Apple to Open its First Store in India in 2021

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Written on Feb 27, 2020
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  • CEO Tim Cook said the company will open its first physical store in India next year, and an online store later this year
  • The technology giant had to seek permission from the Indian government to open a store without partnering up with local firms
  • It was reported in October that Apple had rented a three-floor store in Mumbai’s Maker Maxity mall

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CEO of Apple Tim Cook said the company plans to open its first retail store in India in 2021 as well as an online store later this year.

The tech giant had to require approval from the Indian authorities to open a store without partnering up with a local company.

Apple made the announcement at the annual shareholder meeting at the Apple Park yesterday.

“I’m a huge believer in the opportunity in India,” said Cook. “It’s a country with vibrancy and demographics that are just unparalleled.”

Until now, Apple was partnering up with Indian third-party resellers to sell its devices in the country. The Indian government has been preventing non-Indian companies like Apple from having a first-party representation in the country, forcing them to collaborate with local companies.

“We wouldn’t be a very good partner in retail,” said Mr Cook. “We like to do things our way.”

The electronic device maker’s move into the world’s second-largest smartphone market has been anticipated, but the announcement happened yesterday.

Back in 2018, India passed the bill which prevents non-Indian companies from opening single-brand retail shops in the country, however, India wanted Apple to open a store with a local partner.

Apple currently sells its devices through third-party stores in India, but it struggles against Samsung and Huawei in terms of sales. Moreover, sales in China are weaker, so the company is trying to foster growth in other markets such as India.

The Indian smartphone market is growing at a fast pace, but most of its citizens cannot pay for Apple’s products. As a matter of fact, the market research company Counterpoint says that the large majority of smartphones in India cost $150 or less.

What makes it even harder for Apple is the import tariffs that India imposes on electronic devices. This makes Apple’s products even more expensive in the country.

Several months ago, Apple reportedly rented a place between 20,000 and 25,000 square feet in Mumbai’s Maker Maxity mall, covering three floors. The rumours said the first floor would become an experience center, the second would be reserved for retail, and the third for the service center.

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