Apple CEO Tim Cook confirms first India Apple Store will open in 2021
Apple will be opening its first retail outlet in India in 2021, CEO Tim Cook has advised to shareholders, marking the iPhone maker's initial self-owned outlet in an important potential market.
Speaking to investors at the annual shareholder meeting at Apple Park on Wednesday, Cook answered a question from a shareholder about its India retail strategy. In response, Cook confirmed it will be opening its first physical retail outlet in the country in 2021.
Cook offered a further reason for opening up its own outlet, suggesting "I don't want somebody else to run the brand for us."
So far, Apple has had to rely on a network of third-party resellers to sell its iPhones in the country, without any first-party representation. Government restrictions over stores owned by non-Indian firms have caused problems with Apple's creation of an outlet, forcing the retail partnerships.
"We wouldn't be a very good partner in retail," Cook said in response to a question about India. "We like to do things our way."
The Indian government has been loosening its local-sourcing requirements, which are a prerequisite for international firms like Apple to do business directly in the country. One major rule change in Apple's favor is allowing exports to count towards the 30% local sourcing rule, which covers any iPhones or other products locally-produced by Foxconn or Wistron in the country and exported to other territories.
In October, it was reported Apple had leased a location between 20,000 and 25,000 square feet in Mumbai's Maker Maxity mall, spread over three floors. One floor is rumored to be an experience center, a second would be dedicated to retailing, and a third for the service center.
Apple is also anticipated to start online sales in India in late 2020.
Speaking to investors at the annual shareholder meeting at Apple Park on Wednesday, Cook answered a question from a shareholder about its India retail strategy. In response, Cook confirmed it will be opening its first physical retail outlet in the country in 2021.
Cook offered a further reason for opening up its own outlet, suggesting "I don't want somebody else to run the brand for us."
So far, Apple has had to rely on a network of third-party resellers to sell its iPhones in the country, without any first-party representation. Government restrictions over stores owned by non-Indian firms have caused problems with Apple's creation of an outlet, forcing the retail partnerships.
"We wouldn't be a very good partner in retail," Cook said in response to a question about India. "We like to do things our way."
The Indian government has been loosening its local-sourcing requirements, which are a prerequisite for international firms like Apple to do business directly in the country. One major rule change in Apple's favor is allowing exports to count towards the 30% local sourcing rule, which covers any iPhones or other products locally-produced by Foxconn or Wistron in the country and exported to other territories.
In October, it was reported Apple had leased a location between 20,000 and 25,000 square feet in Mumbai's Maker Maxity mall, spread over three floors. One floor is rumored to be an experience center, a second would be dedicated to retailing, and a third for the service center.
Apple is also anticipated to start online sales in India in late 2020.
Comments
How is India any different?
I assume iPhones are already sold within India’s wireless providers stores... Are they not 3rd parties?
It’s great Apple will have their own branded stores, but it’s probably about selling accessories and getting their cut, and not ‘doing things our way’.
The problem is many Indians believe iPhones are just another Android. They don't know iPhone is THE iPhone.
I disagree. Apple creates and cultivates the owner and user experience literally from day 1. By establishing its own retail presence, it has control over how it presents itself to the Indian consumer - both currently ready to buy and aspirational consumers. Stores also create meeting places, ecosystem introductions, and additional product evaluations and sales. Sure, accessories is part of it, but Apple is looking way beyond that, it is literally explaining and showing itself to the entire country. Having an Apple Store is, IMO, a prestigious event and a sign that Apple is seriously investing in India as it has in other major countries. That will make Indians proud to consider buying Made in India iPhones and other models exported in.
Another factor is the huge variability in pricing, discounts, and product knowledge that 3rd party shops have or lack which severely diluted Apple’s primary message - who and what Apple is all about. A single brand store can uniquely tell its own story without competitors’ products or sales vying for attention. The buzz created by any Apple Store Indian visitor or new Apple product owner will be magnified many times over on social media and user groups. Classes, training, service, the sales and new owner experiences, heck, even the unboxing is all new to them - so positive experiences will reflect positively on Apple’s reputation and help it grow and prosper in India as it has elsewhere in the world. We here in the US have gotten used to that but new users get a chance to be “delighted” in “magical” ways. This increases desire which increases demand, which eventually leads to more sales. If the product, user and ownership experience is superior, that leads to customer satisfaction, sticky retention, and long term growth through new Apple owners and Android conquest conversions. Long term win-win business model. Apple products of course will not be for everyone, but with models across most price ranges and the newer “low” cost model coming, there is an excellent case for Apple growth in India.
Apple Store success worldwide is the reason why so many copy cat Stores of other brands (Microsoft, Samsung, Bose, etc.) sprang up but have so little foot traffic - you can copy the look but they don’t have the product or ecosystem. In China there are even FAKE Apple Stores literally down to fake logos and fake Android-as-iOS copy products, all trying to coattail on Apple’s success.