We continue to see increasing costs across the board for these tech
companies. Challenges in consumer demand.
How important will India be for Apple? So India was the sixth largest market
for Apple in 2022. And, you know, it's one of the few
markets that Apple continues to see strong double digit growth in the
smartphone market. And also in the pieces.
So I think it's really important for Apple to continue its growth momentum in
this market. What are some of the products by Apple
that drive markets in India? What do consumers there like?
Obviously, it is the forms, which is the biggest seller for Apple in the market.
But then there's also the math and the tablets and, you know, some of the other
accessories that Apple is selling in the market.
And when you look at iPhones, which is contributing to their higher share in
that market, it's not only the latest iPhones that are the big Senate and the
market, but also some of get older models.
So last year, for example, in 2022, iPhone 14 did really well.
But then at the same time, we also saw a lot of CEOs off there and minus 1 and
minus 2. What does that guys want?
Well, by 2013, which have a huge attraction amongst Indian consumers.
The fact that they don't have, I guess, that early adopter status, like a lot of
the Chinese brands sell me, for example, when I was very popular there as well,
and of course, Samsung also dominating that market.
Does that matter for Apple? Or do you think that that's the type of
consumer that wants the Apple product is set apart?
Apple is an aspirational band, and we have to keep in mind that it's just
targeting God, largely targeting the premium segment.
So a lot of the market share that we see by the Chinese windows and to some
extent by Samsung, it's targeting the entry level consumers who did not have a
smartphone before and now getting onto the smartphone bandwagon.
So their shade is kind of spread across all of these different price bands.
But when we look at Apple, it's largely targeting mid to high to premium segment
in the market. What about the manufacturing footprint,
foolish? So Apple started manufacturing or
assembling in India, might get it back in 2017 and slowly it's been increasing
its manufacturing footprint. Last year, upwards of IBEX close to 5 to
10 percent off its iPhones manufactured in India.
At the same bank, we've seen Apple kind of pushing some of the tablets and
airports production in Vietnam as well. So we see it as kind of a
diversification for Apple to, you know, supplement next to China, which is their
biggest manufacturing hub for ISE was more than 90 percent of the iPhones were
manufactured in China last deal. So China will remain important.
But at the same time, we think this plus one strategy with India should reap
benefits to Apple in the long run. What is the biggest, I guess, risk when
it comes to this market, and I guess part of that is really a lesson learned
in terms of how that middle class market has developed and faded for Apple in
China. I would say it's really faded because
Apple is still kind of food is a really big share in the China market.
China was the second biggest market for iPhones last year.
So it is extremely important both from a manufacturing point of view as well as
consumption. But at the same time, we are seeing that
globally the smartphone market is slowing down.
People wanted to phone, they have a phone.
So, you know, there is only so much more room for growth.
And then the next step would be to kind of make a bigger footprint in the
emerging markets. And a lot of people still do not have
smartphones. So there is state growth.
But looking at the current economic situation with inflation being at an all
time high in the recent quarters. It's not
definite in the growth for smartphones in these regions.
But I think once the situation stabilizes, we should see growth coming
from the emerging markets.