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To Gain Foothold in India, Apple Plans To Open Stores, Offer Deals All Year Around, and Fix Services: Report (bloomberg.com)

Apple has long struggled to gain market share in India, the world's second largest smartphone market. But now, it apparently plans to change that. Before we get into it, here is some disclaimer: Rumors of Apple's intentions to improve its presence in India are nearly as old as Apple's existence. From Bloomberg: Instead of officially lowering its prices, Apple is in talks with retailers and banks to offer holiday deals all year round, according to people familiar with the plans. Those people say Apple is also asking some individual stores to more than quadruple sales targets, to 40 or 50 iPhones a week, and plans to cut off retailers that consistently fail to hit the mark. Retail sales staff will be trained to teach customers how to use their devices, and Apple intends to overhaul in-store branding and product displays. Executives would conduct daily conference calls with stores to gauge progress.

Apple hopes to start opening stores in India next year and eventually set up three in New Delhi, Bengaluru (formerly known as Bangalore), and Mumbai, according to the people familiar with the company's plans. The government has long required foreign companies opening shops to manufacture 30 percent of their products locally, but it said in January that businesses can reduce that requirement by sourcing more Indian goods for their global operations. Apple now builds some of its India-aimed iPhone SE and 6s models in Bengaluru; it's unclear whether the company plans to take advantage of the revised policy or try to hit the 30 percent mark.
The report adds that Apple has India in its mind as it revamps many of its services.

87 comments

  1. That's a hard sell by Opportunist · · Score: 3, Insightful

    Ya know, India is one of those places where people need the stuff they buy first and foremost to accomplish something, not as a fashion statement. It's kinda very "western" to have money to squander on "ohh, shiny!".

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    1. Re:That's a hard sell by AmiMoJo · · Score: 2

      Speaking of the west, I wonder how they will prevent people buying those phones cheap and exporting them?

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    2. Re:That's a hard sell by JaredOfEuropa · · Score: 2

      You'd be surprised. Indian people buy stuff to show off as well; what may be different is the stuff they buy to show off with and how much they spend on that. I deal with a good many Indians; granted these are the more affluent expats, but they invariably carry a late model iPhone or upmarket Android device.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    3. Re:That's a hard sell by AvitarX · · Score: 1

      I'm not convinced.

      I know a few Indian people who've purchased Audis when only going to be here a few years.

      --
      Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
    4. Re:That's a hard sell by phantomfive · · Score: 1

      There are a lot of Indians I've met who seek after fashion statements. In some cases, living in bare empty houses so they can afford to make payments on their BMWs.

      Also, don't be deceived: there are also a lot of really rich people in India. It's not all poverty.

      --
      "First they came for the slanderers and i said nothing."
    5. Re:That's a hard sell by Opportunist · · Score: 3, Informative

      Same way other companies do it. With region locking, warranty voiding and bribing governments to put tariffs on private imports but not their own.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    6. Re:That's a hard sell by Opportunist · · Score: 1

      Maybe because they retain a high resale value compared to other cars?

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    7. Re:That's a hard sell by Anonymous Coward · · Score: 0

      That surely explains the Lamborghini, Porsche, Audi, BMW, Mercedes, Range Rover, and Lexus dealers in Bangalore. And probably in many other big cities in India.

      IOW, spoken like someone who doesn't know India and has never even been there.

      OTOH, the last time I was there, someone mentioned that a mere 4% of Indians have an income high enough to have to pay income tax. There is a huge (or as Twitler would say YUGE) income disparity.

    8. Re:That's a hard sell by Anonymous Coward · · Score: 0

      Every country has people with more money than sense.

    9. Re:That's a hard sell by AvitarX · · Score: 1

      So an Audi has such great resale value and reliability that the cost per a year of owning one for two years is better than something like a three year old Accord?

