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Apple said to triple retail operations in India by 2015

post #1 of 14
Thread Starter 
In light of the company's recent successes in the country, Apple reportedly plans to dramatically increase its reseller footprint in India growing its presence in the country to more than 200 locations by 2015.

overthinking
Image via Indoan.ru



The details come from India's Economic Times, which reported Tuesday on Apple's plans to increase its Indian presence, apparently confirmed by three unnamed Apple franchisees. The report indicated that Apple will increase the number of "exclusive stores," which are known as Apple Premium Resellers.

While India is an increasingly important market for Apple, the iPhone maker has no Apple retail locations in the country. This is due in part to government mandates that single-brand stores source 30 percent of the goods they sell from local Indian vendors.

As Apple manufactures none of its products in India, the company is instead instructing its resellers to bring their locations up to Apple's global retail specifications. This will include altering the design of the reseller locations, and Apple is reportedly sending in global suppliers to fit out the stores in the company's signature glass decor. Apple will, reportedly, be reimbursing reseller franchise owners for the cost to upgrade.

In addition to the retail outlet upgrade, Apple will considerably expand its reseller operations. By 2015, according to reseller franchise sources, Apple aims to have more than 200 reseller locations in the world's second-most populous country. Currently, Apple sells through around 65 exclusive stores in India.

Reliance Retail, Apple's largest premium seller in the country, says it is looking at several properties for Apple stores. To improve the consumer experience, Reliance executives say the new stores will be based on the designs of Apple's "best stores internationally."

Apple's iPhone is currently in second place in the Indian smartphone market, with its 15.6 percent revenue share lagging far behind Samsung's 38.8 percent share. Acknowledging India as an important market, Apple has introduced payment plans, as the company did in China, to make its devices more affordable to that market.
post #2 of 14

India will become the biggest customer for Apple. Even though Apple (and retailers) does not have many stores, you can see iPhones a lot.  That is because of the traffic of outsourced people who travel between Indian and other countries.  Now, if Apple starts their chain and joins retailers, it is going to become huge market for Apple.  Definitely Indians buy Apple iPhones.  More iPhone.  As there is no direct buying from Stores, people are going for dirty Samsung and Nokia.  

 

Good going Apple.  And, as Indians are more educated, certainly, than China - Indian will be able to appreciate Apple products. 

post #3 of 14
They better get those Apple like stores in India soon! There people are all about show off. Once the trend begins even people who works on the roadside will get (or dream about getting in future) the older iphone models and ipads!
post #4 of 14

But, the iStore (Reliance's Apple store) shown in the picture is not at all good.  

India has really really really better iStores in Hyderabad, Bangalore and New Delhi Etc.

post #5 of 14
Quote:
Originally Posted by helicopterben View Post

They better get those Apple like stores in India soon! There people are all about show off. Once the trend begins even people who works on the roadside will get (or dream about getting in future) the older iphone models and ipads!
 

 Indians are not that far from Technology or Electronics.  People have to pity you that still you are delusional and certainly living in decades past.

post #6 of 14

Apple's sheer growth potential in India and China is Samsung's worst nightmare.

post #7 of 14

Apple should set up some manufacturing in India.

"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
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"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
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post #8 of 14
Quote:
Originally Posted by Dick Applebaum View Post

Apple should set up some manufacturing in India.

Not sure about that.

 

Inbound/outbound logistics and availability of reliable energy are huge issues.

post #9 of 14
Quote:
Originally Posted by anantksundaram View Post

Quote:
Originally Posted by Dick Applebaum View Post

Apple should set up some manufacturing in India.

Not sure about that.

 

Inbound/outbound logistics and availability of reliable energy are huge issues.

 

Moreso than Brazil?

 

besides... You have to start somewhere -- and any effort can only help with local regulations.

"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
- Michael Lille -
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"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
- Michael Lille -
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post #10 of 14
Quote:
Originally Posted by anantksundaram View Post

Apple's sheer growth potential in India and China is Samsung's worst nightmare.

