
Brief Background about the Company Apple / Tech Industry
Thoughts on the Article and Why I Thought the Article was Interesting
Recommendations / Advice for the Retailers / Marketers
3 Discussion Questions
Links to the articles:
Jacob, Charmaine. “Apple Bets Big on India, but Will Still Rely on China for ‘years’ to Come.” CNBC, CNBC, 20 Apr. 2023, www.cnbc.com/2023/04/20/apple-years-away-from-diversifying-from-china-despite-india-expansion.html.
Mandavia, Megha. “For Apple, India Is the next China.” The Wall Street Journal, Dow Jones & Company, 11 Apr. 2023, www.wsj.com/articles/for-apple-india-is-the-next-china-7dee47c.
Wen, Philip. “China Finally Has a Rival as the World’s Factory Floor.” The Wall Street Journal, Dow Jones & Company, 29 Aug. 2023, www.wsj.com/world/india-china-factory-manufacturing-24a4e3f
Summary of the Article:
The article highlights that Apple is increasing their focus on India to diversify their manufacturing away from China.
In addition, the article mentions that the market for premium smartphones in India is expanding, with Apple as the market leader but may take a decade to reduce its reliance on China for manufacturing.
Also, companies like Vestas and TPI Composites are shifting their production to India even though India is facing challenges like an unskilled labor force and several infrastructure issues while they have the potential to become a manufacturing hub in the next few years.
Additionally, since Apple views India as a crucial market for growth they aim to manufacture a quarter of all of their iPhones in India by 2025 due to that fact that India's manufactured exports, especially in electronics, have been growing.
3
Brief Background about the Company / Industry:
Apple was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne and finally went public in 1980.
Apple Inc. has a long-standing history in the technology industry, starting as a personal computer company and evolving into a global leader in innovative consumer electronics.
Apple’s mission statement is a reflection of their commitment to designing and innovating products that lead the digital revolution in various industries.
Apple focuses on developing advanced high-quality, high performing, user friendly, innovative devices. Apple carefully selects a product range that meets market demand, consumer preferences, and their brand strategy.
Brief Background about the Company / Industry:
Current Status:
Stock Price $178.99, Market Cap $2.8 trillion, Revenue in 2022 $394.3 billion. Apple is a company that is known to offer a diverse range of products and services between different categories such as as iMac’s, iPad’s, Apple Watches, MacBook Pro’s, MacBook Air’s, Airpods, accessories, macOS, iOS, watch OS, Safari, iTunes, Apple music, iMovie, Final Cut Pro, etc.
Future Growth:
Apple is increasingly focusing on India as a growth market, with plans to expand its retail presence and manufacturing capabilities. The company aims to reduce its dependence on China and is actively diversifying its supply chain, with India playing a crucial role. Apple continues to innovate with new products and services, potentially entering emerging industries like augmented reality (AR) and electric vehicles (EVs).
Trends impacting the industry:
5G
Privacy and Security
Sustainability
Remote Work and Learning
Augmented Reality (AR) Technology
Electric Vehicles (EVs)
Global Supply Chain Shifts
Why I found the article Interesting:
The article provided valuable insights about Apple opening two retail stores in India as part of its efforts to expand in the country.
The importance of leveraging India which is the second-largest smartphone market globally, accounting for almost 12% of the global market.
The article showcases how Apple is looking to diversify its assembly of products away from China due to tensions and supply chain disruptions.
The article also highlights that India is seen as a major growth driver for Apple in the coming years, but analysts believe it could take as long as a decade for India to become a significant production hub for Apple. More physical Apple stores are expected to open in India since the Indian middle class is becoming more affluent, leading to increased iPhone sales and India is increasing their 4G availability which is contributing to smartphone sales.
The article reassured me that I have made the right choice by opting for a tech brand that prioritizes innovation and quality, which I use daily for various tasks and activities.
Recommendations / Advice for the Retailers / Marketers:
Focus on India's Growing Market
Leverage Physical Retail Stores
Highlight & Emphasize Affordability
Diversify Product Supply Chain
Consider Local Manufacturing Partnerships
Promote 'Make in India'
Maintain Premium Brand Image
Explore Product Diversification
Expand Physical Store Presence
Cater to Urban Demographics
Monitor Trade Tensions
Diversify Supplier Base
Engage with Indian Government
Explore Market Expansion
7
3 Discussion Questions:
How significant is India's role in Apple's efforts to diversify its supply chain away from China?
What challenges and opportunities do other tech companies face when trying to penetrate the Indian smartphone market?
In what ways can Apple adapt their product pricing and marketing strategies to better compete in India's smartphone market, given the significant price difference with iPhones?
Works Cited & Thank You:
Links to the articles:
Jacob, Charmaine. “Apple Bets Big on India, but Will Still Rely on China for ‘years’ to Come.” CNBC, CNBC, 20 Apr. 2023, www.cnbc.com/2023/04/20/apple-years-away-from-diversifying-from-china-despite-india-expansion.html.
Mandavia, Megha. “For Apple, India Is the next China.” The Wall Street Journal, Dow Jones & Company, 11 Apr. 2023, www.wsj.com/articles/for-apple-india-is-the-next-china-7dee47c.
Wen, Philip. “China Finally Has a Rival as the World’s Factory Floor.” The Wall Street Journal, Dow Jones & Company, 29 Aug. 2023, www.wsj.com/world/india-china-factory-manufacturing-24a4e3fe.
https://www.businessofapps.com/data/apple-statistics/
