Apple's first India retail store, Apple BKC, opened its doors to customers on April 18 in Mumbai, nearly three years after it debuted its online store in the country and more than 25 years after it began operations here.
The opening of this 20,000-square-foot store signals Apple's growing ambitions in the world's second-largest smartphone market, which has grown in importance for the company in terms of both sales and manufacturing capabilities in recent years. Following the opening of the Mumbai store, the company will inaugurate another outlet called Apple Saket in Delhi on April 20.
Apple said last week that the launch of new stores marks a significant expansion of its operations in the country that will allow customers new ways to browse, discover, and buy the company's products with "exceptional" service and experiences.
With this, India will join the ranks of countries where Apple has retail outlets, including the United States, Canada, Australia, China, the United Kingdom, and the United Arab Emirates.
Apple has approximately 521 stores worldwide, which contribute a significant portion of its revenue. Prior to the opening of this store, Apple relied on a network of third-party distributors, retail partners, and online platforms to sell its products in the country.
Read: Apple BKC store opens today in Mumbai. Here's a sneak peek
In an indication of India's rising importance for Apple, the company chief executive Tim Cook is also visiting the country after nearly seven years to inaugurate these outlets.
At the Mumbai launch event, Cook was joined by Deirdre O'Brien, Apple's senior vice president of retail, who welcomed the first few customers to the store.
"The energy, creativity, and passion in Mumbai is incredible! We are so excited to open Apple BKC — our first store in India" Tim Cook said in a tweet on April 18.
During his India trip, Cook is expected to meet Prime Minister Narendra Modi and the Union Minister of State for Electronics and Information Technology Rajeev Chandrasekhar. On April 17, he met India's top business stalwarts, including Reliance Industries chairman Mukesh Ambani and Tata Sons chairman N Chandrasekaran.
Prior to his visit, Cook had said in a statement that the company is excited to build on its over 25-year history in the country by supporting its customers, investing in local communities, and working together to "build a better future with innovations that serve humanity"
"India has such a beautiful culture and an incredible energy," he said.
Cook's visit to India comes at a time when Apple has clocked record revenue growth in terms of iPhone sales in India in the recent quarters. Apple's sales in India are reported to have jumped to nearly $6 billion in FY23 from $4 billion in FY22.
In February, Cook had stated during the company's earnings conference call that India is a "hugely exciting market" for the Cupertino tech giant, and the iPhone maker is putting a lot of emphasis on the world's second-largest mobile phone market.
Apple also witnessed "record levels" of people switching to iPhone in the country and they are taking several measures to increase the iPhone adoption in the country by making it more affordable through various financing options and trade-ins, he said.
Read: Apple’s first India store 'Apple BKC' will be one of its most sustainable in the world
Apple is currently the leader in India's premium smartphone market (above Rs 30,000) and the country's smartphone market in terms of shipment value in Q4 2022, according to the market research firm Counterpoint Research. It clocked record shipments of over 6.5 million in 2022, registering a 16% growth YoY, the firm noted.
That said, the company's overall market share in the country's smartphone market is still modest, at an estimated 5 percent.
Delhi and Mumbai are two of Apple's largest cities, accounting for about 11 percent and 10 percent of iPhone sales in India, respectively, as per Counterpoint Research's city level tracker. Bengaluru is the third-largest market with 6 percent.
In the making for years
Apple's plan to open retail stores in India has been in the works for years. Following the government's relaxation of FDI norms in single brand retail in 2019, Apple stated that they "look forward to welcoming customers to its first company-owned retail stores."
The company had planned to open its first retail store in India in 2021, but the Covid-19 pandemic forced a delay.
These stores are expected to help Apple gain a stronger foothold in the country, at a time when Indian customers are buying more premium products across various product categories.
Read: Apple's first India retail store launch comes amid a booming premium market
Apple's differentiated experience through its own stores will attract premium consumers, which will likely boost the company's sales in the country, Navkendar Singh, associate vice president at IDC India earlier told Moneycontrol.
"The premium Indian consumer is maturing and spending more, which makes India the next big growth market in the next decade for Apple – across product and service categories," he said.
The launch will also help Apple get a tighter control over user experience, which will further strengthen its brand image and relationship with customers in the company's product and services ecosystem, Tarun Pathak, research director at Counterpoint Research also told Moneycontrol.
Apple's Make in India push
These developments come at a time when Apple is betting on India to become a key global manufacturing hub as the company looks to diversify its manufacturing capabilities beyond China amid rising US-China tensions, thanks in part to incentives provided by the government through its production-linked incentive (PLI) scheme.
The company currently manufactures iPhones in India, including the latest iPhone 14, through contract manufacturers such as Foxconn, Wistron, and Pegatron, with plans to expand into other products such as its wireless headphones AirPods.
Apple has exported about $5 billion-$5.5 billion worth of iPhones from India in FY23, accounting for nearly half of the country's mobile phone exports, according to industry estimates.
The Cupertino tech giant captured 25 percent of 'Made in India' smartphone shipments in terms of value in 2022, as compared to 12 percent in 2021, as per Counterpoint Research. The company's ‘Made in India’ shipments grew by 65 percent year-on-year (YoY) by volume and 162 percent YoY by value in 2022, it said.
Foxconn and Wistron were the fastest-growing manufacturers among the top 10 in Q4 2022, fuelled by increasing exports from Apple, the report added. Apple's work with Indian suppliers of all sizes supports hundreds of thousands of jobs across the country, the company stated in April 18.
In January 2023, India's Commerce and Industry Minister Piyush Goyal said that Apple already has about "5-7 percent of its global manufacturing in India and is targeting to go up to 25% of global manufacturing from India with the most recent models of the iPhone being launched in India."
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