AAPL Stock: The Next Billion Dollar Opportunity For Apple Inc

The Cupertino based company is in talks with the Government of India to manufacture Apple products in India. The company is asking for the relaxation of several local laws and import tax exemption for fifteen yers. While the talks are still on, Apple has decided to go ahead with the assembly of iPhone SE in the country. According to reports, Apple's partner Wistron is expected to handle iPhone SE assembly at its facility in Bangalore. Assembling iPhone SE in India could lead to a cost saving of up to 20% which could help in lowering the price. Apple is also seeking permission to sell refurbished phones in India. The company's earlier request to sell refurbished phones was denied due to the concern that India may become the dumping ground for used electronics. If Apple gets the permission, it will be able to sell newer models at much cheaper prices, helping it to increase its market share.


With the slowdown in iPhone sales in China, Apple has increased its focused on China's southern neighbor, India. India is the second largest smartphone market with a strong growth potential which could provide reasonable growth opportunities for Apple. The main factor which is holding Apple back in India is the pricing of iPhones. To address the pricing issue the company is planning to start manufacturing in India which will lower its cost of production and also taxes. Apart from pricing, another factor which could impact iPhone sales in India is competition from Chinese manufacturers. The same companies (Oppo, Vivo, Xiomi) which ate into Apple's market share in China, dominate the Indian smartphone market. It remains to be seen how Apple will tackle them in India. If Apple could crack the Indian market, it could become one of its strong growth drivers.

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Disclosure: Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a ...

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