Apple Inc. bets big on India as it opens first flagship store

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. aspiration / ˌæs pəˈreɪ ʃən / (n.) – a strong desire to have or achieve something; ambition
    Example:

    He studied medicine in the U.S. to pursue his aspirations.


  2. under-penetrated / ˈʌn dər ˈpɛn ɪˌtreɪ tɪd / (adj.) – with little competition because few companies are selling similar products
    Example:

    In most countries, the e-book market is still under-penetrated.


  3. hefty / ˈhɛf ti / (adj.) – very large in amount or number
    Example:

    Since the company had increased sales this year, everyone received a hefty bonus.


  4. timing / ˈtaɪ mɪŋ / (n.) – the act of choosing the best time for something
    Example:

    The timing of product release is one of the keys to its success.


  5. win-win / wɪn-wɪn / (adj.) – beneficial to all parties involved
    Example:

    Both companies were happy with the result of the meeting. They had a win-win­ deal.


Article

Read the text below.

Apple Inc. opened its first flagship store in India in a much-anticipated launch that highlights the company’s growing aspirations to expand in the country that it also hopes to turn into a potential manufacturing hub.


The company’s CEO Tim Cook posed for photos with a few of the 100 or so Apple fans who had lined up outside the sprawling 20,000-square-foot store in India’s financial capital, Mumbai, its design inspired by the iconic black-and-yellow cabs unique to the city. A second store will open in the national capital, New Delhi.


“India has such a beautiful culture and an incredible energy, and we’re excited to build on our long-standing history,” Cook said in a statement earlier.


The new stores are a clear signal of the company’s commitment to invest in India, the second-largest smartphone market in the world where iPhone sales have been ticking up steadily, said Jayanth Kolla, analyst at Convergence Catalyst, a tech consultancy. The stores show “how much India matters to the present and the future of the company,” he added.


About 600 million of India’s 1.4 billion people have smartphones, “which means the market is still under-penetrated and the growth prospect is huge,” said Neil Shah, vice president of research at technology market research firm Counterpoint Research.


Between 2020 and 2022, the Silicon Valley company has gained some ground in the smartphone market in the country, going from just about 2% to capturing 6%, according to Counterpoint data.


Still, the iPhone’s hefty price tag puts it out of reach for the majority of Indians.


India’s Commerce Minister Piyush Goyal said the government was in regular touch with Apple to support their business here and that the company had plans to have 25% of their global production come out of India in the next five years.


“For Apple, everything is about timing. They don’t enter a market with full flow until they feel confident about their prospects. They can see the opportunity here today — it’s a win-win situation,” Shah said.


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Only about 600 million of India’s 1.4 billion people have smartphones. Do you think Apple will be able to sell to the rest of the Indian population despite its hefty price? Why or why not? Discuss.
  • Do you think there will still be people in the world who do not have smartphones in the future? Why or why not? Discuss.

Discussion B

  • Why do you think a lot of people still purchase iPhones despite their hefty price? Discuss.
  • Do you think Apple Inc. will continue to be a huge player in the Tech industry in the next decades? Why or why not? Discuss.