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How Apple Can Win India Over

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Apple continues to struggle in emerging Asia

Apple’s (AAPL) problems in China, the world’s biggest smartphone market, have already been established. These issues have caused the iPhone maker to find a way to grow in the fast-growing second-largest market, India, where it has a negligible market share.

Apple’s problems in India intensified last year given the strengthening US dollar against the Indian rupee and the company’s increasing average selling price. Additionally, high import tariffs meant that the iPhone’s base model was as high as $1,400 in rupees.

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Apple may have to sell cheaper iPhones to woo Indian consumers

To negate this pricing issue, Apple is considering the local production of its iPhone X models in India. According to the Economic Times, Apple’s key manufacturing partner, Foxconn, plans to assemble the company’s top-end models in the Indian state of Tamil Nadu this year.

The move could allow the tech giant to reduce its price tag in India by avoiding import tariffs. Reducing the cost of the iPhone X or selling cheaper iPhone models in India is critical for Apple to gain market share in the country with its population of 1.3 billion.

Chinese vendor Xiaomi has seen success in selling cheap, value-for-money smartphones in the price-sensitive country. It looks like Xiaomi has its India strategy spot on. Apple may have to take a page out of Xiaomi’s book to achieve success in India, a country its CEO, Tim Cook, is still bullish about.

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