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Friday, February 11, 2011

Is India A Dumping Ground For Apple Products?


Apple is launching iPad in India – 9 months after the launch of device (in the US market) and 3 months before the launch of next generation iPad, i.e. iPad 2.

While there is no confirmation from Apple on the India launch story, the price of iPad in India will start from Rs. 26,000.

Coming back to the title of this article, i.e. whether Apple considers India to be a dumping ground, a perspective to be kept in mind is how a product/technology evolves.

The last portion, i.e. Laggards is where Apple probably puts India (in terms of country profiling, i.e. we are conservative, do not have enough appetite for luxury iProducts etc). To throw certain perspective, Apple did the same with iPhone 4 – i.e. ‘dumped’ iPhone 3GS in Indian market, before the iPhone 4 launch (i.e. get rid of the inventory).

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Argument For (i.e. Apple shouldn’t look at Indian market).
The mass doesn’t have buying capacity (or rather spending interest) to buy an iProduct. After all, India is still a developing country and hence, Apple shouldn’t be bothered about the Indian market (needs a lot of customization, i.e. McDonald need to sell McAloo!).

Argument Against (i.e. Apple should consider Indian market on an equal footage).

Harley Davidson has entered India. Starbucks is entering India. GetJar suggests that India is among the top country in terms of app downloads.

Essentially, India is happening and given the income range, there still is a huge market for ‘luxury’ products in India (i.e. considering iPad as one). Moreover, emerging markets will drive the necessary growth in the coming days and Apple needs to setup an organization structure (i.e. distribution/support/sales etc) in Indian market, before Android takes over.

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Traditionally, Apple has ignored India (the apple store was down for almost 15 days!), but it’s time Apple revisits it’s India strategy (they earlier shutdown the India support office, owing to backlash regarding outsourcing et al).

With 3G launch in India and aggressive distribution strategy adopted by Samsung (for Galaxy Tab) and rising of Notion Ink’s Adam (from Indian soil), do you really think Apple should continue to ignore the Indian market? I mean, I was really disheartened when I saw ‘Apple Launching iPad in India’ story and imagined what impressions would our US counterparts (bloggers/media etc) would carry about the Indian market (land of snakes?).


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