      --
      Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
    10. Re:That's a hard sell by Anonymous Coward · · Score: 0

      That's not really the issue with implementing an Indian style feature phone in the U.S. (there isn't nearly as much as a barrier in Europe). The main issue has to do with network age and frequencies. India and most of Europe still have 2G networks up, and most of the feature phones are built for them. America did away with 2G about 5 years ago, so none of those phones will work here. The 3G and 4G frequencies used by most of these phones are understandably geared for the markets they're primarily bought in. It's extremely difficult to find a well made feature phone that will work with U.S. frequencies; the current best exception being the Nokia 3110, which will work on AT&T and TMobile's GSM based networks.

    11. Re:That's a hard sell by AmiMoJo · · Score: 2

      That would be something new for Apple then. As it is if you buy an iPhone in say China it comes with the same software as one bought in Europe and one bought in the US. You can change the language to English, get all the software updates etc. when using it outside China. App Store uses geolocation to restrict your selection of apps, changes when you physically move the phone somewhere else.

      I think even the 4G bands it supports are the same world wide.

      This does have the advantage that if your phone has an issue you can go to any Apple Store in the world and they can either fix it or swap it for a referb. Maybe the cut-price Indian models won't support that.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    12. Re:That's a hard sell by Anonymous Coward · · Score: 0

      India is not so stupid. So Apple opened gold plated screwdriver shops. 30% local content my ass. No doubt the big shopfronts will have to import Apple 'sales' tools. If they get caught gaming the system, there will be trouble

    13. Re:That's a hard sell by Anubis+IV · · Score: 1

      It's a hard sell among the regular population, but Apple makes products for the high-end of the market. Provided there are enough people capable of buying their products, they don't need to worry about making things affordable for those who can't. With around 1.3B people living in India, even if only the top 5% can afford Apple products, that's still 65M people, which is far larger than some of the markets Apple has already gone into.

    14. Re:That's a hard sell by Anonymous Coward · · Score: 0

      Im sure apple is pouring millions of R&D into solving that problem right now.

    15. Re:That's a hard sell by Digital+Mage · · Score: 1

      What the hell are you talking about?!? India is one of the largest consumers of gold primarily used in local jewelry (https://www.thehindu.com/business/india-gold-demand-seen-rising/article23763376.ece). Its pretty common to see trucks, cars and tuk-tuks blinged out with all sorts of decorations. If anything the iPhone style is too western in its minimalist style. I'm sure the gold phone will sell like hotcakes and if they can have one with 10 colors on one phone that will sell to.

      Now you would be correct if Apple were to open a store in an Amish community.

    16. Re:That's a hard sell by lordlod · · Score: 1

      LOL

      • India consumes 25% of the world's jewelry with 7% of the world's GDP.
      • India is the world's largest consumer of gold and the consumption of gold has been increasing at roughly the same rate as income.

      You would be hard pressed to find a country in the world which was less interested in shiny.

  2. survival as a service by Anonymous Coward · · Score: 0

    make your payments, stay in your lane, you're ok? wtf

  3. India and overpriced jewlery. Such a nice fit. NOT by Anonymous Coward · · Score: 4, Insightful

    Because when all you have is $1670 a year (median income), then surely, we can expect everyone to invest a $1000 for the privilege to whore off all their biometric data to a bunch of psychopaths, using a shiny trinket that contains electronics more as a second thought than as a function. --.--

    I hope they try, and lose a fuckton of their imaginary money in the process.

  4. Re:India and overpriced jewlery. Such a nice fit. by JaredOfEuropa · · Score: 1

    whore off all their biometric data to a bunch of psychopaths

    Is that something I missed in Apple's quarterly report?

    --
    If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
  5. market research much? by sad_ · · Score: 1

    Did Apple even do market research on why they don't get a big foothold in India?
    I'm sure the things they've now come up with were not in the top things to change.
    This is a market where even $50 android devices have a hard enough time.

    --
    On a long enough timeline, the survival rate for everyone drops to zero.
  6. pope refuses to bargain with gargoyles by Anonymous Coward · · Score: 0

    circling over cairo, watching the roads melt,, the birds have offered, using the flying monkeys as interpreters, to stop whatever they're doing? if the vatican comes clean on the altered boys thing? how does one bargain with gargoyles?

