Apple responded in 2017 by contracting with a company to produce iPhones in
Bengaluru (also called Bangalore) in the south of India.
It also opened an App Accelerator in Bengaluru to teach developers how to
create apps on the iOS platform. In late 2017, Apple had created 750,000 jobs in the
“app economy” in India, according to Cook, and planned to hire graduates of a local
engineering college to work on artificial intelligence.
Apple has offered buyback incentives and lowered the price on older iPhone
models to entice more Indians to buy its devices, but the prices remain out of reach
for the average person there. The price of an iPhone 6s, for example, could pay for a
month’s rent and a year’s worth of gas as well as cover the average water or electric
bill for four years, according to a 2017
Business Insider
report.
Even though lowering prices would make its products more affordable, Apple
had to raise prices on all its models, except the locally made SE, when the basic cus-
toms duty on smartphones rose from 10 to 20 percent for the 2018–2019 fiscal period.
But apparently money was no object for Pallival, who could afford to throw
himself a wedding parade to celebrate his commitment to the iPhone X. A blurry
46-second video of his purchase went viral.
Saying “I Do” to iPhones in India
Mahesh Pallival looked like a traditional groom on the streets of Thane, India. He
rode atop a white horse adorned with colorful embellishments. Behind him marched
a
baraat
— a procession of his friends, some banging
dhol
, or double-sided drums.
There were even placards that proclaimed Pallival’s love. To any onlookers, Pallival
looked like he was on his way to pick up his bride. Instead, he was en route to an
Apple retailer to buy an iPhone X.
Pallival, whose friends had given him the nickname “Mac” because of his love
for Apple, had preordered the flagship phone and was still on the horse when the
store owner presented it to him.
This is the kind of enthusiasm Apple would like to see more of as it tries to
grow its brand community in a country poised to have the world’s largest population
by 2024. While smartphone sales have grown sluggish around the globe, the market
in India, with a population of 1.3 billion, is still growing.
As of early 2018, Apple held around 3 percent of the Indian market. CEO Tim
Cook has personally met with government officials to negotiate lower import duties
on certain components and secure permission to open Apple Stores in India. Just
as Pallival declared his love for Apple — his
baraat
ceremony included two “I love
iPhone” signs — Apple is showing its love for India.
The Indian government requires that foreign manufacturers source 30 percent
of their product domestically if they want to establish a retail presence in the country.
Apple needs to clear several
hurdles to increase its market
share in India. PHOTO: Ste Smith/
Cult of Mac
Mahesh Pallival rode a horse to
pick up his iPhone X. PHOTO:
David Pierini/Cult of Mac
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