What are you what are you seeing right now?
Yes, I can hear you. I can hear you.
Sorry for the delay, but I enjoyed your conversation on any of us.
Is China now? The store behind me marks the first
Apple store in India. It's in the Banjo Covid complex central
business district of Mumbai City. So just down the road, you have the
headquarters of some of his top banks, this leading stock exchange.
The National Stock Exchange and the market regulator, SEBI.
It's a great location, but you can see the store from the main title Fair or
the main road. The stores inside the Jewel Mall deal
is, incidentally, a brand and a retail chain owned by Indian billionaire Mukesh
Ambani underlines industries. Now, this store has about 100 staff for
lease solar power as most Apple stores and now zero carbon footprint.
And you'll find all the features that you find an Apple stores worldwide.
So you've got, you know, today at Apple, Apple trading, all of that going on
inside this store, which, by the way, is preparing to open its doors in a couple
of hours from now. And we hear that Tim Cook will be here,
as is customary, interacting with employees on the first day of the store
and also possibly standing at the front door.
You see behind me welcoming early guests.
There are about 20 to 40 people in line. It isn't very crowded as yet this
morning. But let's remember, it's still only 830
a.m. in India.
And we're not very early risers. This is the first of two stores.
The second store comes up in Delhi in a couple of days from now.
But as you've been discussing, this isn't really about stores.
You know, when it comes to Apple in India.
Right. This is more than just stores.
This is a much bigger retail relationship with India, of course.
But more importantly, a manufacturing relationship with India.
NIKKEI. Okay.
And you just alluded to this. But, you know, the answer is it goes
well beyond sales for Apple, doesn't it? I mean, it's also about a showcase and
perhaps a message to the country as well.
Yes, to all of that riche, I mean, Apple is so tiny in India, right, 4 percent of
India is over 700 and 700 million smartphone users use Apple.
And I know we scoop the revenue number six billion dollars in the last fiscal.
Which is less than a tenth of what it does in China, even though it's twice as
much as Apple did in India the year before.
So India's really tiny. Now it can expand that market if it's
able to manufacture here in India and avoid some of the very heavy import
taxes that it pays ISE for assembly. And that might help make its products a
little bit more affordable for most Indians.
But I think more importantly, this is about a longer term manufacturing
relationship as Apple seeks to diversify its supply chain away from the China
dominance into countries like India. And that fits beautifully into India.
And Prime Minister Modi's manufacturing agenda.
And is that what's in it for it for India really being able to provide that
off ramp for Apple as a manufacturing hub?
Yes, absolutely, I think everything you read about what Apple was able to do
with China. In China, right.
Transformed the high end manufacturing system creates a manufacturing
ecosystem. Shery Ahn millions and millions of
employees and build incredible supply chain efficiencies.
India is hoping Apple will be able to duplicate, if not all of that to some
extent. Some of that here in India.
And that fits in with Prime Minister Modi's rather ambitious Make in India
programme. You know, three of Apple's contract
manufacturers in India are two of them are participating in a production linked
incentive program, and they are far ahead in being able to win incentives
under that program. It's an ambitious program launched by
Prime Minister Modi. So, yes, it does fit into the broader
India agenda.