  7. I hope they fail miserably by Anonymous Coward · · Score: 2, Insightful

    Apple is the largest most valued company in the world, not because they have the best products or most customers, but because they have the most shrewd and aggressive business tactics.

    This is a stark contrast in India, a relatively poor country still emerging on the world economy.

    It's disgusting to think that this is where Apple set their sights, to sell their luxury phones at $800 -- $200 for hardware and $600 for Apple logotype, and similar pricing.

    Apple knows there's a "gotta have it" mentality about their stupid products, and when they start marketing that to a poor population...

    American greed and capitalism at its finest.

  8. Listen to me, I am Indian... by Daneel+Olivaw+R.+ · · Score: 3, Interesting

    You are all wrong. As much I want apple to crash and burn, Indians (living in India) love it and consider it as status symbol (dont ask me why, damned if I know) Median income is not a good metric, on average someone IT need to save 2-6 months salary to get new iphone and many are stupid enough to do just that, and we have lot of people in IT.

    1. Re:Listen to me, I am Indian... by Anonymous Coward · · Score: 0

      I assume this is because the cost of living is much much lower, so for those on a good salary they have a much larger disposable income than in the west, relatively.

    2. Re:Listen to me, I am Indian... by Anonymous Coward · · Score: 0

      Actually, it is not just people in IT only. Anyone who can get a deal on an iPhone - even a shady one, will take it. Indians are just as shallow and pretentious as any human being around the world. This should work for Apple. The local Apple partner retailers already seem to be doing good business, this move should push more iPhones to people. We have already become consumerist and don't really give a fuck whether we can manage a proper meal, but we need our online vanity fixes - and so we have the "Bobs and Vagene" comedy.

    3. Re:Listen to me, I am Indian... by bhatji · · Score: 1

      It is a fact, India is a country with a large and extremely diverse population, the scale of operations are different. There are people of all shades in this country too. Given the right carrot, many would like to possess an Apple device. The ones who do not mind the current price and service levels already possess an apple device right now. The challenge for Apple now would be to gain the mind share of the ones who are more value conscious besides trying to get the Enterprises holding back as the Enterprise Support from Apple is not available in the country, which raises costs for these Enterprises.

  9. India is not EU or America by Anonymous Coward · · Score: 0

    Apple has a marketing problem, they have always sold boutique products to people with money to afford them. Now they enter countries with far less wealthy populations and they have little success. Of course Apple isn't suffering because it has managed nicely selling to people who don't mind the stiff margins Apple sets on its products. Unless Apple starts making really affordable iPhones I don't think they have a chance in places like India.

    1. Re: India is not EU or America by spinitch · · Score: 2

      US and EU have an ample supply of used iPhones for more thrifty consumers. India does not welcome used devices. While Apple may covet the large growing India consumers , Apple does not want to cannibalize its lucrative high tier models outside India either, so the market share will be slow developing.

  10. Re:India and overpriced jewlery. Such a nice fit. by Anonymous Coward · · Score: 2, Insightful

    It's a cultural thing. For centuries, Indians have aspired to have a lot of jewelry. Families pass on these jewelries down the line. Whenever they gather for an Indian wedding or something, you will see them wearing a ton of it. It's a matter of pride for them. Smartphones, as someone pointed out above, is not that. It's a commodity for Indians. Most of them don't see a point in getting the latest iPhone feature. They want a phone to keep in touch with their family and friends, and mostly, to colleagues. Sure, not everyone is cut out with the same cloth. There are more than 1.3 billion people in India. Most of them earn under $1,600 in a year. They buy a phone and put a cover on it, a tempered glass and everything so that it can last for more than at least two years. In general, Indians are also very price sensitive. So it is not uncommon to find a businessman who makes thousands of dollars each month to use an iPhone 5s.

  11. Re:They need basic skills first by Anonymous Coward · · Score: 0

    Butthurt American is butthurt. Indians on H1B visas run your technology sector, because you're too stupid to figure it out on your own. Get over it.

