India

Apple will open its first store in India next year

Online store to launch this year

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Apple is planning to open its first retail store in India next year, CEO Tim Cook confirmed during the company’s annual shareholder meeting in Cupertino, California. The electronics giant will also open an online store in India this year, he added.

“We needed to get approval from the government to go in there ourselves,” said Cook on Wednesday, answering a question from a shareholder. He added that the company doesn’t want “somebody else to run the brand” for it.

“We wouldn’t be a very good partner in retail,” Cook added. “We like to do things our way.”

India’s laws prohibit Apple from directly selling, hence it has to rely on a range of “resellers”. This means the company isn’t directly selling to the end-user and relying on a third party. Not only does this affect the overall experience but it also makes the product more expensive.

The move comes just over six months after the Indian government relaxed local sourcing norms for single-brand retailers in the country. With demand for Apple products slowing in China — even before the outbreak of Coronavirus — the firm is hoping it can spur growth in other developing markets like India.

Experts have often accused Apple of neglecting India as a serious market. But, the tides are changing. The iPhone SE was a monumental success in developing markets and Apple is expected to launch a successor soon. Even the iPhone XR has received a phenomenal response in the country.

India

Xiaomi to donate N95 masks, protective suits to fight Coronavirus

We’re all in this together

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Smartphone maker Xiaomi has announced it’ll donate N95 masks and protective suits to state governments, hospitals, and police forces this week in India. Coronavirus has spread like wildfire across the globe and institutions are rushing to counter the fatal virus.

The N95 masks will be distributed with Karnataka, Punjab and Delhi governments, respectively. While hazardous materials suits will be given to a few government hospitals like AIIMS and St. Johns in the wake of the novel coronavirus outbreak.

Manu Kumar Jain, the Global Vice President of Xiaomi and Managing Director of Xiaomi India said they’re closing working with authorities to distribute these resources. The smartphone and television maker has become a household brand in the country and has been at the forefront of fighting the crisis.

Further, the company has also canceled business travels, external meetings, and even asked their office employees to work from home and maintain social distancing. I’ve personally been to the Xiaomi HQ in Bengaluru recently and can confirm that their standards of precaution are extremely high. Instead of shaking hands, we now do a traditional Indian “namaste” to great each other.

All Xiaomi authorized service centers are ensuring that there are not more than 4 customers at any given time through an online token system. Additionally, all Mi Home staff also wears masks at all times and keeps their hands sanitized for walk-in customers.

A couple of weeks ago, Jain urged India’s corporates to divert advertising and marketing funds to fight the crisis. India’s popular cricket tournament IPL (Indian Premier League) has been canceled and companies are known for spending hundreds of millions on sponsorships. He urged companies to do the right thing.

Xiaomi has a 28 percent market share in India’s smartphone market and has been leading the segment for almost two years now. They’ve canceled all launch events to avoid social gathering and even the Redmi Note 9 Pro series was launched via a live stream.

SEE ALSO: How to disinfect your tech from the coronavirus


As general rules, the CDC or The Centers for Disease Control and Prevention listed these to help with preventing the spread of COVID-19:

  • Stay home when sick
  • Cover coughs and sneezes
  • Frequently wash hands with soap and water
  • Clean frequently touched surfaces

Coronavirus: Where to donate

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Explainers

Here’s how India is trying to be China in the smartphone game

The world’s second-largest smartphone market has more to offer

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China is practically the world’s production powerhouse. And India wants to follow the same path. India’s Central government has approved three schemes to enable large scale electronics manufacturing and attract fresh investments worth almost INR 50,000 crore (US$ 6.3 billion) in the sector.

The government aims to provide companies a production-linked incentive of 4 percent to 6 percent on incremental sales for locally made goods over a period of five years. This not only includes mobile phone manufacturing but also assembly, testing, marking and packaging.

The other policy offers a 25 percent financial incentive for capital expenditure that goes towards “the manufacturing of goods that constitute the supply chain of an electronic product”. With these incentives, the government is optimistic that companies will come to India, contribute to progressing infrastructure, and make export-quality goods.

Inauguration of Samsung’s Noida Factory in India

According to their estimates, domestic value addition for mobile phones is expected to witness 35 to 40 percent jump by 2025, from the current 20-25 percent.

So far, companies have focused on assembling equipment like smartphones in India. A huge chunk of the components are still imported. These policy changes could act as a stimulant to locally source electrical components, semiconductors, as well as develop production clusters.

