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Apple Inc. opened its first flagship store in India in a much-anticipated launch Tuesday that highlights the company’s growing aspirations to expand in the country it also hopes to turn into a potential manufacturing hub.

The company’s CEO Tim Cook posed for photos with a few of the 100 or so Apple fans who had lined up outside the sprawling 20,000-square-foot store in India’s financial capital, Mumbai, its design inspired by the iconic black-and-yellow cabs unique to the city. A second store will open Thursday in the national capital, New Delhi.

“India has such a beautiful culture and an incredible energy, and we’re excited to build on our long-standing history,” Cook said in a statement earlier.

The tech giant has been operating in India for more than 25 years, selling its products through authorized retailers and the website it launched a few years ago. But regulatory hurdles and the pandemic delayed its plans to open a flagship store.

The new stores are a clear signal of the company’s commitment to invest in India, the second-largest smartphone market in the world where iPhone sales have been ticking up steadily, said Jayanth Kolla, analyst at Convergence Catalyst, a tech consultancy. The stores show “how much India matters to the present and the future of the company,” he added.

For the Cupertino, California-based company, India’s sheer size makes the market especially encouraging.

About 600 million of India’s 1.4 billion people have smartphones, “which means the market is still under-penetrated and the growth prospect is huge,” said Neil Shah, vice president of research at technology market research firm Counterpoint Research.

Between 2020 and 2022, the Silicon Valley company has gained some ground in the smartphone market in the country, going from just about 2% to capturing 6%, according to Counterpoint data.

Still, the iPhone’s hefty price tag puts it out of reach for the majority of Indians.

Instead, iPhone sales in the country have thrived among the sliver of upper-middle-class and rich Indians with disposable incomes, a segment of buyers that Shah says is rising. According to Counterpoint data, Apple has captured 65% of the “premium” smartphone market, where prices range up from 30,000 rupees ($360).

In September, Apple announced it would start making its iPhone 14 in India. The news was hailed as a win for Prime Minister Narendra Modi’s government, which has pushed for ramping up local manufacturing ever since he came to power in 2014.

Apple first began manufacturing from India in 2017 with its iPhone SE and has since continued to assemble a number of iPhone models from the country.

Most of Apple’s smartphones and tablets are assembled by contractors with factories in China, but the company started looking at potentially moving some production to Southeast Asia or other places after repeated shutdowns to fight COVID-19 disrupted its global flow of products.

“Big companies got a jolt, they realized they needed a backup strategy outside of China — they couldn’t risk another lockdown or any geopolitical rift affecting their business,” said Kolla.

Currently, India makes close to 13 million iPhones every year, up from less than 5 million three years ago, according to Counterpoint Research. This is about 6% of iPhones made globally — and only a small slice in comparison to China, which still produces around 90% of them.

Last week, India’s Commerce Minister Piyush Goyal said the government was in regular touch with Apple to support their business here and that the company had plans to have 25% of their global production come out of India in the next five years.

The challenge for Apple, according to Shah of Counterpoint, is that the raw materials are still coming from outside India so the tech company will need to either find a local supplier or bring their suppliers, based in countries like China, Japan and Taiwan, closer to drive up production.

Still, he’s optimistic this target could be met, especially with labor costs being lower in India and the government wooing companies with attractive subsidies to boost local manufacturing.

“For Apple, everything is about timing. They don’t enter a market with full flow until they feel confident about their prospects. They can see the opportunity here today — it’s a win-win situation,” Shah said.
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A growing number of startups are using artificial intelligence to replicate human voices. A company is creating synthetic voices for organizations to use for advertising, marketing and training. Phil Dierking reports.
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Elon Musk’s SpaceX on Monday called off a highly anticipated launch of its powerful new Starship rocket, delaying the first uncrewed test flight of the vehicle into space.

The two-stage rocketship, standing taller than the Statue of Liberty at 394 feet (120 m) high, originally was scheduled for blast-off from the SpaceX facility at Boca Chica, Texas, during a two-hour launch window that began at 8 a.m. EDT (1200 GMT).

But the California-based space company announced in a live webcast during the final minutes of the countdown that it was scrubbing the flight attempt for at least 48 hours, citing a pressurization issue in the lower-stage rocket booster.

Musk, the company’s billionaire founder and chief executive, told a private Twitter audience on Sunday night that the mission stood a better chance of being scrubbed than proceeding to launch on Monday.

Getting the vehicle to space for the first time would represent a key milestone in SpaceX’s ambition of sending humans back to the moon and ultimately to Mars – at least initially as part of NASA’s newly inaugurated human spaceflight program, Artemis.

A successful debut flight would also instantly rank the Starship system as the most powerful launch vehicle on Earth.

Both the lower-stage Super Heavy booster rocket and the upper-stage Starship cruise vessel it will carry to space are designed as reusable components, capable of flying back to Earth for soft landings – a maneuver that has become routine for SpaceX’s smaller Falcon 9 rocket.

But neither stage would be recovered for the expendable first test flight to space, expected to last no more than 90 minutes.

Prototypes of the Starship cruise vessel have made five sub-space flights up to 6 miles (10 km) above Earth in recent years, but the Super Heavy booster has never left the ground.

In February, SpaceX did a test-firing of the booster, igniting 31 of its 33 Raptor engines for roughly 10 seconds with the rocket bolted in place vertically atop a platform.

The Federal Aviation Administration just last Friday granted a license for what would be the first test flight of the fully stacked rocket system, clearing a final regulatory hurdle for the long-awaited launch.

If all goes as planned for the next launch bid, all 33 Raptor engines will ignite simultaneously to loft the Starship on a flight that nearly completes a full orbit of the Earth before it re-enters the atmosphere and free-falls into the Pacific at supersonic speed about 60 miles (97 km) off the coast of the northern Hawaiian islands.

After separating from the Starship, the Super Heavy booster is expected to execute the beginnings of a controlled return flight before plunging into the Gulf of Mexico.

As designed, the Starship rocket is nearly two times more powerful than NASA’s own Space Launch System (SLS), which made its debut uncrewed flight to orbit in November, sending a NASA cruise vessel called Orion on a 10-day voyage around the moon and back.
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Japanese video games group Sega has offered to buy Angry Birds maker Rovio, valuing the Finnish company at over $770 million, the companies said Monday.   

“Combining the strengths of Rovio and Sega presents an incredibly exciting future,” Alexandre Pelletier-Normand, CEO of Rovio, said in a statement, which added that Rovio was recommending shareholders to accept the offer.   

The offer, which represents a 19% premium over Rovio’s closing share price on Friday, is part of the Sonic the Hedgehog maker’s “long-term goal” of expanding into the mobile gaming market, Sega CEO Haruki Satomi said.   

“Among the rapidly growing global gaming market, the mobile gaming market has especially high potential,” he added.   

In 2022, Rovio, which employs over 500 people, saw a revenue of $350 million, and an adjusted net profit of $34.5 million.   

Rovio launched the bird slingshot game in 2009 and it soared rapidly to become one of the most popular games on Apple’s App Store.   

In 2016, the “Angry Birds” movie, produced by Sony Entertainment, was a huge success and grossed $350 million worldwide.   

Rovio also manages Angry Birds theme parks in several countries and oversees the publication of children’s books about the famous birds in a dozen languages.   

Following the global success of Angry Birds, Rovio has remained heavily reliant on its flagship game, struggling to develop another similar hit.   

After years of success tied to its Angry Birds mobile games, Rovio hit a rough patch in 2015 and laid off a third of its staff.   

Sega is aiming to open the offer period in early May, hoping to complete the deal in the third quarter, the company said. 
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