  12. Re: They need basic skills first by Anonymous Coward · · Score: 0

    That would be why I'm constantly having to correct their errors and show them how things actually work... H1B are lowlife breeders with no real value to the world. Other than as an example of how to be worthless.

  13. Re:Actually, it's very American. by Opportunist · · Score: 1

    I usually write Lëtzebuerg. Ok, not necessarily when the rest of the text is in English. ;)

    This aside, you're right. Wanting to show off wealth is mostly common (in Europe) with people who actually have none. The proverbial ghetto car is the BMW "3er series", usually running on leasing because, well, buying is beyond reach. Same with cellphones.

    But with the latter it's changing. Mostly because there is no "more" in that area. You can of course buy a cell phone made from 24karat gold with diamonds, but that kind of flashy show of wealth is not very "European". Here, you rather show wealth in status symbols that are expensive but don't look it, it's more an "in-joke" for the rich and those that wanna be. Take a look at a Bentley Mulsanne, it doesn't look flashy (personally, I think it's ugly as sin), you don't get to see a lot of its luxury, but if you know what it is, you know that it's prohibitively expensive and whoever owns one has money to burn. Literally.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  14. Re:They need basic skills first by Anonymous Coward · · Score: 0

    Lol, have you ever worked with H1Bs? They don't run shit cause they're mostly incompetent.

  15. I assumed that would be obvious. But I'll explain: by Anonymous Coward · · Score: 0

    1. The thing takes a biometric scan of your face and/or your fingerprint.
    2. Access to that data will be given to everyone at Apple, of course, plus everyone from any three-letter agency and isn't stupid enough to allow them to make it public. Plus they officially said they let app developers access it anyway. So in practice, pretty much everyone who wants.
    3. "People" give away that biometric data for a mere "shiny". That is quite whory.

    4. A psychopath is a person with no empathy (unless they wilfully enable it, according to modern studies). So not your TV show "psychopath". Although "Dexter" presented it surprisingly well. ... This is particularly hard to explain to Americans without "offending" them, because it is the dominating mindset in the US, at least among the students that are usually used in studies. ... But basically the "normal" behavior and culture of businesses nowadays, is purely psychopathic in nature. Profit is all that matters. Being social and empathetic, treating others well, being fair (even to dicks) and being honest, are all out the window and even actively despised and ridiculed. (In a honest, fair world, there would be no such thing as profit only money you have actually earned. With work done to earn it.)
    5. Apple is such a business.

    Ergo "people" whore off all their biometric data to a bunch of psychopaths.

    I put "people" in quotes, because every time I treat them like actual individuals, I am attacked as if I would threaten their form of existence, and hated. I have come to accept that if they do not want to be individuals, but merely passive-thinking entities of a swarm, where that swarm is the individual, because they are too afraid to have free will and deal with anything themselves, then that is their good right. But then they aren't people anymore, and maybe not even humans. (And just because I know exactly what you are thinking now: No, that does to give anyone the right to treat them badly, or see them as inferior. It's just that that "life"-style is actively harming people who still want to be individual humans, and so we can protect ourselves from their harm. Without causing harm to them, of course, or we would be the evil ones.)

  16. "can i have some more" by Anonymous Coward · · Score: 0

    The "problem" with india is that they already have like a gazillion and one deities.
    trying to sell them one more in a used apple shape is probably asking a bit much ^_^

    1. Re:"can i have some more" by Anonymous Coward · · Score: 0

      did you mean "a byte much"?

  17. Re:Actually, it's very American. by 110010001000 · · Score: 1

    I think you guys are nuts. Europe is full of palaces and stately homes which were built not to live in, but to just show off the owners wealth. Most luxury brands come from Europe. I get that you guys don't like "brown people" coming into your countries (like Luxembourg), but Europe is full of displays of wealth.

  18. Re: Bazinga by DontBeAMoran · · Score: 2

    Since you posted something on Slashdot, the logical course of action would be to start with yourself.

    --
    #DeleteFacebook
  19. Re: They need basic skills first by Anonymous Coward · · Score: 0

    Is that why companies like Apple, Facebook, Microsoft and Google are fighting tooth and nail to get as many visas as possible from the 100kpy quota? Must be.

