Apple is reportedly reshuffling its global business management to increase its attention on India. This reorganization comes after the retirement of Hugues Asseman, who was previously responsible for Apple's operations in India, the Middle East, Mediterranean, East Europe, and Africa.
Moreover, the Cupertino tech giant is also planning to reduce its dependency on China due to continued disruption in the supply chain. Apple has already witnessed a loss in the last quarter of 2022. In recent years, Apple has been attempting to increase its market share in India, one of the world's fastest-growing smartphone markets. To accomplish this goal, the company has focused on initiatives such as:
- Lowering prices: To make its products more affordable to Indian consumers, Apple has been lowering the prices of its older models in India.
- Manufacturing locally: Apple has begun manufacturing some of its products in India to avoid import taxes and cut costs. This move has also assisted the company in meeting India's local sourcing requirements for foreign companies.
- Investing in retail stores: In 2019, the Indian government relaxed its rules for single-brand retail foreign direct investment (FDI), allowing Apple to open its retail stores.
Apple in the Indian market
During a recent earnings call, the tech behemoth stated that India had strong double-digit year-over-year growth and a record quarterly revenue. The country's record-high revenue came when the company's total sales fell by 5%.
Aside from being a significant source of revenue for Apple, India is also becoming increasingly important for the company's product development. Major suppliers are relocating to the region, and Apple is collaborating with its manufacturing partner, Hon Hai Precision Industry Co., to establish new iPhone manufacturing facilities in the country.
Q1. What prompted Apple's reshuffling of management for India?
A1. Apple views India as a crucial market for its growth, particularly given the country's rapidly expanding smartphone market. The reshuffling of management is part of Apple's efforts to strengthen its position in India and develop strategies to drive growth in the region.
Q2. What does the new country manager role entail?
A2. The new country manager will be responsible for overseeing Apple's operations in India, including sales, marketing, and product development. They will work to develop and implement strategies to improve Apple's market share in the region, increase revenue, and build stronger relationships with key partners and stakeholders.