IPMAT Question Paper 2023 | IPM Indore Verbal

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Two Apple stores in Delhi and in Mumbai - opened in April 2023. Until now, Indians could buy Apple products in the country either online or through a vast network of what the company calls ‘premium resellers’. Will the new-found ability to sell products directly to customers in India - the world's second largest smartphone market - impact its fortunes here? Apple has long tried to open physical retail stores in India. In 2019, the Indian government relaxed some investment rules, exempting companies selling ‘cutting-edge’ items, such as Apple's iPhones and iPads, from restrictions.
Apple first launched an online store in India through a website which allows users to request for customised products. Apple’s decision to open physical stores in India could be the next step in its branding strategy. It is not as if this will change Apple’s sales in any dramatic way, but it is still a key milestone, one that will allow Apple to deliver to Indian customers the full Apple experience. The iPhone is still an aspirational product in the price- sensitive Indian market. When you launch an Apple store, you are basically giving a premium experience to your premium consumers. It might not pull up sales, but it pulls more people into the Apple ecosystem.
Setting up an Apple store in India is also a statement that the country is now big enough for Apple to be actually interested in expanding operations here, and comes at a time when India is rising fast as a manufacturing base for the iPhone. Apple first began making a lower-end model of the iPhone in India in 2017. Last year, it began producing its latest model of iPhone 14 in the country, which now accounts for 5 percent of total iPhone production.
For years, Apple had relied on China's sophisticated manufacturing network to produce the bulk of its products. But analysts predict that by 2025, a quarter of all iPhones the company makes could be produced in India. Apple was already making between 5-7 percent of its products in India, and they are targeting to go up to 25 percent of their manufacturing capacity.
In 2022, Apple had a 60 percent market share in the Indian ‘premium smartphone’ market - which refers to mobiles that cost INR 40,000 or more, ahead of Samsung's 21 percent share. Apple is doing well across categories. The real issue will be to pull consumers to these flagship centres without alienating the partner sellers.
Apple has finally understood that India’s premium market is growing, so why not be serious about it

Question 10 : The main point the passage makes is that Apple

  1. has realised the strategic importance of the Indian market.
  2. needs physical stores to expand sales to more buyers of premium products.
  3. iPhone was already popular in India.
  4. needs new branding and marketing strategies to compete with Samsung

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Explanatory Answer

Option 1: This option is correct. The passage highlights how Apple recognizes India as an important market and is expanding its presence by opening retail stores and increasing manufacturing operations. It states that Apple has long wanted to open physical stores in India, and the recent developments signal that India is now a significant market for Apple’s growth and branding strategy.
Option 2: This option is incorrect. The passage mentions that Apple stores are more about enhancing the brand experience rather than dramatically increasing sales.
Option 3: This option is incorrect. While Apple has a strong share in the premium market, the focus of the passage is on Apple's expansion and strategic moves, not just the iPhone’s popularity.
Option 4: This option is incorrect. The passage states that Apple is leading the premium smartphone market in India, so competing with Samsung is not the primary focus. The expansion is more about strengthening Apple’s ecosystem in India.

Hence, the answer is 'has realised the strategic importance of the Indian market.'

Choice A is the correct answer.

 

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