Bangalore and Hyderabad are infamous for their IT Tech Parks that house thousands of employees from IT service firms like TCS, Infosys, Accenture, and many more. Similarly, the government wants to create production clusters that can develop an eco-system of their own. These clusters can create a seamless supply chain when paired with proper land, air, and shipment infrastructure.

The timing of the announcement is what matters the most. China is embroiled in a trade war with the US for quite some time and we’ve seen how a giant like Huawei got caught in the cross-fire. Companies are skeptical about depending too much on China for production and sourcing. Hence, countries like Vietnam have witnessed a huge inflow of foreign investment from the likes of Nintendo, Foxconn, and even Samsung.

India is very much like Vietnam. A developing economy that’s on the look-out for foreign investment and enhances local production capabilities. This not only helps the government increase its tax revenue via taxation, but also provides employment. Considering the current Coronavirus crisis, it’s obvious that these plans may not materialize soon. But, as soon as the storm is gone, companies would want to find an alternative to China.

Prime Minister, Narendra Modi with Apple CEO, Time Cook

It’s reported that the alleged low-cost iPhone from Apple has been delayed due to the pandemic. Irrespective of the current health crisis, Apple has been trying to ramp up its local production in India and has done so, cautiously. India is the world’s second-largest smartphone market and every brand wants a piece of the cake. Realme and Xiaomi have been intensely fighting for supremacy, Samsung continues to lead via the offline market, and OPPO and Vivo have flooded all commercial banners with their products.

Xiaomi currently has seven plants in India, major ones being at Sri City and Sriperumbedur. It also makes its televisions in Tirupathi. Manu Kumar Jain, Vice President, Xiaomi, and Managing Director, Xiaomi India said that 95 percent of Xiaomi’s phones are made in India with 65 percent of a phone’s value being sourced locally. The government has been successful in compelling companies to make in India because it consistently kept on raising import duty on smartphones.

Samsung already has the world’s largest mobile phone factory in India that assembles top-tier variants, ready for export. We don’t know the volume it churns out right now, but their long-term investment is a precedent for other brands to take the market seriously. OnePlus has a research facility in Hyderabad where it makes software products intended for the Indian market.

Samsung’s factory in Noida, India

According to industry ICEA, the NOIDA region (a part of Delhi NCR) has close to 80 mobile manufacturing factories that provide employment to approximately 50,000 people. It’s normal today to see companies release press notes announcing new facilities across the country that’ll employ thousands of people.

Prime Minister Narendra Modi kickstarted the “Make in India” campaign five years ago to encourage foreign companies to invest and build in India. While its effects are debatable in a few industries, there’s no doubt that the mobile industry has picked up exponentially. State governments of Karnataka, Andhra Pradesh, Telangana, Uttar Pradesh, and Tamil Nadu have played a major role in establishing these clusters that symbolize progress.

Engineers are widely available in India, the country has developed multiple ports under the private-public model, and numerous airports are under construction. India is already the world’s second-largest smartphone maker, but the gap is huge. It’s about briding this. Obviously, the scale at which China produces is unmatchable. But that cannot undermine India’s efforts to be more relevant on the global stage. From a purely consumption-based economy, it’s slowly trying to turning into a production backed state.

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Apps

Disney+ rolled back in India within 24 hours

We’ll just have to wait for a few more days

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Disney+ started rolling out on one of India’s top streaming platforms, Hotstar. However, within 24 hours of its release, Hotstar rolled back Disney + for its Indian users.

In a statement to the Hindustan Times, the company has clarified that the availability of Disney+ content was part of a beta trial with a limited number of users and the official launch is still March 29.

A few days ago, we reported that Disney+ content was accessible on the Hotstar app. The app also changed its logo and splash screen to accommodate the launch of Disney+ branded content. At the time of roll-out, users were ecstatic because availability was way before the official launch date. Alas, users will have to wait a couple more weeks before directly enjoying shows like The Mandalorian.

An interesting thing to note about the brief Disney+ appearance on Hotstar was the absence of any dedicated price tiers to use the service. This meant all Hotstar Premium users could access all Disney+ content including a back catalog of popular Disney films and cartoons. We expect further transparency at the time of the official launch.

Along with the content, Hotstar’s rebranded logo has also vanished and it’s back to its original color. India’s streaming market is extremely competitive with players like Netflix, Prime Video, JioTV, JioCinema, Voot, Sony LIV, and many more. Companies are trying their best to bring onboard regional content to appeal to the wider audience.

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