Apple has finalized a list of locations for its first retail store in India, according to sources who spoke to Bloomberg. The vetted locations are said to include several upscale sites in Mumbai that are comparable to iconic Apple stores on Fifth Avenue in New York, Regent Street in London, or the Champs-Elysees in Paris. A final decision on the plans is expected to come "in the next few weeks," said Bloomberg's sources. In the Indian market, Apple ranks 11th and accounts for just one percent of India's phone sales, selling fewer than one million iPhones during the first half of 2018. Comparatively, rival smartphone maker Xiaomi sold "more than 19 million" during that period, according to data gathered by Counterpoint Research. In an effort to revamp the company's presence in India, Apple CEO Tim Cook is believed to be working behind-the-scenes to "remold Apple's failing India strategy," according to both current and former Apple employees who spoke to Bloomberg. This strategy includes better and longer-lasting retail deals with higher sales targets, the opening of official Apple retail stores in India, "overhauling" the company's relationship with independent retailers, and improving apps and services "aimed more closely at Indians." For retail, the official Apple stores are said to open in 2019 and will eventually include locations in New Delhi, Bengaluru, and Mumbai. While the Indian government's rules for foreign companies opening shops have previously prevented Apple from launching local stores, the company now builds some of its iPhone SE and iPhone 6s models in India, which is believed to help it meet India's rule requiring these companies to manufacture 30 percent of their products locally.<doc-sep>NEW DELHI: Apple Inc has finalised a short list of locations for its first retail store in India, according to people familiar with the plans, as the company redoubles its efforts in the world’s fastest-growing smartphone market.The iPhone giant has zeroed in on several upscale sites in Mumbai, and plans to make a final decision in the next few weeks, said the people, asking not to be named because the discussions are private. The vetted spots are comparable to iconic Apple locations on Fifth Avenue in New York, Regent Street in London or the Champs-Elysees in Paris, they said. Apple has been prohibited from opening its own stores in the country because it doesn’t meet local sourcing requirements, but it’s shifting manufacturing into India and is in talks with the government about its retail expansion.The Cupertino, California-based company has struggled to establish itself in India where consumers have opted for less expensive Chinese brands such as Xiaomi and Vivo. But chief executive officer Tim Cook has vowed to improve in the fast-growing market, especially as Apple loses ground in China. Manufacturing in India will also allow the company to sidestep 20 per cent tariffs on imported phones, making its devices more competitive.“India is a very important market in the long term,” Cook said after the company’s earnings report last week. “It’s a challenging market in the short term, but we’re learning a lot. We plan on going in there with sort of all of our might.”Apple doesn’t break out its revenue from India since it’s such a minor part of the business. In the most recent quarter, the company generated 44 per cent of revenue from the Americas and 18 per cent from greater China. India is lumped in with the rest of Asia-Pacific, which altogether account for about 6 per cent..Apple has tried in recent years to gain ground as India eclipsed China as the fastest-growing smartphone market in the world. One Apple veteran took over as country chief at the end of 2017, overhauling its strategy and replacing top sales executives. But with little sign of progress, a new country chief was named in November.Still, Apple continues to flounder in India. Research firm Canalys estimates the company’s shipments fell by more than 75 per cent in the first quarter of 2019, giving it only about 1 per cent of the country’s smartphone market.Now Apple appears to be doing the difficult -- and expensive -- work of building a foundation for its business. Foxconn Technology Group, its most important manufacturing partner, is running quality tests for the iPhone Xr series in India and plans to begin mass production at a facility in the suburbs of Chennai. Older models are already assembled at a Wistron plant in Bangalore. The increase in local operations should expedite approval for a company-owned store when a new government takes over in India at the end of May or early June, said the people.“Its own retail store might be just what Apple requires to reinforce its premium image,” said Rushabh Doshi, an analyst with Canalys. “A store just before the next launch will be the perfect timing for Apple to restart its Indian growth story.”It’s clear Cook won’t give up against Chinese phonemakers that have come to lead the market. “We have made some adjustments in India and we’ve seen preliminarily some better results there,” he said last week during the earnings call.Indeed, last month Apple ran front-page newspaper ads announcing sizable discounts on the latest iPhone XR. The phonemaker, which rarely slashes price on its latest models, has offered a markdown of Rs 17,000 ($244) on its latest iPhone XR, bringing the price down to Rs 59,900. This week online retailer Paytm Mall announced cash paybacks on a variety of iPhone models.“The price cuts are definitely a step in the right direction,” said Doshi. “Apple has a delicate balance to maintain: It needs to appeal to the cost-conscious Indian buyers, while ensuring that price drops do not dilute its premium image.”<doc-sep>Dear Reader, Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance. We, however, have a request. As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed. Support quality journalism and subscribe to Business Standard. Digital Editor<doc-sep>
Congratulations Apple fans, you're about to get the first official Apple store in India. Reports indicate the company has finalised a short list of locations where the store may open up. And good news for Mumbaikars, it's going to be somewhere in your city. Images courtesy: Reuters The iPhone maker has reportedly picked a few upscale sites in Mumbai, and plans to reveal its decision within the next few weeks. Supposedly, the locations are equivalent to Apple's stores on Fifth Avenue in New York, Regent Street in London or the Champs-Elysees in Paris. Basically, it might be the classiest store India has ever seen. Apple had so far been blocked from opening a local store, given that it doesn't source products locally. However, given that the company is shifting a lot of its manufacturing to India for the local market, they're currently in talks with the government to discuss setting up shop here. It's all part of Apple's push to increase its slice of the smartphone market share in India, now that its sales have been stagnating in its other biggest markets, China and the US. Of course, in India they'll still be competing against the likes of Xiaomi, OnePlus, Huawei, and more. Apple's Fifth Avenue store More importantly, aside from opening up a storefront in Mumbai, manufacturing locally will allow them to avoid the 20 percent tariff on imported phones, allowing them to price them cheaper. "India is a very important market in the long term," Cook said while reporting the company's earnings last week. "It's a challenging market in the short term, but we're learning a lot. We plan on going in there with sort of all of our might."