Apple Inc. has been operating in India for the greater part of the last decade through third-party resellers. The scenario is set to change very soon with CEO Tim Cook announcing that the company plans to establish its first retail outlet in the country by 2021. Cook went a step ahead answering questions about Apple’s India strategy, which also includes online reselling starting later this year.
Tim addressed the shareholders at the Apple annual conference on Wednesday, confirming plans of setting up an online store by Q3 2020, and a brick-and-mortar store by the next year. Speaking on the topic, Cook said, “I am a firm believer in the opportunities in India. The vibrancy here and the demographics are simply unparalleled”.
According to Cook’s official statement, Apple’s decision to operate in India is largely due to the fact that the company did not want third-parties to run the brand. Apple has been running its Indian franchises through third-party resellers due to the government’s restrictions on stores owned by non-India firms. Forcing them to depend on local resellers for sales and after-sales services.
Cook further stated, “We are not the best firm for partnership. We like to do things our way”. The Indian government has recently loosened the rope around foreign companies operating independent stores in the country. This coupled with the fact Apple recently set up an assembly point in the country, opening up avenues for export, adding to its 30% local resource collection, which has worked in its favor.
Rumors around Apple purchasing a 25,000 sq ft property in Mumbai’s Maker Maxity mall surfaced late last year. While one floor is expected to be Apple’s experience center, another would be dedicated to sales, and a third for after-sale service.
This is a strategic decision by Apple as they have been looking for ways to indulge the growing audience with its array of products for a long while. The road was challenging due to the high prices associated with Apple products. According to a Counterpoint Research, the average price of smartphones sold in India is around $150. While Apple has continuously been requesting the government to offer tax respite for quite some time, nothing materialized until its two major suppliers, Foxconn and Wistron, started assembling products in India.
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