Apple To Open Its First Outlet In India

CEO Tim Cook believes that the Indian market has the potential to help increase the sales of his company in the competitive market

Apple is about to get clearance to set up its first outlets in India, a person aware of the matter stated, as CEO Tim cook is seeking opportunities for growth in a country with a population of 1.3 billion people. 

Government of India is planning to push through the application of the American consumer electronics manufacturer to establish retail stores, the person stated, asking to be kept anonymous as the details aren’t public. The enterprise is submitting the request again as it was not in the right format, the person stated, without providing a time-lime for ultimate approval.

The smartphone maker must qualify as a cutting edge technology provider, the person stated. That would get the manufacturer of iPads and iPhones from a regulation compelling foreign enterprises that do retailing of a single brand in the country to purchase 30% of the inputs of a product in the same country. The company manufactures majority of its devices in China.

Mr. Cook is looking for fresh sources to grow followed by the decline in sales growth last month after a decade. India is currently the most rapidly growing major economy. It has around 220 million users of smartphones. The challenge faced by Apple is that Indian customers prefer cheaper products, which has left the company with just 2% of the market. The organization will probably continue its policy to offer major discounts on its older models- like the iPhone 5s for increasing its number of users stated, Counterpoint Technology Market Research’s senior analyst Tarun Pathak.

The volumes of China are 15 times greater than India, which signals a room for growth, he added. Apple employs re-sellers in the country for its devices.

Since the confirmation by Apple that it has filed an application to establish stores in India, the share price of Redington India Limited has been cut down by 5%. Some analysts have estimated that the outlets would generate the highest revenue per square foot in the American conventional retail industry and also do promotion of the company by organizing workshops for consumers.

Apple presently has at least two dozen outlets in China which contribute to its international network of over 460. Tim said earlier in January after the company announced its quarterly earnings that he optimistically believes that business environment of India will enhance and he looks to boost up the investment there.

The Foreign Investment Promotion Board being housed in the Ministry of Finance, processes applications like that of Apple after being guided by the Department of Industrial Policy and Promotion in the Indian commerce ministry.

Ministry of Commerce’s spokesman Rajinder Chaudhry and Ministry of Finance’s spokesman D.S. Malik stated they could not immediately respond as the application filed by the technology giant need to be checked.