Apple's Outlook For India
Tim Cook, when asked in the Q3 earnings call about why Apple hasn’t been more successful in India:
I love India, but I believe Apple has some higher potential in the intermediate term in some other countries. That doesn’t mean we’re not putting emphasis in India, we are. We have a business there and it’s growing but the multi-layered distribution there really adds to the cost of getting products to market.
I believe the high cost of Apple products in a price-conscious nation like India is a huge factor that is crippling Apple’s growth. I’ve often wondered as to why Apple products cost more in India than, let’s say, the US. One reason that I know of is that the Indian Government levies a duty of 12% + 5% VAT on laptops. However, just the taxation itself cannot justify the significantly higher price. Today, Tim Cook mentioned another reason - multi-layered distribution.
P.S. I’d like to see an Apple Store coming to India soon.
