Love at first byte: The tale of Apple in India
Over 150 outlets across India opened their doors to Apple lovers seeking the iPad 2, with the firm reporting a 'phenomenal' initial response from customers. The iPad 2 went on sale in countries across Asia on April 29.When Steve Jobs introduced the iPad to the world last year, every tech and gadget lover on this planet wanted to take the beautiful new tablet to bed. But Indians had little to cheer about. They weren't about to get lucky.
Officially, the iPad wasn't going to reach our shores till a good nine months after all the cool kids in the developed world were shooting off emails with "Sent from my iPad" signatures.
So, you can imagine -- major sulk here in the subcontinent.
However, last month when Apple announced that the second generation iPad 2 would be available in India along with Hong Kong, Israel, Korea, Macau, Malaysia, Philippines, Singapore, South Africa, Turkey and UAE -- all at the same time -- almost every tech-savvy consumer in India hoped the era of restricted friend relationship status was over and, perhaps, maybe a long-term commitment was on the horizon?
Rewind: Apple in India pre-iPhone
era
Before 2005, Apple in India meant the Macintosh.
It was a novelty computer used either by celebrities or prosumers (professional consumers) like photographers, designers and other creative professionals.
But when Apple launched the iPod here and released variants to fit every pocket, it instantly became a mass gadget.
The launch of the iPod transformed the perception of Apple in India, from a computer giant into a consumer electronics company.
In April 2006, a dream relationship looked to be beginning as Apple opened an office in Bangalore, its first center outside its Cupertino headquarters.
A startling three months down the line, that dream shattered for the 30-odd employees of Apple Services India Pvt. Ltd. along with thousands of Indians aspiring to enter a relationship with the Californian giant at some point in their careers.
Apple decided to shut shop. Boom. Just like that. No explanation.
It was a bad break-up, but business interests still lingered and on May 29 of the same year, Apple announced a tie-up with HCL Corp.,a distribution channel, to support growing iPod sales in India.
The tables turned again with the launch of a magical new mobile device in 2007.
iPhone: Coming soon ... as always
In January 2007, Steve Jobs launched a revolutionary product at the Macworld 2007 convention at the Moscone Center in San Francisco.
This was the iPhone and like the entire world, India was desperate to get hold of it.
Unfortunately, it was only available in the U.S. market and locked to service provider AT&T. The result -- terms like "Jailbreaking" and "SIM unlocking" surfaced in India.
While waiting for the official launch of the original iPhone, and before it could hit the retail shelves in India, the model was replaced by its successors -- the 3G and later 3GS in the United States and rest of world.
India felt ignored, again. And this time slighted too. Tech bloggers were peeved. And local language users cheated on Apple in India with Microsoft products that supported Indian languages.
Getting some relationship perspective
“Apple picks their markets and prioritizes their product launches, much like any major brand. It starts with the United States and then rolls out progressively to other regions. Japan, Australia and Europe have always been the primary markets for Apple. And a progressive roll-out to the rest of the world helps them manage the inventories better.”
Bhat was among the few people who had worked with Apple in India as a third-party developer. His company, Robosoft Technologies, develops 68 percent of the world’s Mac-based games.
Does a progressive roll-out policy justify an 11-month delayed launch of the iPhone 4 in India?
“In India, we wrongly compare a Mac-product line launch with an iOS device launch,“ says Manish Sharma, 39, CEO, Printo India, an ex-Silicon Valley entrepreneur and an Apple aficionado.
“Apple launches almost all its software and hardware simultaneously across the globe. I believe the reason the iPhone/iPad launch was officially delayed is because products like these require partner collaboration in the market one enters. In this case it was collaboration with the cellular service providers and the Telecommunications Regulatory Authority of India.”
“3G mobile data was a myth up until now. So how could Apple launch a product that was designed to leverage on this 3G network?”
iPad 2: By chance
or by choice?
“Our focus has very much been on China,“ says Tim Cook, COO Apple Inc. at the Q2 2011 Earnings Call last April.
“We wanted to understand that market and understand the levers there. We had some ideas about other countries as well. We purposely put the bulk of our emphasis from an emerging market point of view on China to really learn, and then we're going to take that learning to other markets.”
With the iPad 2 launching in India before China and a day after Japan, Apple enthusiasts here would speculate that India is clearly on Apple’s radar.
However, at this stage the main concern for Apple's relationship with the Indian consumer hinges on price-point.
“I don’t think iPad 2 has been overpriced in India -- the 16GB Wi-Fi only version is priced at Rs 29,500 compared to US$548.9 (US$499 + 10 percent sales tax), which is around Rs 24,500," says Bhavna Sharma, 30, a brand strategist and Apple user. “But now add import duty and sales tax and it turns out to cost just as much.”
iPad 2 is available with Apple in India in both the Wi-Fi and Wi-Fi + 3G models.
The Wi-Fi only 16GB retails at Rs 29,500, the 32GB version goes for Rs 34,500 while the 64GB version costs Rs 39,500.
Whereas the Wi-Fi + 3G is available for a retail price of Rs 36,900 (16GB model), Rs 41,900 (32GB model) and Rs 46,900 (64GB model) at Apple Premium Resellers (APR) like iStore, Maple and Croma across India.
So how significant is the improved timing of the iPad 2 launch for the Apple-India relationship?
Given the growth that they are experiencing in an emerging market like China, Apple might be preparing to address the Indian market more aggressively -- but perhaps only in the near future.
Today, they have a good presence via official resellers, the brand perception has significantly increased and more and more loyalists are coming onboard everyday.
Put in perspective, the iPad 2 India launch was a mere public kiss, a sort of acknowledgement of the other’s importance. But a firm commitment, it is not.
