- Jul 26, 2021
Apple will soon start selling iPhones directly in India through its online store. Apple has made this decision after the Indian government has allowed the foreign single brands to do online business without any brick and mortar store present in the country.
According to an official report, the online Apple Store will be ready to use within the next 3 to 5 months. It will need some time to duplicate the global online store template for the Indian market. In addition to this, Apple has also decided to build up the iconic brick and mortar Apple Store in Mumbai within the next 12 to 18 months.
Government policies play a major role in increasing Apple’s market and business plans in India. The current government policy allows foreign brands to export and manufacture products using the 30% local sourcing norm over five years.
Exclusive brands and retailers like IKEA, H & M, EY, etc, also think that this policy of easing norms for 100% will bring in foreign direct investments in single brands in India. This will also help the retailers to partner up with single foreign brands easily.
Currently, Apple is in an online partnership with Amazon, Flipkart, and Paytm Mall. These online stores sell Apple authorized third party products. One of the Apple executives pointed out that almost 35% to 45% sales of iPhones come from e-commerce. Therefore the farm wants to grab this opportunity and expand its market, “Online is also a big sales driver for iPad tablets and MacBook laptops, and contributes over 25% of annual sales in India”, he stated.
The US farm will be able to meet the local sourcing norms easily now. As reported before, it has already started assembling iPhones in India through contract manufacturers. According to the Executive, Apple has also recently started exporting iPhones from India and is planning to expand it in the near future with the release of newer models.
However, it will take time to set up the physical Apple stores in India because the brand takes them as destination outlets. Another executive from Apple said that Apple stores stand out for their architecture and design; as a result, these places turn out to be famous among the tourists. Therefore the brand must meet standards of the other Apple stores while setting up one in India.