Name: The iPhone Will Be Made In India... But Why?
Uploaded: 2020-04-06T05:24:18.000Z
Duration: 9 min 37 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

this episode has been sponsored by last past.

All right, hot news story from CNBC CNBC ever is like the verge right there.

Oh, yeah, Well covered in a couple of places, Foxconn, to begin assembling top end Apple iPhones in India in 2019.

And the reason being is because they want to avoid high tariff imported smartphones also offering cheap smartphone parts.

When you import it, it's, ah, little bit more expensive, right?

But if you actually have it in house, you know all the parts their units assemble it and sell it for cheaper, right?

So India has a unique kind of method to encouraging tech companies to bring a portion of their manufacturing process to India to employ domestic workers.

And as part of that incentive, they will eliminate certain tariffs associated with bringing complete, ready to sell smart phones into the country.

So this is important specifically because Apple and iPhone sales have kind of stagnated in India as a consequence, not just of the high price like it is around the world, but an even higher prices, a consequence of the tariffs of the tariffs that are applied to that already high price.

So an iPhone in India, it's like almost double.

Or it's 2000 bucks, a starting price when adjusted for the local currency.

And that's a That's a very expensive smartphone for any part of the world and especially expensive for India, where the average smartphone purchases around 100 and 50 bucks, and they have a lot of options as well.

There's a lot of major players who have taken India very seriously and are delivering great value at a lower price than what Apple has been able to do.

So as I understand it, Apple has been manufacturing some phones in India to get around that tariff issue.

They started with the iPhone, S E S e the six, and then now they're reported to work on the 10.

The iPhone 10 will now be assembled there, making that the most expensive, most premium iPhone ever assembled in India.

But it will be Indian workers assembling the iPhone.

What this will mean is a cheaper iPhone at the retailer for the average Indian smartphone buyer.

I was looking at some of the figures on iPhone sales in India, and previously they had shown some some pretty substantial growth from originally entering the market.

But recently it looks like it's leveled off, slow down in terms of adoption.

We have a huge audience here in the channel, huge Indian audience, and I can kind of track sort of which phones are hot and popular in that market by looking at the analytics on certain videos of the polka phone.

How hot, Very affordable, Affordable Inside of this marketplace is where Apple is starting to show some of its cracks.

Let's say, Yeah, well, there's a huge ecosystem for android and I Wes, you know what I mean?

And once you're invested in it, the chances of you switching are very, very small.

Sure, Apple has is no problem in the immediate future.

But for a company of their scale, they can't just look next year they can't look five years, 10 years.

They gotta have 50 100 years down the road, right?

And if they're doing that, then they should also be aware and effectively.

It looks like they're aware of how important those Asian markets are without that tariff associate ID, you mean the price should drop 30 40% something something in this territory.

It should become attainable for at least mawr of the population.

It's not like the other manufacturers air stopping.

In the meantime, as competition heats up with the shamisen wall ways and one plus, it's a smart clientele.

It's a very tech savvy audience in India.

They are aware of things like specifications, cameras, sensors.

They're a very educated customer in the smartphone department.

I don't think it's gonna have a substantial impact.

And I don't think the future is bright for Apple in India.

I don't think they currently have a product that makes a lot of sense for India.

And most of the action exists in that what would be considered mid range price point here somewhere around 3 $400 US or lower?

An apple has no product in that space in the product that should have been in that space.

The iPhone 10 are came in way higher than that price wise.

Now people make the argument would because of the hardware, the processor and so on.

I've been saying this about Apple or thinking this about Apple for a long time.

They've always power ties the Western market.

Fine, great, great for North America and Western Europe.

But by not having amore approachable product price wise in the rest of the world, they let other people get a massive head start.

Other companies, that is, and they've kind of priced themselves out of the game globally globally, especially in those places where people are adopting, You know, their initial platform, the place where they're going t be now for a while.

There are people today, Jack included, locked into the IOS ecosystem from that original moment.

But they're still riding that wave off that early innovation and of having the best product bar none at that point in time, and by the time begin iPhone well, you might get an iPad as well.

It's expensive In my opinion, if Apple wants to make a big play in India specifically, which I think they should, by the way I think is a very important market.

It's now our second biggest market on a channel.

As faras viewers are concerned and fastest growing people in India love smartphones.

If Apple wants a piece of that and they should, they need to come in with a $500 iPhone.

I don't care if it has to be trimmed down.

I don't care if it jeopardizes their premium flagship enterprise.

I don't care about that, all right, if I'm in there finding the boardroom, and I understand this is more complicated than it sounds.

Because, of course, Apple wants to be perceived as a luxury brand as an aspirational brand as a luxury brand.

They want all that, but I don't care anymore.

Smartphones are tools, their utilities, they're part of the modern tool kit.

Accessibility has to be there if you want your brand to be relevant, and this is just a matter of time.

Like I said earlier, if you zoom out far enough, if you expand your scope.

If you put it across 50 years or so on, you're gonna need these new users to adopt your ecosystem.

Otherwise, everyone else gonna die off me and you gray hair dead.

And that initial momentum that happened from Steve Jobs in the original iPhone It's gonna fall off.

You just can't ride that momentum forever, you know?

Everyone constantly talks about it, but there was a huge head start.

Their product was so much better than any other alternative for such a stretch of time that they really could rest on that.

But like, let's not let's not make any excuses here.

Other products have caught up and the Western market.

It's just one market, you know, and it's a slow.

It's a market that's slowing substantially there.

We already talked in the past about smartphone fatigue and how people are pretty happy with smartphones they've had or that are currently in their pocket.

Apple decided to stop reporting their sales figures, presumably because they have some degree of insight into the fact that fewer people are prepared to upgrade to the premium models.

Yes, it's Apple Yes, it's a big, high profile brand, so these types of reports are going to emerge.

But the Indian, this India thing is for real.

Otherwise, Apple wouldn't have done what they're doing.

If they weren't interested or concerned about that market, it'll they wouldn't take him up on this offer to bring the portion of the manufacturing there.