Tim Cook’s Indian Curry bowl economics – what Apple hopes to achieve in India

India just ticked off another CEO off its bucket list. This time it’s Apple CEO Tim Cook. Currently touring China, Cook will land in India on Tuesday night.

The Apple CEO’s surprise visit to India comes weeks after he spoke about Apple’s potential in India, and that he views the country as a huge opportunity. He also mentioned challenges in connectivity.

Here is Cook’s expected agenda for the short India trip:

1. Apple’s own Accelerator Program
Uber CEO Travis Kalanick recently said the three biggest R&D Centres across the world are Beijing, Bay Area and Bangalore (Bengaluru).

While Apple’s a bit late catch up with the joneses, Cook has realized its better late than never. India’s one of the world’s biggest breeding ground for startups now, and Google’s already running an Accelerator program here.

In fact, Google has recently announced a second batch of Indian startups that will join its Launchpad Accelerator program at it’s headquarters in California. These startups will get a six-month long mentor-ship program, and $50,000 in equity-free funding.

2. Selling Refurbished Smartphones
India’s the world’s biggest smartphone market, and Apple’s market share here stands at a measly 2%. Cook sure wants to change that.

India recently rejected a plan by Apple Inc to import used iPhones. This has hit the US tech giant hard, especially now that it’s been seeking to revive waning sales.

Apple currently sells its refurbished iPhones at discounted prices in some countries. Given the company’s strong brand equity amongst the Indian elite, Cook hopes refurbished iPhones will give him the edge over Chinese competitors with much cheaper offerings.

3. Startup India and Digital India initiatives
The Apple CEO is scheduled to meet Prime Minister Narendra Modi. The company is expected to roll out a slew of initiatives supporting the PM’s Startup India and Digital India initiatives.

What they are, and what that would mean for the company and the country is yet to be known. We’ll keep you posted.

4. Cook meets Ambani
Tim Cook has said India’s 4G rollout ‘will unleash the power and capability of the iPhone in a way that an older network, a 2.5G or even some 3G networks, would not do’.

The US, Europe, and large parts of Asia already run 4G networks, that deliver high speed data services.

Reliance owns the largest amount of spectrum among any Indian telecom provider can offer, and its upcoming Jio LTE and broadband services will change the Indian telecom industry forever.

Are we seeing a possible partnership between Apple and Jio? Maybe.

5. Apple’s New R&D Centre in Hyderabad
According to an ET report from January, 2016, Apple has been in touch with real estate firm Tishman Speyer for long term lease of around 2.5 lakh square feet of office space on the city outskirts.

The office can accommodate around 2,500 employees, and is worth over Rs. 150 Crores. Looks like Apple’s taking India seriously, and Cook’s here to finalize plans.

6. Set up Apple Stores in India
Apple is looking to set up its own iconic Apple Stores in Delhi, Bangalore and Mumbai within the next 18 months, a recent FactorDaily report said.

Each Apple Store is expected to be spread across 10,000 square feet, and will be located in posh localities (obviously). Each of these stores are expected to cost $3-5 million. The company’s looking for real estate currently.

Image Source