India’s post-customs duty hike will be impacting a lot of lives and companies. The custom duty has been moved higher from 10 per cent to 15 per cent and Apple has been at the frontline in reacting to the latest news. Apple made the move on Monday in a bid to ensure that it struck a perfect balance in its business operations.
There was a moment in the history of Apple that the company remained quite stagnant. It resorted to a number of strategies to move forward and since then it has been able to uphold its vibrancy in the market. Among its tactics has been the strategy of creating artificial shortages of its products. It is a move that has been criticized by analysts from time to time. However, it has been working for it.
The move to hike the prices of Apple’s iPhone is expected to spark mixed feelings among most of the users. The Associate Director of Mobile Devices and Ecosystems, Tarun Pathak in a recent interview outlined that the feeling amongst the Indian Apple community was something that could be depicted. According to him, most of them might not have taken the matter of having to pay extra in a light way.
However, he went further to outline that each and every person or company around the globe needed to appreciate the ever changing market dynamic since it was something that couldn’t simply be wished away. Apple was doing what it had to do and no one needed to place blame on the company.
Reality is suddenly dawning on Apple regarding the fact that it needs to start looking at investments in India more seriously. Apple is placing several demands of the government of India. The first demand that it is placing on the table is for the government to give it incentives as a way to encourage its manufacturing activities in the country. It is also pushing for tax reliefs in line with its business operations.