Apple, the Californian giant is all set to expand its operations and strengthen its hold in the Indian Market. The manufacturer will be opening its first online store in India next month so that consumers can directly purchase the device through their website. The online store will be ready and functional around the Diwali season.
The iPhone maker had decided to start these online sales last year within months after the government relaxed the rule of sourcing 30 percent of the components locally. This relaxation was a move that was aimed at attracting the big players in the sector. But was also subject to a condition that a foreign entity would have to bring foreign direct investment (FDI) in excess of USD 200 million within the first 2-3 years.
Apple planned to start these sales last year but their plan got disrupted by the pandemic and eventually got delayed. India plays a major role in Apple’s sales figures because of its large population standing at 1.3 Billion. Apple had just made history when it surpassed the market value of $2 trillion. Another reason for Apple’s shifting focus to India is the rising tensions between the US and China, as Shenzen is still the assembling hub for Apple’s products. Because of which Apple is looking to reduce its dependence on China by increasing investments in India.
It is expected that Apple will open a brick-and-mortar store in Bangalore followed by a retail outlet in Mumbai which will be Apple’s first physical retail store in India. Sources say that Apple has already searched for nearly half a million square feet of space near Minsk Square, Bangalore.
By expanding its operations in India and opening a new online store, Apple will also be competing with the other big players in India like OnePlus and Samsung who are also selling phones through their own websites. Whereas Apple is currently selling its devices in India only through stores owned by franchise partners and other online retail services which are Flipkart and Amazon.
Apple has also been assembling its new devices, the iPhone SE and iPhone 11 in India with the help of its manufacturing partner, Foxconn.
The main question which arises now is whether people will still prefer to purchase the devices through its other franchise partners in search of discounts and offers, or will they directly purchase the products through their own online website.