Apple is preparing for business expansion in the retail smartphone market in India with the establishment of four new retail stores in the country. After getting phenomenal success in its first two retail Apple stores in Mumbai and Delhi, this US based technology corporation has decided to mark its footprint in Pune and Bengaluru. Mumbai and Delhi- these two large cities contribute to a considerable proportion of sales of Apple in India.
Therefore, as per the company, these cities each require one more Apple store to fulfil the increasing demands for its products in India. Additionally, in order to tap the other markets of India, the company has chosen Bengaluru and Pune to open one retail apple store in each of the two cities. The business strategy of Apple in India is characterized by expansion, export and local manufacturing.
Market expansion in Apple in India
The journey of Apple in India started in the 1990s when the organisation began to sell its products in the country. Nevertheless, the company has started to put more emphasis on this Indian market after the 2000s. Despite the rising growth and popularity of its smartphones, the company has a limited market share in India as the android devices have the market domination in the current time. As of May 2024, there is around 4.11 per cent market share of iPhone in the smartphone market of India.
However, in recent years, Apple has been moving its attention to this country as India is reported to be the second-largest smartphone market in the world. As an effort, apart from manufacturing and selling iPhones in the country, the company launched its first two retail stores in India in April 2023, which are located at BKC in Mumbai and at Saket in New Delhi.
This initiative has been proven as the most successful for the company as a sales revenue of around 190 to 210 crore has been reported during the first year of the opening of the stores. Since its establishment in April 2023, each store was accountable for generating monthly average sales of Rs. 16 to 17 crore.
This success led to the incorporation of the decision by the company to open four more retail outlets in India, while Pune, Bengaluru, Delhi-NCR and Mumbai have been the choice of the company for retail expansion. According to Deirdre O’Brien, who is the senior vice-president of retail of the company, their stores are designed to offer a better experience of the magic of the company products to the customers, and this will be helpful to strengthen the positive relationship with the customers in India.
He also said that they are excited to develop a new team and community with the opening of additional stores in India while the initiative is driven by the engagement and passion of their customers present in the country. It will provide the opportunity for the customers to avail and shop for the products and services of the company and generate more employment opportunities. However, the date and location of opening the outlets has not been revealed yet.
The tech giant is also focusing on strengthening its workforce in India. Currently, around 3000 employees are associated with Apple in India. It has been reported that there is the potential to offer employment to around 6 lakh workers directly to the company by the end of the financial year 2025.
Stepping into the production of iPhone 16 lineup
The company is also planning to strengthen its manufacturing hub in India. It has been reported that the company is involved in the production of the entire iPhone series, which includes the iPhone 16 Plus and iPhone 16 Pro Max in this county. On September 9, 2024, the company unveiled its latest iPhone 16 lineup in its annual event of 2024. Now, this latest premium series will not only be manufactured in India but also aims to export to other global countries.
This reflects the efficiency of the Make in India initiative of the government of India to make the country a global manufacturing hub while indicating the increasing significance of India in the global supply chain of the company. The company has been involved in the manufacturing of iPhones in India since 2017. However, only the older generation of iPhones were produced in India, while now they have stepped forwards towards the mass manufacturing of the latest and premium series in the country.
As per the report, the company is found to be collaborating with Pegatron, Foxconn, and Tata Electronics for the production of these devices. Foxconn and Tata Electronics are accountable for the production of iPhone 16 and 16 Plus models. On the other side, Pegatron will focus on the manufacturing of iPhone 16 and 16 Pro.
Connection to Make in India initiative
The Indian government has introduced the Make in India Initiative to make India an export-centric country rather than an import-centric country. The purpose of this initiative was to encourage foreign countries to manufacture and invest in this country by enhancing the flexibility of the regulatory landscape and promoting favorable business circumstances for businesses. Grabbing the opportunity of India’s attractive FDI policy, skilled workforce and advanced technology infrastructure, Apple has increased its reliance on India for manufacturing its iPhones.
Currently, 1 in 7 iPhones are found to be manufactured in this country. Apart from manufacturing, the company is also engaged in sourcing the raw materials for the phones locally from the country. Around 14 billion US dollars worth of iPhones has been assembled by the company in India in the financial year 2024.
The company currently manufactures 14 per cent of all its iPhones in India which is expected to touch 25 per cent in the upcoming 3 to 4 years. As a part of this effort, the company is aiming to develop a network of local suppliers for the reduction of excessive reliance on Chinese suppliers. Moreover, the company is empowered by the Indian government for the manufacturing of its all product portfolio in India, including MacBooks, AirPods and iMacs, in the upcoming years.
FAQ
Where are the four new Apple stores going to be opened in India?
Pune, Bengaluru, Mumbai, and Delhi-NCR.
How successful were the first two Apple stores in Mumbai and Delhi?
The company launched its first two retail stores in India in April 2023, which are located at BKC in Mumbai and at Saket in New Delhi. This initiative has been proven as the most successful for the company as a sales revenue of around 190 to 210 crore has been reported during the first year of the opening of the stores. Since its establishment in April 2023, each store has been accountable for generating monthly average sales of Rs. 16 to 17 crore.
What is the current market share of the iPhone in the Indian smartphone market as of May 2024?
As of May 2024, there is around 4.11 per cent market share of iPhone in the smartphone market of India.
With whom is Apple collaborating for the production of the iPhone 16 lineup in India?
As per the report, Apple is found to be collaborating with Pegatron, Foxconn, and Tata Electronics for the production of these devices. Foxconn and Tata Electronics are accountable for the production of iPhone 16 and 16 Plus models. On the other side, Pegatron will focus on the manufacturing of iPhone 16 and 16 Pro.
How is the Make in India initiative benefiting the manufacturing strategy of iPhones?
Currently, 1 in 7 iPhones are found to be manufactured in this country. Apart from manufacturing, the company is also engaged in sourcing the raw materials for the phones locally from the country. Around 14 billion US dollars worth of iPhones has been assembled by the company in India in the financial year 2024. The company currently manufactures 14 per cent of all its iPhones in India which is expected to touch 25 per cent in the upcoming 3 to 4 years.