Reference no: EM131638043

Apple sells older versions of the iPhone at a discounted rate in India. However, these smartphones still represent a price premium over local competition. To assist Indian buyers, the company is offering no-interest loans to lure lower-income consumers. Apple is also offering all versions in its iPhone line-up and is narrowing the gap between product introductions in the U.S. and India. In the Indian market, Apple uses licensed franchisees to run its stores. An important driver of the decision is increased mobile phone usage in India. Adding Apple Store franchises is not simply about tapping into growing demand for smartphones; there is also significant growth in the tablet market. One difficulty facing the company as it franchises in India is government regulations, one of which mandates that 30 percent of goods must be sourced locally—a condition that has so far limited the growth of Apple's physical presence in India. Chief Executive Tim Cook recently told analysts, "The multilayer distribution there really adds to the cost of getting products to market." To take advantage of local perspective, Apple, through its partners, has a broad advertising and marketing campaign in India. Apple tightly controls everything about advertising, the amount of inventory entering the country and which cities are targeted and when. The challenge for Apple is making the right decisions to take full advantage of the dynamics of the growing Indian market.

1-When customers continually demand to spend less money, Apple should:

Ignore the customer demands

Discount more expensive products

Offer less expensive products

2-In developing markets like India, retail infrastructure is generally:

underdeveloped

overdeveloped

same as everywhere else

3-Generally speaking, research shows that consumers prefer:

less choice

more choice

restrained choice