Apple announces software development center in Bengaluru to push up its India marketing campaign

Apple’s visiting CEO, Tim Cook has announced a software development center in Bengaluru as India has emerged as the fastest growing market for the US based company. Through opening of some development facilities in India, Apple expect some policy leverage in its favor from the government for the company’s Indian plans.

Cook has reached India after a Chinese visit where the California based company has announced $1bn investment in car hail app firm Didi.

Being a high priced brand, Apple is facing a big hurdle in the Indian market because of competition from rookie smart phone manufactures. Already, other players from Korea and China are occupying the smart phone market because of the low price benefit.

Earlier, Apple’s plan for selling refurbished iPhones in India was opposed by the government.  

Last year, Apple’s contract manufacturer, Foxconn Technology has made plans to open facilities for the manufacture Apple’s iPhone in India, Foxconn has mentioned that it is aiming to develop 10-12 facilities in India, including factories and data centers by 2020.

For Apple, India is big destination because of the volume prospects. At the same time, it can’t push further without contributing something in terms of jobs. The just declared software development center and a digital map design center at Hyderabad may help it. But what matters is how it can overcome its high price tag in a price sensitive market like India.

The company has registered first decline in sales and profit this quarter since 2003. But its Indian sales have grown by 56% amidst falling income from saturated market like US and Europe.