The first real Apple stores are being opened in India this week by CEO Tim Cook, a significant step for the iPhone manufacturer in the second-largest smartphone market in the world.
At the business’s new Mumbai location, which opened Tuesday, Cook was spotted personally greeting clients as staff members applauded and applauded. Thursday’s opening of a second store in Delhi is generally anticipated to feature him.
The action is being taken as the most valuable corporation in the world continues to shift its focus to India, recognizing the potential of that country as a consumer market and a manufacturing hub.
In a statement released on Monday, Cook emphasized Apple’s continued growth in the nation and noted that the company’s opening of its first brick-and-mortar store there came on the heels of its 25th year of operations.
He praised the great energy and wonderful culture of India. “We’re excited to build on our long history, supporting our customers, investing in local communities, and working together to build a better future.”The new Apple (AAPL) store in Mumbai, which is housed at a building owned by Mukesh Ambani’s conglomerate Reliance Industries, was given a sneak peek in a separate announcement on Monday.
As one of its “most energy-efficient” locations worldwide, the firm touts the store, claiming that solar panels enable it to function entirely on renewable energy.
Requests for additional comments and information about Cook’s visit went unanswered by Apple.
aims to open a store
Even though Apple (SSNLF) is the second-largest smartphone manufacturer in the world, its 6% market share in India is still minuscule.
It is outclassed by the top five suppliers in the nation, which are Xiaomi and Vivo of China and Samsung of South Korea, respectively. Many customers in the nation believe that Apple items are too pricey.
According to the most recent government figures, the average monthly wage in India for normal full-time employees is 18,585 rupees ($226.5). Comparatively, the entry-level iPhone 14 costs 79,900 rupees ($973.6), while the less expensive iPhone SE costs 49,900 rupees ($608).
However, as it continues to expand its retail presence there and more customers switch to high-end devices, Apple’s position is predicted to improve.Hanish Bhatia, associate director at Counterpoint Research, says that India’s large population, growing middle class, and potential for consumer demand growth as people migrate from feature phones to smartphones make it a promising market for enterprises.
However, up until this point, Apple has only been able to do so via third-party resellers or online.
This is due to the fact that the corporation, along with other foreign retailers, were for years prohibited from opening stores in the nation unless they acquired at least 30% of its raw materials domestically, forcing them to rely on local partners. 2019. Restrictions were loosened by the Indian government.
In India, Apple opened an online store in 2020 that gave users the ability to purchase the company’s goods and, for the first time, customize some devices.The Covid-19 pandemic has delayed Apple’s original goal to open its first physical location in the nation in 2021.
Sanyam Chaurasia, a Canalys mobility analyst, claimed that the shops will enable Apple to bring all of its products “under one roof” and influence more customers to make purchases.
According to him, brick-and-mortar stores where customers can physically touch and feel the item still dominate the luxury smartphone market, where Apple competes.
Senior analyst at Counterpoint Research Prachir Singh agreed, stating that Delhi and Mumbai are the two most important Indian markets for Apple. He also stressed the importance of the new stores’ locations.
For instance, 10% of all iPhone purchases in India come from Mumbai, according to Singh.
stronghold of manufacturing
In 2017, Apple started producing iPhones in India, and since then, the country has seen a steady increase in production.
Following supply chain hiccups in mainland China, where the majority of its smartphone manufacturing is done, it has noticeably increased production there in recent months.
According to Counterpoint, Apple considerably increased its Indian exports last year, shipping 65% more iPhones from the nation than the year before. In the final quarter of 2022, Foxconn and Wistron, two of Apple’s major contract manufacturers, had the fastest growth rates among Indian manufacturers, according to the company.
Young Liu, the CEO of Foxconn, spent a week in the nation last month and met with Narendra Modi.
According to a statement released by Apple on Monday, the business was collaborating with suppliers to “produce a growing number of components” in addition to its assembly lines for iPhones.
In August 2022, Foxconn will open its Taiwanese headquarters in New Taipei City.
In search of semiconductor and electric vehicle business in India is Apple supplier Foxconn
According to the company, hundreds of thousands of employment are supported nationwide by Apple’s cooperation with Indian suppliers of all sizes.
More than 1 million developers now work for the company across the country thanks to the growth of its mobile apps division, it continued.
Apple’s stepped-up operations in India are a part of a larger trend of businesses shifting their manufacturing away from China. From less than 10% in 2016 to nearly a fifth expected this year, the south Asian country has considerably increased its share in the world’s smartphone production in recent years.
