Apple Applied To Government For Setting Up First Brand Store In India

Apple has filed an application to establish its first brand store in India.

Apple is interested in opening its brand stores in India. The American consumer electronics manufacturer is boosting its operations in the country by filing an application for official permission from the government to set up its first flagship brand retail store in the state, the company confirmed.

The most valued business in terms of market capitalization has boosted its Indian operations at a steady pace over time, but the long awaited decision to set up a retail store is probably viewed as a clarified statement that company intends to grow more aggressively in the rapidly growing Asian market.

Apple has confirmed the application filed to the department of Industrial Policy and Promotion of India, which in case of acceptance, permits it  to set up its first solo brand retail store. Until recently, the comparatively expensive iPhones have not been able to compete easily in the Indian cost-conscious market for electronics – although won an image as a valued status symbol amongst consumers but at prices unaffordable for ordinary customers.

In future, the company has viewed India as one that could probably be the replacement for the sales in China that have helped it to grow. Analysts said sales of smartphones in the second largest economy are inclining, as one could find in the industrial economies.

Apple has taken the measure just two months after the Indian government made local purchasing requirements easy for foreign retail outlets, which would give them a longer window for establishing an Indian supply chain.

Previously, India used to require foreign shops in its territory to purchase 30% of their warehouses locally within three years of the investments they have done initially. The effort is underlining an extensive search by Apple to find new markets for growth at a time when some of the Wall Street analysts have predicted that sales of iPhones could fall in 2016.

In contrast, smartphone sector of India grew during the past year, turning into the fastest growing market for the products. Industry estimates revealed that approximately 250 million Indians are owners of smartphones – a level that would probably double by 2018.

The company reacted by shaking up its sales network and bolstering its promotional efforts in 2015. It also ran a major campaign to advertise its iPhone 6S in October last year, which it delivered mostly through neighborhood phone stores and online retailers.

Although Apple has viewed the market of India as too complicated and small to support its advance stores, it has done experimenting with some stores in collaboration with Indian retailers.