Get All Access for $5/mo

Mobile-handset Makers Rejoice! #5 Prospects Once Apple Begins Making in India 'Local factories for components can work wonders such that companies don't need to depend on China for imports.'

By Aashika Jain

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

www.narendramodi.in

Puneet Narang, the man who has played key roles in distribution, consulting and operations in the UK as well as in India for the last 19 years, believes local components infrastructure in the country could change the face of telecom brands in India.

In the wake of Apple looking to locally manufacture its products, Narang says it could be to a step in the right direction to improve local market.

A distribution veteran, Narang has played the role of Vice-President of Mobile distribution at Brightstar, the distributor for Apple devices in India.

Before Brightstar, Narang headed the national channel sales & marketing division for iPhone on behalf of Redington India. He has also held positions for sales growth for Blackberry Devices and accessories in North India and iPhone primary/secondary and tertiary sales earlier.

Speaking to Entrepreneur, the graduate from Cass Business School, said local factories for components can work wonders such that companies don't need to depend on China for imports.

From an industry point of view, Narang lists #5 prospects that will arise if Apple manufactures in India.

Parallel import will stall

Definitely, there are import duties that push the prices higher. Overall prices will come down.

In 2011, when Apple started open distribution before that none of the tech products used to get imported. There is still a substantial portion of products that get imported via a parallel channel.

If our market starts manufacturing, that parallel import would completely stall.

Actual availability

The timely availability is a big issue here for direct buyers. When you order for a phone model, it taken 3-4 weeks for a product to arrive from China. If it is local manufacturing, it will be a big help for traders and retailers.

Time to market

Right now, if we try to plan a promotion on a particular model, planning has to be done before hand and things may change in the meanwhile. The time to market will definitely cut down.

Price Adjustment

If we consider smartphones in the range of Rs 20,000+, Apple is no where. By volumes, Apple would be less than 2-3 percent. But when it comes to 30,000+ category, Apple's share can easily be counted as 80 percent in metros, nothing else sells. No one buys anything else says Narang.

In the last 10 months, the Chinese companies have taken the market by storm and have given a good competition to Apple. Indian brands such as Micromax and Lava are struggling despite being great brands.

Once Apple starts local manufacturing, a level-playing field could be created which will lead to price adjustments.

Building own channel

My personal view is Apple wants to build its own channel, it's own stores. In order to establish their own channel, Apple will have to do a lot of clean up in the rest of the channels. That can only be good for the market.

Aashika Jain

Entrepreneur Staff

Former Associate Editor, Entrepreneur India

Journalist in the making since 2006! My fastest fingers have worked for India's business news channel CNBC-TV18, global news wire Thomson Reuters, the digital arm of India’s biggest newspaper The Economic Times and Entrepreneur India as the Digital Head. 
News and Trends

Battery Smart Raises USD 65 Mn in Series B to Boost EV Battery Swapping Network

Orios Venture Partners achieves a 29x return with a strategic partial exit from Delhi-based EV startup, enhancing early-stage investment success.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Money & Finance

Avoid These 10 Mistakes Entrepreneurs Make with Money

Despite the challenging statistic that only 5% of startups survive beyond five years, common financial pitfalls often contribute to their failure. Through personal observation, I've identified the prevalent financial mistakes made by entrepreneurs.

Growing a Business

How Visionary Leaders Transform Curiosity Into Groundbreaking Ideas

Lee Brian Schrager, founder of the South Beach Wine & Food Festival, discusses the spark that launched FoodieCon, his best practices for running popular food events, and why all business owners need to adapt to social media trends.

Thought Leaders

4 Steps You Need to Follow to Make It Through Any Crisis With Your Company Intact

The steps we take before a crisis define our team's future resilience in the face of one. Here's what you need to do to prepare for a crisis of any kind at any time.

Leadership

How His Personal Battle With Cancer Inspired This Founder's Solution for Patient Care

On this episode of "The Founder CEO," Michael O'Neil, founder and CEO of GetWellNetwork, discusses his inspiring journey as a leader and the transformative role of AI in healthcare.