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 11 : India is now the focus of Apple operations because

1. it offers the benefit of a manufacturing base in addition to a market.
2. it has the world’s second largest population.
3. American technology companies want to reduce their reliance on China.
4. no other country has the same ease of doing business.

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Video Explanation

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Explanatory Answer

Option 1: This option is correct. The passage highlights that Apple sees India as both a growing consumer market and a manufacturing hub. It mentions that Apple has been increasing its iPhone production in India, and analysts predict that by 2025, India could produce up to 25% of all iPhones. This indicates that Apple is not just expanding its sales in India but also shifting part of its manufacturing operations there.
Option 2: This option is incorrect. While India’s large population contributes to its importance as a market, the passage emphasizes both market potential and manufacturing benefits, not just population size.
Option 3: This option is incorrect. While Apple is diversifying production away from China, the passage focuses on India’s growing importance rather than Apple's concerns about China.
Option 4: This option is incorrect. The passage does not claim that India is the easiest country to do business in, only that it is strategically important for Apple.

Hence, the answer is 'it offers the benefit of a manufacturing base in addition to a market.'

Choice A is the correct answer.

 

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