live_tv
Livestream Starting Soon
00
Hours
:
00
Minutes
:
00
Seconds
Up next in 10
Looks like Apple will start assembling its premium iPhone X in India.
Video Sponsored by LastPass - http://bit.ly/2rIRLN9
Reports -
The Verge - https://www.theverge.com/2018/12/27/18157565/apple-expensive-iphone-x-models-assembly-india-tariffs
CNBC - https://www.cnbc.com/2018/12/27/foxconn-to-begin-assembling-top-end-apple-iphones-in-india-in--2019-source.html
Counterpoint Data - https://www.counterpointresearch.com/
WATCH SOME MORE VIDEOS...
The iPad Pro Is Bending. I'm Not Happy.
https://youtu.be/QmV-HMwDueg
Can You Spot The Notch?
https://youtu.be/ykib2NjKtA0
The Best Noise Cancelling Headphones... Bose or Sony?
Show More Show Less View Video Transcript
0:00
This episode has been sponsored by LastPass
0:02
Alright, hot news story from CNBC. CNBC, that looks like The Verge right there
0:07
Oh yeah, well. Covered in a couple of places. Foxconn to begin assembling top-end Apple iPhones in India in 2019
0:16
This is significant, Will. And the reason being is because they want to avoid high tariff imported smartphones
0:24
Also offering cheap smartphone parts. When you import it, it's a little bit more expensive
0:31
Right. But if you actually have it in-house, you know, all the parts there, you can assemble it and sell it for cheaper
0:37
Right. So India has a unique kind of method to encouraging tech companies to bring a portion of their manufacturing process to India to employ domestic workers
0:52
and as part of that incentive, they will eliminate certain tariffs associated with bringing complete ready-to-sell smartphones into the country
1:02
So this is important specifically because Apple and iPhone sales have kind of stagnated in India as a consequence
1:11
not just of the high price like it is around the world, but an even higher price as a consequence of the tariffs that are applied to that already high price
1:20
So an iPhone in India, it's like almost double or it's like 2000 bucks. Yeah starting price when adjusted for the local currency
1:29
And that's that's a very expensive smartphone for any part of the world and especially expensive for India
1:35
Where the average smartphone purchases around 150 bucks and they have a lot of options as well
1:40
There's a lot of major players who have taken India very seriously and are delivering great value
1:46
at a lower price than what Apple has been able to do
1:50
So, as I understand it, Apple has been manufacturing some phones in India to get around that tariff issue
1:57
They're manufacturing, I believe the iPhone 6. They started with the iPhone SE. SE
2:03
The 6 and then now they're reported to work on the X. The iPhone X will now be assembled
2:08
They're making that the most expensive, most premium iPhone ever assembled in India
2:14
So they'll be bringing the parts in, but it will be Indian workers assembling the iPhone What this mean is a cheaper iPhone at the retailer for the average Indian smartphone buyer I was looking at some of the figures on iPhone sales in India and
2:31
previously they had shown some pretty substantial growth from originally entering the market
2:37
But recently it looks like it's leveled off, slowed down in terms of adoption. We have a huge
2:43
audience here on the channel, huge Indian audience. And I can kind of track sort of which
2:49
phones are hot and popular in that market by looking at the ytics on certain videos
2:55
The Pocophone, remember the Pocophone, how hot that thing was? Very affordable. Affordable. Inside of this marketplace is where Apple is starting to show some of its cracks
3:05
let's say. Yeah, well, there's a huge ecosystem for Android and iOS, you know what I mean? And
3:11
once you're invested in it the chances of you switching are very very small yeah you get
3:17
comfortable sure apple has no problem in the immediate future they're selling boatloads of
3:23
phones they're making boatloads of cash that's fine but for a company of their scale they can't
3:29
just look next year they can't look five years ten years they gotta have 50 100 years down the road
3:34
right and if they're doing that then they should also be aware and effectively it looks like they're
3:40
aware of how important those Asian markets are. Without that tariff associated, I mean
3:46
the price should drop 30, 40%, something in this territory. It should become attainable for at
3:52
least more of the population. I don't know how much more. That said, it's not like the other
3:57
manufacturers are stopping in the meantime. As competition heats up with the Xiaomi's and
4:02
Huawei's and OnePlus. It's a smart clientele. It's a very tech savvy audience in India
4:10
They are aware of things like specifications, camera sensors. They're a very educated customer
4:17
in the smartphone department, at least all the people that I met. I don't think it's going to
4:20
have a substantial impact and I don't think the future is bright for Apple in India. I don't think
4:26
they currently have a product that makes a lot of sense for India. Different market, different
4:30
and appetite and most of the action exists in that, what would be considered mid-range price point here
4:38
