Apple expands presence in India with opening of first physical retail store

Apple has opened its first retail store in India, a significant step forward in the company’s efforts to expand in the country. The store is located in a prestigious shopping mall in Mumbai, the country’s financial capital and it drew hundreds of admirers who queued outside before its official opening. Apple is set to open a second store in the capital, Delhi, later this week. India, with a population of 1.4 billion people, has the world’s second-highest number of smartphone users after China, making it a potentially lucrative market for Apple.

The tech giant has already opened an online store in India in 2020, but the opening of this physical store marks a significant expansion of its presence in the country. Apple is also expanding its manufacturing footprint in India, with the goal of diversifying its supply chain away from China, where it is heavily reliant on raw materials.

India is an important sales market for Apple as well as an alternative manufacturing hub. In a statement, Apple CEO Tim Cook said, “The company is putting a significant amount of energy into the Indian market and sees more opportunity.” He went on to say that he is “very bullish” on the country and that India is a key focus for Apple. With over 600 million smartphone users, India is a massive market, but Chinese brands such as Xiaomi, Vivo, OPPO, and Realme have dominated the premium smartphone segment, with a combined market share of 66% in 2022. In comparison, Apple’s iPhones compete in the premium segment of the market, where they held only a 4% share last year.

However, analyst believes that Apple could benefit from the premiumization of India’s smartphone market as well as financing schemes for both retailers and consumers. “Apple is focusing more on the Indian market because there is more opportunity there,” he explained. Apple hopes to increase its market share and appeal to more premium consumers in India by opening a physical retail store there.

The opening of the retail store in India comes as Apple seeks to shift its device and component production away from China, owing to diplomatic tensions between the United States and China, as well as supply chain disruptions caused by strict COVID policies. Apple currently manufactures only 1% of its iPhones in India, but the company is reportedly increasing production through its Taiwanese suppliers, Foxconn, Wistron, and Pegatron. In 2020, India offered $6.6 billion in incentives to encourage companies to manufacture smartphones in India, and Apple took advantage of this initiative.

One of the primary benefits of manufacturing in India is that it may lower the cost of iPhones for Indian consumers. Because of the sentimental value attached to locally made products, local manufacturing may increase the likelihood of Indians purchasing iPhones made in India. “I believe that with Apple manufacturing in India, prices will come down because it’s local manufacturing, which makes iPhones more affordable,” said stationery dealer Madhav Mimani, who travelled about 900 kilometres from Rajasthan to attend the store’s opening.

Finally, Apple’s opening of its first retail store in India represents a significant expansion of the company’s presence in the country. By focusing on the Indian market, Apple hopes to increase its market share in the premium smartphone segment and diversify its supply chain away from China. The physical store’s opening in Mumbai is a significant milestone for the company, which sees more opportunity in India and is “very bullish” on the country’s potential.

Main Image: Telegraph India