Tuesday, May 17, 2016

Apple CEO Tim Cook to visit India this week to meet Prime Minister Narendra Modi


Apple CEO Tim Cook will visit India this week and meet Prime Minister Narendra Modi on the second leg of his Asian tour, two sources familiar with the matter said, as the company seeks to revive sluggish iPhone sales.

The visit is Cook's first to India as the head of the U.S. technology company, one of the sources said. It was not immediately clear whether he would discuss importing refurbished iPhones with officials in New Delhi.


A second source said India was keen to know if Apple had plans to set up production facilities for the local market, which would be a boost for Modi's "Make in India" manufacturing push.

In an interview earlier this month, Mr. Cook had said Apple sees a “huge market potential” for its products in India and that it is “really putting energy” in the country.

Apple has also sent in a proposal to the Indian government for selling refurbished phones in India. However, no official call has been made on the matter.

Addressing analysts in a conference call, Mr. Cook had said that India presents a “really great opportunity” but slow networks and the informal retail structure across the country is holding the company back from realising its full potential.

Cook could also announce its Make in India plans along with partner Foxconn. The Chinese electronic manufacturer is reportedly scouting locations in Maharashtra where it could set up a plant to manufacture Apple’s devices. 

While its sales in China, its second-largest market after the U.S., fell 11 per cent, in India iPhone sales were up 56 per cent from a year ago.

More than 100 million smartphones were sold in India last year and the market is expected to grow by 25 percent this year, making India one of the fastest growing smartphone markets in the world.

Samsung led the India smartphone tally with 29 per cent share. Other top players included Micromax (17 per cent share), Intex (10 per cent), Lenovo (8 per cent), Reliance Jio’s Lyf (7 per cent) and Karbonn (5 per cent).

According to the report, Apple in India recorded a stellar 62 per cent growth in the first quarter from the year-ago period, though on a lower base.

Apple’s Make in India plans, the setting up of Apple Stores and also inaugurate the company’s first technology development center in India. Ahead of his visit, information on the Apple Store plans have surfaced yet again, and reports also claim that Cook is likely to announce an accelerator program for Indian startups.

The report on ET states that Cook is keen on participating in PM Modi’s Startup India and Digital India initiatives. In line with this, he is likely to announce an ‘accelerator or incubator program for startups in India’. While details are scarce, the move is expected to encourage developers and entrepreneurs to come with unique ideas for apps and services built for the iOS platform.

As for the information on Apple Stores, it is but an extension of what is being reported for the past couple of months. The company is expected to set up three stores in Delhi, Bangalore and Mumbai within the next 18 months. Reports claim that one of the stores in India will look like the iconic Fifth Avenue Apple Store in New York City. The stores are expected to cover a floor area of around 3,000 square feet, and some might even be so big as to cover around 10,000 square feet of space. These stores will have space for tech support and small workshops, and will require an investment of anywhere between $3 million to $5 million (Rs 20 crore to Rs 33 crore approximately).





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