American technology company Apple is looking to strengthen its presence in the Indian market not only through the manufacturing of its products, but more recently in the streaming services space as well. By partnering with India's second largest telecom operator, Bharti Airtel, Apple will gain access to a huge user base and the ability to offer its streaming services like Apple Music and Apple TV+ to millions of new users.

A new chapter for Apple in India

Apple $AAPL+3.7% has long been investing in expanding its manufacturing in India to reduce its dependence on China. This strategy has proven successful, with iPhones' share of the Indian market growing from 2% in 2019 to 6% in 2023. However, in digital services such as streaming music and video, Apple has so far lagged behind competitors in India.

Thanks to a new deal with Bharti Airtel, Apple will be able to offer its services for free to many of the operator's 281 million customers. With this move, Apple is looking to tap into the growing streaming services market in India, currently dominated by Disney+ Hotstar and Netflix.

Apple Music as the new favourite

Apple

AAPL

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One of the main aspects of the new deal is that Apple Music will be newly available to premium users of Bharti Airtel's Wynk app, which will be phased out. The move could mean significant growth for Apple Music's user base in India, which currently stands at just 200,000 paying customers. In comparison, Spotify has roughly 3 million paying users in India.

Apple Music, which is adapting more to the Indian market with its regional song offerings, could reach a wider audience, especially if it can address the issue of its limited library compared to its competitors.

Challenges for Apple TV+ in India

When it comes to video streaming, Apple TV+ has had only a marginal impact in India so far. Unlike competitors like Netflix and Disney+ Hotstar, Apple TV+ mainly offers content in English and does not offer as much content in Hindi or regional languages. This may be one of the reasons why it has less than a million users in the country.

Airtel plans to include Apple TV+ in its packages with a few months of free access, which could help grow the user base. However, as experts point out, success will depend on how Apple is able to adapt to the local market and whether it will be able to compete with strong players that offer more localised content, including popular cricket matches.

Conclusion

Apple's partnership with Bharti Airtel is a strategic move that can significantly strengthen the company's position in the Indian digital services market. Still, Apple will face a number of challenges, including the need to better tailor its offering to local conditions and compete with established players. However, success in India could be key to Apple's continued growth not only in that country but also in other emerging markets.

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