China and South Korea eat 80% of India’s mobile phone market! Apple wants a piece of the pie, too? 8 OEM factories move to India

  。 Earlier in July, the minister said that as Apple’s high-end phone, the iPhone 11 had been produced by Hon Hai’s factories in India. < / P > < p > Apple has been making iPhone models in India since 2017, but it has always produced older iPhones with lower prices, such as the iPhone 6S in 2018. From the introduction at the beginning of the article, apple is preparing to distribute the main production capacity of its mobile phone business in India, while producing high-end models in India. So why does Apple speed up its production strategy? < p > < p > in recent years, due to the rise of Chinese mobile phone brands, apple is facing a lot of competitive pressure in the Chinese market and even the global market. Although apple still occupies half of the world’s high-end mobile phone market, its competitors are very aggressive. In the long run, the situation of Apple mobile phone is not optimistic. For example, Apple’s market share in China is generally shrinking. < / P > < p > at the same time, the growth of global smartphone market is in a bottleneck period. According to the data of IDC, the global smartphone shipment volume in 2019 is 1.371 billion units, down 2.3% year-on-year. With the market cake getting smaller, apple urgently needs to find a new breakthrough, and the Indian market is the breakthrough. In 2019, India’s smartphone shipment will grow by 8% to 152 million units, becoming the only major mobile phone market to grow. Apple only accounts for 1% of India’s shipping volume. For apple, India has a very broad development space. < / P > < p > the choice of India plant is also related to Apple’s demand for cost reduction. Although India has the problems of imperfect mobile phone supply chain and weak manufacturing capacity, the local cheap labor can help Apple reduce the production cost of iPhone and improve its competitiveness in the market, which will leave enough space for apple to further fight “price war” in the market. At the same time, the production of mobile phones in India can also avoid international trade risks, and avoid the “passive” rise in Apple prices, or even product boycotts. It is also related to the Indian government’s proposal that Apple’s OEM plant should be speeded up to open factories in India. Apple hopes to occupy the mobile phone market in India, but India also hopes that Apple will set up factories there to support its manufacturing industry. For this reason, India has continuously raised the high import tax on mobile phones. For example, in five months of 2018, the import tax was increased three times. The price of Apple mobile phone itself is expensive. After tax, the price is higher and the market sales are greatly affected. At the same time, India has imposed a very low tax rate on the import of mobile phone parts, which is undoubtedly to force apple to invest in factories in India. < / P > < p > this year, India has also launched a production incentive plan for mobile phone manufacturers. It may be difficult for Apple’s OEM plants to be unattractive. According to media reports, in June 2020, Foxconn and Wistron, Apple’s two major OEM manufacturers in India, applied for local government incentive plans. < p > < p > India is Apple’s hope for the next market. Although Apple will localize the production of mobile phones and reduce costs, it is still difficult to sell them well. There are two main challenges. < / P > < p > on the one hand, India’s mobile phone market is highly competitive. China’s mobile phone manufacturers and South Korea’s Samsung have “carved up” more than 80% of India’s mobile phone market share. Samsung, which occupies 20% of the market share, has also been exposed by the media that it may repeat its mistakes in the Chinese market, as can be seen from the fierce market competition. Moreover, they all have mobile phone factories in India, and their cost control advantages are almost equal to Apple’s. On the other hand, the consumption power of Indian people is weak. The income of Indian people as a whole is very low. A long time ago, data showed that an iPhone 6S is equivalent to the salary of ordinary Indians for four to five months. According to IDC, the price of mobile phones, which account for 50% of India’s mobile phone market, is below $100. So even if Apple lowers the price of mobile phones because of lower costs, I’m afraid sales will not be easy to increase. < / P > < p > in the Indian market, apple is likely to fight a “price war” to enter the market, which is also in line with Apple’s strategic transformation. At present, apple is ready to shift its revenue focus from hardware to online services. According to the data, Apple’s service revenue has increased from 9% of its revenue in 2015 to 23% now. If Apple is going to drive down the price to get a large number of Indian mobile phone users in the future, it may be a good result for apple. Iqoo5 series debut strength interpretation of “120 super full mark flagship”