MUMBAI : India encourages Chinese smartphone maker Oppo to open its own single-brand retail stores, boding well for rivals like Apple Inc which are seeking similar approvals.
Oppo has become the first pure play smartphone brand to win such a clearance in the world’s No. 3 smartphone market, where Apple has been vying for a bigger market share.
Although India allows foreign firms to sell directly to consumers through a ‘single-brand retail’ route, companies must source 30 percent of the products locally.
The country moved to partially relax those conditions in 2016, exempting foreign retailers from the sourcing rule for three years in a bid to attract more investment.
The Oppo decision is positive for companies like Xiaomi and Vivo, which have been trying to get similar approvals, Tarun Pathak, an analyst at Counterpoint Research, said.
And it might mean approval in the near future for Apple, whose sales in India are mainly driven by its older generation iPhones, Pathak said.
“Opening a retail store will boost Apple’s newer generation sales…it’s also the experience that having a store allows you to offer to consumers,” Pathak said.
Their greatest competitor Samsung also stands to benefit from iPhone X’s popularity particularly the OLED display as the South Korean giant is the exclusive supplier of the display along with the phone’s memory chips.
Apple’s latest iPhone launch certainly matched expectations as the tech giant finally launched a device that was different from its predecessors. The launch of the iPhone X gave Apple a much-needed boost but they aren’t the sole beneficiary of the new device.
According to a report, Samsung is estimated to earn about $110 on every iPhone X sold. The analysis carried out by Counterpoint technology Market research for the Wall Street Journal shockingly revealed that Samsung will earn about $4 billion more in revenue making parts for the iPhone X than it will by making components for its own Galaxy S8 device.
The disparity is quite surprising given the neck and neck competition they give to each other.
Samsung makes about $202 per Galaxy S8 sold from components alone, according to Counterpoint. The business analysis firm projects sales of about 50 million units over the next 20 months, which adds up to about $10.1 billion in revenue. Meanwhile, the iPhone X could make Samsung $14.3 billion during the same period.