  20. Yay the number of stolen iphones by Anonymous Coward · · Score: 0

    On ebay etc will rise dramatically

    Crime is a life style for 3/4 population of India, and they see nothing wrong with this.

  21. Re: Moderators by Anonymous Coward · · Score: 0

    This. Once the moderators finish their reign of terror against APK and drive him off, they will undoubtedly turn against other users. Moderators must be forced to stop censoring APK and impersonating him.

  22. Re: Moderators by Anonymous Coward · · Score: 0

    Moderators hate us. They want us to die. To die! Just like they hate APK and want to censor him into oblivion, they hate the rest of us as well.

  23. Indian's are materialistic too by sjbe · · Score: 2

    Ya know, India is one of those places where people need the stuff they buy first and foremost to accomplish something, not as a fashion statement.

    While I've never spent time in India I have spent a lot of time working with people from India and in my experience they are no more or less fashion conscious than any other group of people. I've met plenty of Indians who are as vain as any westerners. I don't buy the argument that Indians aren't fashion conscious. The problem is that there are a LOT of poor people in India who don't have vast sums to spend on a luxury smartphone like the ones Apple sells. Indian's have a (probably deserved) reputation for being cheap in the sense of thrifty but that doesn't mean they don't spend money on bling or aren't interested in it.

    It's kinda very "western" to have money to squander on "ohh, shiny!".

    Hogwash. I've traveled all over the world and there is no culture I've ever seen where there isn't a strong faction of people who squander money on "ohh, shiny". We're just not all that different. How our materialism manifests varies from place to place but it's still omnipresent.

  24. Re: Moderators by Anonymous Coward · · Score: 0

    Totally correct. The moderators will bury this thread to -1 in order to suppress any discussion about their censorship and harassment of APK.

  25. Every country has their showoffs by sjbe · · Score: 1

    According to the Americans here in Germany, whose "vlogs" I follow, this is only an American thing, and in most of Europe, people are far less materialistic.

    The particular manner in which materialism manifests varies from country to country but if you need evidence that Europeans are materialistic one merely has to look at places like Versailles. They have literal freaking palaces and you're going to argue that they don't care about showing off wealth? How many of the major fashion brands are European brands? Paris and Milan are two of the major fashion centers in the world. There are plenty of people in every country on Earth who are materialistic and want to show it off. The only difference is how they go about it.

    The only people I ever see act like that, in Germany, France, Belgium, Luxemburg*, Austria, Switzerland, and Spain (so the countries where I was more than a month of my life), are usually the poor immigrant / ghetto type, and even of those, only the sub-group that listens to gangsta rap featuring such "bling" in their videos.

    Showing off wealth comes in many forms. Just because some Europeans use some of the less gauche ones doesn't mean they aren't doing it. If you have a yacht in the harbor in Monaco you're showing off your bling. So is buying a fancy purse or expensive shoes.

  26. Once they have a foothold, of course, they can break services, close stores, and offer deals only at 2:30AM on days ending in W.

  27. Re:Actually, it's very American. by Opportunist · · Score: 1

    You will also notice that this is a thing of the past, and that these buildings to show off wealth are a relic from times when aristocracy tried to outdo each other in a show of wealth and extravaganza.

    Maybe the fact that many countries wiped those aristocrats off the map, along with a culture of modesty, rooted in protestant religions that tried to demonstrate a contrast to the opulence and show of wealth and splendor of the Roman Catholic Church, especially in northern Europe, led to a culture where showing off your wealth is simply not en vogue anymore.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  28. sign of the end of an era? by Anonymous Coward · · Score: 0

    Many products crater when the company turns to marketing gimmicks instead of innovation E.g., Nokia was starting to implode when they marketed a wide choice of colors as their new "feature." Many more examples are out there - supply your own, Of course, there are often false starts: I thought Apple was dead when they acquired crap-bling Dr Dre headphones...

  29. Skip India by Anonymous Coward · · Score: 0

    It's full of poor people. Not worth it for Apple. Jobs knew India was shit.

