Question

India has become one of the favourite markets for all multinational company explain this statement logically​

Answer 1

Asked late last year about the market for Apple Inc. products in India, chief executive officer Tim Cook more or less wrote off the huge country.

He blamed a multilayer distribution structure for making it too hard to reach consumers beyond elites in cities such as Mumbai and Bangalore. Apple would look elsewhere for growth: In the intermediate term there will be larger opportunities outside there, Cook said. Today, India—with a middle class the size of the US population—accounts for less than 1% of Apple’s global sales.

By contrast, Samsung Electronics Co. Ltd saw plenty of opportunity in the subcontinent. The Korean company invested massively in its brand and distribution in India. Rather than waiting for the country to become rich enough to buy top-end smartphones such as the Galaxy S4, Samsung developed and sold a range of devices at different price points. The company now dominates one of the fastest-growing smartphone markets in the world, outpacing not just Apple but Nokia Oyj, BlackBerry and others. Apple’s stock, meanwhile, has swooned.