somewhere around three, $400 US or lower. That what people are excited about And Apple has no product in that space And the product that should have been in that space the iPhone XR came in way higher than that price wise
4:53
Now, people make the argument, well, it's because of the hardware, the processor and so on
4:57
It's the same as the flagship, that's fine. It doesn't really matter though. I've been saying this about Apple
5:02
or thinking this about Apple for a long time, they've always prioritized the Western market
5:07
Fine, great for North America and Western Europe, But by not having a more approachable product price-wise in the rest of the world
5:18
they let other people get a massive head start, other companies that is
5:22
And they've kind of priced themselves out of the game. Globally. Globally
5:27
Especially in those places where people are adopting their initial platform, the place where they're going to be now for a while
5:35
There are people today, Jack included, locked into the iOS ecosystem from that original moment
5:42
But they're still riding that wave of that early innovation and of having the best product
5:48
bar none at that point in time. And by the time you get an iPhone, well, you might get an iPad as well
5:54
You're in it. You might get a MacBook. It's expensive. In my opinion
5:59
if Apple wants to make a big play in India specifically, which I think they should, by the way
6:05
I think it's a very important market. It's now our second biggest market on the channel
6:09
as far as viewers are concerned, and fastest growing. People in India love smartphones
6:15
I met them in real life. They're incredibly passionate. If Apple wants a piece of that, and they should
6:21
they need to come in with a $500 iPhone. I don't care if it has to be trimmed down
6:27
I don't care if it jeopardizes their premium flagship enterprise. I don't care about that
6:33
All right, if I'm in there, if I'm in the boardroom, and I understand this is more complicated than it sounds
6:38
because, of course, Apple wants to be perceived as a luxury brand
6:41
as an aspirational brand, as a luxury brand. They want all that, but I don't care anymore
6:48
Smartphones are tools. They are utilities. They are part of the modern toolkit
6:53
Accessibility has to be there if you want your brand to be relevant. And this is just a matter of time
6:59
Like I said earlier, if you zoom out far enough, if you expand your scope, if you put it across 50 years or so on
7:06
you going to need these new users to adopt your ecosystem Otherwise everyone else is going to die off me and you gray hair dead and that initial momentum that happened from
7:17
Steve Jobs in the original iPhone is gonna fall off yeah that you just can't
7:22
ride that momentum forever mm-hmm you know and it's kind of cliche everyone
7:26
constantly talks about it but there was a huge head start their product was so
7:31
much better than any other alternative for such a stretch of time that they
7:36
really could rest on that but like let's not let's not make any excuses here other products
7:44
have caught up and the western market is just one market you know and it's a slow it's a market
7:50
that's slowing substantially there we already talked in the past about smartphone fatigue and
7:55
how people are pretty happy with the smartphones they've had or that are currently in their pocket
8:00
they're upgrading them less frequently apple decided to stop reporting their sales figures
8:05
presumably because they have some degree of insight into the fact that fewer people are
8:10
prepared to upgrade to their premium models. Yes, it's Apple. Yes, it's a big high profile brand. So
8:17
these types of reports are going to emerge, but the India, this India thing is for real. Otherwise
8:22
Apple wouldn't have done what they're doing. If they weren't interested or concerned about that
8:26
market at all, they wouldn't take them up on this offer to bring a portion of the manufacturing there
8:31
They care. They're tweaking their strategy. I think they'll tweak it more in the near future
8:38
And eventually, they're going to get to that $500 iPhone. That's what's going to have to happen
8:43
This episode is sponsored by LastPass. LastPass relieves the trouble associated with remembering passwords
8:49
You have so many passwords for all those different websites and services, and so you get LastPass
8:53
It's like autopilot for your passwords, and it removes the obstacles by having a master password
8:58
that unlocks all the others and then a particular password is far more secure than the ones that
9:03
you're likely to set up for those various services. You'll never have to write down or remember a wide
9:08
variety of passwords because they're all locked inside of your LastPass account. If you're using
9:12
the mobile app, there's three new features, unlimited password storage, free cross device sync
9:18
and password breach alert. It also has a built-in password generator that can create long
9:23
randomized secure passwords like alphanumeric passwords that are hard to guess. Thanks again
9:28
for them for sponsoring this episode. Click the link in the description. There's a free trial
9:33
Check it
#Computers & Electronics