After an expansion into China that is nothing short of spectacular, Apple next has its sights set on India, with its vast population of 1.2 billion citizens and rapidly-growing smartphone market.
With that in mind, the company is reportedly finalizing plans to open 500 “iOS stores” in the country, ranging from smaller 300-600 square foot retail outlets, to ones over 2,000 square foot in larger locations.
These stores will likely be run as a franchise model, and operated by Redington, one of Apple’s two distributors in India, which supplies Apple devices to regional stores. Remington currently accounts for around 70 percent of Apple sales in India.
Although Apple has a presence in larger cities like Delhi and Mumbai, its products are less available in smaller towns and cities, such as Amritsar, Pathankot, Moga, Coimbatore, Trichy, Nagpur and Nasik.
The popularity of Apple products (particularly the iPhone) is only growing in India, and this is viewed as the perfect time to expand. In the year ending September 2014, it is reported that around 1 million iPhones sold in the country — and this number is expected to triple to 3 million in 2015. Apple will likely increase spending for direct advertising to help drive these increased sales.
While this all good news, however, that isn’t to say Apple doesn’t face challenges in India — as it also has in China. Recently an attempt was made by the Indian company iVoice Enterprises to bar Apple from using the name iPhone, on the grounds that iVon owned the trademark to the phonetically-similar iFon.
Apple has additionally previously struggled with Apple-authorized resellers in the country. This time last year, Indian-based Reliance Retail announced that it was shutting 16 of its 20 Apple premium reseller stores because Apple claimed they did not comply with company guidelines.
Apple dictates that its stores must conform to a standardized design featuring high ceilings, white LED lighting, wooden floors, specific display tables, and numerous other details. Reliance has been focusing on rapid expansion, and had ignored Apple’s design requests.
The company has also struggled in its effort to open official Apple Stores based on its difficulty overcoming demands from the Indian government.
Hopefully the 500 “iOS Stores” fare better.
Source: Economic Times
Via: Patently Apple
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
4 responses to “Apple hopes to meet growing iPhone demand in India with 500 retail stores”
Apple’s biggest hurdle is getting their 6/6+ cheaper so that they are more affordable. I’m sure they might release polycarb (a la 5C) type design for next year, which is possible. The problem with the Indian market is that the majority of people in India can’t afford >$500 phones, they can barely afford a $400 phone. Either Apple has to make their larger screen models more affordable, or the people of India have to start making more money. I hate to say this, but that’s the reality. Apple will get some business, but I don’t know if it’s going to be because of having 500 stores. I’m sure it will definitely help, but the disconnect is people with money and Apple having more affordable products that they want to buy.
People from developing countries splurge on ‘luxury’ items too. Except that while in the US they would buy things like luxury cars or high end swiss watches, in the third world they would buy something like a high end smart phone. Don’t know if 500 stores in India makes sense but I would presume the people making these plans know a little more about their business than I do.
Why don’t a dum dum like you ever think of the business potential. if you have some doubts about Indian market, then ask Tim cook, who recently reported a 400% upwards of sales YoY.
Just like in USA where you have states like CA n NY, there are states in India too. Taking Average of the whole Indian population (1.25 billion) per capita is a looser’s answer.
Forget about “Number of Indian billionaires in top 100”.
Forget about “Indian GDP by PPP”
Forget about “Number of Mobile phones sold/used in India every year”
Finally, just lets assume 20% only can afford it which is 240 million. Will you loose them?
Average Indian as per you who lives on $2/day can get an IMAX Ticket for latest Hollywood film for Rs 120 which is < $2. Can you ever do that dum dum? So stop sympathizing and get your facts correct.
GOSH, Why the West always look at "Uttar Pradesh" and consider it's the same India across. YEAH, I agree with you. This planet is flat straight.
u have no clue of buying power of indians…. 3 rd largest gdp ppp …… set to cross us in next 20 years