And greatly overlooked by AAPL bears
post #11 of 14
Quote:
Originally Posted by gwmac View Post

"This is due in part to government mandates that single-brand stores source 30 percent of the goods they sell from local Indian vendors. "

Don't you just love laws in other countries that seem so unfair to foreign companies trying to do business there? China, Brazil, and even Japan also have some pretty strict laws requiring native partners usually with a controlling interest in the country. Many other countries won't even allow foreign nationals or companies to even buy land, only lease. Unless it has changed Americans could not buy land in Mexico either, only lease and yet Mexicans here illegally can buy houses no questions asked.

I wish the U.S. would just adopt reciprocity laws with countries. If they won't allow Americans or American companies to buy land then neither can their citizens or countries do the same here.

 

I try to avoid political and religious discussions on the web...

 

 

If you look at the situation logically, reciprocity would only aggravate the situation. 

 

If, as you imply, India's law is a bad law -- the passing of an equivalent law in the US would be equally bad.

 

 

Likely, India's law is there to encourage local industry and avoid foreign dominance... remember British rule of India ended less that 56 years ago.

 

 

I would rather see Apple work within the existing laws -- and go beyond to attempt to benefit both parties.

 

 

@anantksundaram indicated that the lack of transportation and reliable power may discourage/prevent companies like Apple from manufacturing in India to meet the requirements of the law.   I did some surfing and air/water pollution are also major problems.  Oddly, the bulk of the pollution problems are not related to traditional power generation -- rather the individual burning of biomass fuels where no electricity is available.

 

 

In the past, when Apple needed manufacturing capacity, they would often invest in, or buy the machines and infrastructure necessary for production.

 

Potentially, the lack of a clean(er) energy capacity in India could be mitigated by investing in the energy infrastructure necessary to sustain the manufacture/assembly of Apple hardware.

 

The combination of infrastructure investment and actual manufacturing by local factories -- might well meet the requirements of Indian law -- to the satisfaction of both parties.

 

As an AAPL shareholder, and at the risk of being idealistic -- This type of effort can have a positive effect on the whole world -- and could be replicated in other emerging countries.


Edited by Dick Applebaum - 3/26/13 at 12:27pm
"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
- Michael Lille -
Reply
"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
- Michael Lille -
Reply
post #12 of 14
Quote:
Originally Posted by gwmac View Post

Nothing wrong with trying to ensure Americans and our companies get to play on a level playing field in other countries. Not only in terms of buying land or buildings but in regards to taxing imports. How is it helping our economy when our exports are taxed at 50% but we tax their imports at 5%. All that does is encourages more American companies to locate overseas to avoid those taxes. 

 

I agree with the goal of a level playing field...

 

 

However, I believe that moving towards free trade is a better way of attaining that goal -- than moving away from free trade.

 

 

I also believe that laws and policies have use as general guidelines for most situations -- but can be changed or amended when it is in the interest/benefit of the parties involved.

"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
- Michael Lille -
Reply
"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
- Michael Lille -
Reply
post #13 of 14
Quote:
Originally Posted by Chandra69 View Post

 Indians are not that far from Technology or Electronics.  People have to pity you that still you are delusional and certainly living in decades past.
 

You must be kidding right? People in India carry more of Nokia and Samsung.

 

Go back and read my comment- I mentioned that iphone boom can be so great in India that everyone would love to own apple products. Still there are hundreds of millions who cannot afford these expensive products.  Talking about the rich- they own everything from galaxy to iphones to BMWs but they cannot boom the aapl markets alone. Apple needs middle class and lower class family to get involved in a big way- Remember Reliance came out with cellphones? That kind of boom where beggars got one in their pocket!

 

"Indians are not that far from Technology or Electronics" - What electronic products does Indian Company make and sell all over the world? Indians have none of their own technology and they are way behind. Go figure where can you get great reliable high speed internet even in cities like Bombay.  From planes to computers to cell phones to cars everything is made by European and US companies!

 

Chillax Chandra - otherwise you will go into Amavasya lol


Edited by helicopterben - 3/26/13 at 1:29pm
post #14 of 14
Quote:
reseller footprint in India growing its presence in the country to more than 200 locations by 2015.

Funny, TODAY I see more than 250 places where I can buy samsung, nokia phones in radius of 25 miles from my home!

Apple, Indian maker is too different than other markets. Think in the unit of weeks or months and not in years to increase places where consumers can buy products.
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