  30. Re:They need basic skills first by Anonymous Coward · · Score: 0

    Don't forget the rape culture and literal twitter lynchmobs.

  31. 1% of 1,355,000,000 = 13,550,000 by knorthern+knight · · Score: 1

    Assuming the Iphone is targetted at the top 1%, there are arguably more customers in India than US or EU. Just like Mercedes, etc, Apple doesn't care about low sales numbers as long as they get high profit numbers.

    --

    I'm not repeating myself
    I'm an X window user; I'm an ex-Windows user
  32. Re: Actually, it's very American. by Anonymous Coward · · Score: 0

    Luxembourg.

  33. Re: They need basic skills first by Anonymous Coward · · Score: 0

    Its because they're cheap idiots and where they're being paid only 100k/y they're below the poverty line still.

    It's easy to hire and sucker them because they're living cave people. Of course they're easily taken advantage of.

    I've worked with plenty H1B. They're page turning walking command prompts with flimsy grasps on the technology they're supposed to be experts with.

  34. Re: They need basic skills first by Anonymous Coward · · Score: 0

    There are plenty of low-IQ Americans who are willing to work for $50kpy, or even less. A very large supply of people like that, in fact. Yet these IT giants are willing to splash out $100kpy and more on Indians, Russians, Chinese, Europeans...

    You Americans _could_ get back in the game, but all you do is just eat, spend money you don't have, and watch TV. You're getting dumber and dumber each year, and you just refuse to take control over yourselves.

  35. Re:India and overpriced jewlery. Such a nice fit. by Anonymous Coward · · Score: 0

    It's a cultural thing. For centuries, Indians have aspired to have a lot of jewelry..... .

    Yes, it's a cultural thing, like the rest of your post. For centuries most westerners have generalised about Indians. Probably more so about Indians than any other culture they don't know much about, because Indian culture is quite different and because India is so big that everyone learns a few assumptions and platitudes about it.

  36. Re: They need basic skills first by Anonymous Coward · · Score: 0

    LOL. Someone is a little jealous.

    Look here, fuckwit. The USA has toppled countries simply because we felt like it. We nuked two different cities and obliterated hundreds of thousands of souls in seconds because they pissed us off. We are still the money pot actually funding the bullshit UN nonsense. Our military tech advances make most countries drool.

    You really dont want to start calling out the USA over stuff like that. We've shown we are more than capable of fucking up an opponent and wont have any qualms about it either.

  37. Re:I assumed that would be obvious. But I'll expla by bug_hunter · · Score: 1

    Like the a great philosopher once said:
    A measure of a man is which mobile phone he or she chooses. If she chooses the wrong one* then charity work, political views, family values and artistic endeavours are moot, they chose the wrong phone and have therefore condemned us all and should not be considered human.

    * Note that apparently the wrong phone stores the finger print / face data in a secure enclave designed never to be able to transmit that data off the phone (and yes I believe that because hackers managed to do a bit of reverse engineering on the software - not the data - that's run in the enclave), 3rd party apps can only access that data with the user's permission, run by a company that has consistently butted heads with law enforcement overreach.
    Also the investor/think tank group National Center for Public Policy Research that was asking Apple to give up on their sustainability plans and focus purely on profit were shut down at a shareholder meeting.

    Hey Apple isn't perfect, but, you said a lot of stuff that sounds smart but it wrong.

    --
    It's turtles all the way down.
  38. Re: They need basic skills first by Anonymous Coward · · Score: 0

    Hahahaha! You're a bunch of insecure shit-heads, and China and India has to help carry your tech sector. Those are the facts, period.

  39. Re:I assumed that would be obvious. But I'll expla by bug_hunter · · Score: 1

    On the complete off chance somebody comes back to the archives to read this I was unclear in the above message.

    The fingerprint and face data never leaves the secure enclave chip on the phone.
    Other health data (heart rate, exercise, etc) is the stuff that can be shared to third party apps only if the user allows it.

    --
    It's turtles all the way down.