Wednesday, October 26, 2011

Steve Jobs, Apple and India

The much awaited Biography of Steve Jobs was finally released almost two and a half weeks after he passed. Written by Walter Isaacson, the biography goes into Steve Job's life and times. The book gives us great insight into the life of one of the best inventors, who was otherwise a very secretive and private person. One of the major influences in Steve Job's life has been India, religion and mysticism.

Steve Jobs came to India in 1974 and stayed here for 7 months in search of enlightenment. He landed in Delhi, and was put up in a hotel where his taxi driver got a commission for taking guests there. He was also welcomed with dysentry, thanks to the rather clean water that the hotel gave him. It took him a long time to recover and he went to Haridwar for the Kumbh. He participated in the Kumbh and went to Nainital to meet Neem Karoli Baba (Maharaj Ji). By the time Steve had reached Nainital, Maharaji ji has passed, or rather reincarnated. A local family hosted Steve and helped him recuperate. During  his stay, he repeatedly read the 'Autobiography of a Yogi' by Paramhansa Yogananda (It is believed that this is the only book he has downloaded on his iPad 2) and visited many villages. He also went to meet a Guru who shaved his head to save his health.

It is not known whether Steve returned enlightened or disillusioned. Isaacson's book says he returned more clear and learnt that not only are Indians rational but also intuitive. It was this trait - intuitiveness - that Steve tried to incorporate in all his products, making them the best in the world. Another view is that he went back to the States and said there was no enlightenment when more than half the country was so poor and miserable.

Either ways, the perception he had is not uncommon. Most of the West thinks of India as a country full of mysticism and spiritual gurus who can make all problems vanish. They think people in India still travel on Elephants and snakes happily roam the streets. They think all the people are poor and can hardly afford clothes hence they dress up like Gandhi (thats what someone in UK told me, and I was surprised at his ignorance and arrogance)  Many are shocked to see the level of English that we speak, perhaps even better than their's. Those who know of India only know the Taj Mahal or Goa. While this perception is changing rapidly, it is still the majority view in the West.

Steve went back and opened what would be one of the most valuable companies in the world. He launched game changing products, that changed the world each time around. He never returned to India, and perhaps never thought too highly of India as a market. It seems like the image of poverty still lingered and he thought Indians could not afford to buy an Apple product.

Apple has never treated India as an upcoming market. It launched the iPad and iPhone 4 a year after it released. It has often treated India as a dumping ground for older products when they were launching upgraded versions of the same. To add to that, Apple has officially sold roughly 21,000 iPads and iPhone 4 s respectively. This is hardly anything compared to the sales they make the world over. This is perhaps why Apple doesn't treat India as an upcoming market. There is no Apple Store in India, only resellers. But here's the flip side - the number of these devices being used is almost 5 times the number Apple has officially sold, thanks to the Grey Market. These products are available in India so late that those who want them buy them from elsewhere, and pay prices that are unimaginable. I know someone who paid 82,000 for a 64GB iPhone 4S.

There's no doubt that Indians can afford Apple Products. There are 33 million people in India who can afford to buy an Apple iPhone, iPad or MacBook. However the number of Apple Products in the market is very insignificant. The reason is that the choice is a lot and competitors like Samsung and Nokia and more visible and do more promotional efforts. Apple Products are more aspirational in nature, which everyone wants to own (and they may own one, one day). There are more than 800 million mobile subscribers in India. We're growing at a rate that will surpass China. We are as much a market as China is. More and more people are switching to smart phones. Apple can capture the market and gain significant market share. A good market share in India will only add to the iOS and Mac OS X ecosystem the world over, making it more prominent and dominant.

If Steve Jobs had to come to India today, he would be amazed to see the blend of spirituality, economy and technological development that makes this nation magical (and I mean it when I say magical - somehow things just happen like magic). We're an upcoming economy and our negatives now will turn out to be our positives in a decade or two (population). We are Apple's market, we are a defining part of Apple's future. We are an upcoming superpower, and a super company should take an upcoming superpower seriously.


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