I love India, but I believe that Apple has some higher potential in the intermediate term in some other countries. That doesn’t mean that we’re not putting emphasis in India — we are. We have a business there; that business is growing, but the multilayer distribution there really adds to the cost of getting products to market. So we’re going to continue putting some energies there, but from my own perspective, in the intermediate term there will be larger opportunities outside of there.
Apple’s emerging market focus seems to be primarily on China right now, which isn’t a bad strategy. With many of India’s phones priced significantly lower than Apple’s iPhone, the company may not be able to tackle the country head on.
Out with the old
The news of Apple taking the No. 2 spot is certainly promising for the iPhone maker. India is one of the fastest-growing mobile markets and the company’s increased distribution in the country will help not only iPhone sales but possibly iPad sales as well. Apple investors should really be hoping for a cheaper iPhone, though. That’s the only way for the company to dominate in India’s smartphone market.
If Apple Inc. (NASDAQ:AAPL) refuses to release a cheaper iPhone for emerging markets, investors can only hope that enough consumers in the country will pay for full-priced iPhones on payment plans. That may have helped push Apple to No. 2 in India, but it’s not a good long-term plan.
The article Apple’s Growing in India, but Can It Continue? originally appeared on Fool.com and is written by Chris Neiger.
Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.
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