The Indian government has done a huge favor to Apple by relaxing the rules that stipulate a major tech vendor to procure 30% of the components required to manufacture the device within the country. The government believes that by relaxing the rules, it is encouraging cutting edge and top end technology makers to enter the country while simultaneously encouraging them to hire local talent so that the process creates thousands of jobs for the nationals.
With this move, Apple is set to open retails locations in major cities across the country. It was depending on resellers up until now to move its products off the shelves. With the relaxations, other phone manufacturers such as Xiaomi and Huawei may also open exclusive stores that will showcase their products in the best limelight possible.
This is bad news for Samsung. The Korean giant has always been the leader in terms of smartphone phone sales since the dawn of the smartphone era and the Indians letting Apple into their house will put a huge dent in the sales figures.
In fact, Apple is even planning a refurbished program where the phone collected worldwide will be brought into the country and refurbished to be sold at a much lower price. This would put huge pressure on Samsung as the Indians lust for the iPhone but the usual high price always discourages them. Putting an iPhone within their reach would lead to huge sales for Apple. I estimate Apple to sell at least 10 million iPhone each quarter if the refurbished program comes to life.
But there’s a catch. The government has relaxed the rules for only 2 to 3 years after which the companies have to procure some components from the country. But that might be too late for Samsung. The S7 maker has to make it move and that to aggressively, else it might be a victim of its own strategy of “Good Enough Smartphone at Reasonable Prices.”