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With slowing iPhone sales in China nike air vapormax
flyknit uk , Apple Inc is having to take India more seriously, but
investors hoping for a stock price fillip from CEO Tim Cook's week-long Asia
trip instead were given a taste of the daunting challenges that lie ahead.

The second leg of Cook's trip, to India, the world's third-largest smartphone
market, comes at a crucial time as Apple battles slowing growth in China, its
second-biggest market. But the challenges suggest it will be years before India
is anything close to a major earnings pillar for the U.S. tech giant.

Tim Cook in China

"With China saturating nike vapormax
uk , everybody has no choice but to look at India, and Apple's
rivals have been strengthening there in the last two years. Apple is playing
catch-up," said Ville-Petteri Ukonaho, a senior analyst at Strategy Analytics.

While the numbers in India suggest huge potential - fewer than two in every
10 of the country's 1.3 billion people have a smartphone - the world's fastest
growing major market operates differently to other markets where Apple has
enjoyed stellar growth and high margins.

Apple's traditional model is to sell its phones at full price to local
telecoms carriers, which then discount them to users in exchange for charging
them for data as part of a multi-month contract. Not so in India.

"In India, carriers in general sell virtually no phones and it is out in
retail - and retail is many nike air max 2018
uk , many different small shops," Cook told analysts recently.
"Because smartphones there are low-end, primarily because of the network and the
economics, the market potential has not been as great," added Cook, likening
India to the Chinese market 7-10 years ago.

In meetings with India's two largest carriers adidas ultra boost
uncaged uk , Bharti Airtel (BRTI.NS) and Vodafone (VODA.NS), Cook
discussed ways to work more closely to sell iPhones, including whether a
contract pricing model could work in India. He said Apple sees opportunities to
expand in the market as operators roll out 4G services.

"The trip was more about understanding the Indian market, but was also about
signaling to the world that Apple has arrived in India," said Vishal Tripathi,
research director at Gartner.

PRICE SENSITIVE

Another challenge for Apple is how to be a premium-end player in a low-income
market.

"In India adidas
nmd cs2 primeknit black , incomes are so low that not many
customers appreciate the full value of the Apple ecosystem, and it will take a
lot more effort for Apple to sell the Macs and iPads in Indian stores compared
to China," said Strategy Analytics' Ukonaho.

India is a more price sensitive market than China, and Apple's relatively
expensive iPhones are out of reach to most Indians, who on average live on less
than $3.10 a day according to World Bank data.

With per capita income of $1,570 as of 2014 and the average smartphone
selling for less than $90 adidas
nmd r2 uk , a third of the global average, India's market growth is
predominantly led by cheaper phones. High-end smartphones - costing from $300 -
make up only 6 percent of the market, or just 6 million units, according to
Morgan Stanley.

Rebuffed by India's government in its plan to import and sell used,
refurbished iPhones, Apple has seen only slow growth in a market dominated by
Samsung Electronics (005930.KS) and Chinese brands.

That issue was not resolved in talks with Indian Prime Minister Narendra Modi
- which a Modi aide called "extremely successful" - and government officials
have pressed Apple to set up manufacturing facilities in India adidas
nmd city sock uk , said officials involved in discussions, a move
that would create jobs and boost Modi's "Make in India" initiative.

"Now it's for Apple to talk about their plans," the Modi aide said.

Apple declined to comment on what Cook achieved on his Asia trip.

MORE MARKETING

Apple's brand awareness ranks 10th in India, trailing Samsung, Sony (6758.T),
Blackberry (BB.TO) and some local rivals. Almost half of respondents in a Morgan
Stanley survey said they do not know Apple.

While Apple is likely to double its share in the $400-plus segment to 40
percent adidas
nmd r1 uk , it "has to significantly increase its store presence,
ramp up marketing, and add local content," the brokerage said in a recent note.

A first Apple retail store in India is unlikely to open its doors until next
year at the earliest.

In internal meetings, Cook stressed how Apple wants to increase its retail
operations in India and work with re-sellers to make its products available more
widely. "We've been hiring for India retail and distribution for the last few
months, and Tim's message was that we need to double down on that yeezy boost 650
price ," said an Apple official in India.

In China, where iPhone sales slumped in January-March and some online
entertainment services were suspended, Cook also had little to cheer investors.

At meetings with Chinese officials, Cook emphasized Apple's contributions to
China's economy - creating jobs, generating revenue and paying taxes - said
people familiar with the matter. His visit came just days after Apple announced
a $1 billion investment in a local ride-hailing app firm, a move Cook says will
help Apple better understand China.

But when he asked about the shutdown of online services and emphasized that
Apple had followed procedures in establishing those services yeezy 550 boost
black , he was told only that China would look into it, the people
said.

MOGADISHU, June 22 (Xinhua) -- At least three people were killed and several
others injured in a suicide car bomb attack at a police station in Mogadishu on
Thursday, the police confirmed.

A police officer at the scene said a suicide bomber rammed a vehicle loaded
with explosives inside the police station in Waberi district.

"I saw three dead bodies at the police station. The incident took place when
the police officers were holding a meeting at the station," said the officer who
declined to be named.

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