Apple Inc, one of the world's most valuable
electronics makers, is planning to set up 500 stores in India, even in smaller
cities, according to various media reports.
After being on the fringes for long, the company is
finally set to cut loose in the fast-growing Indian phone market. Apple plans
500 'iOS' stores in the country in its first major push. Compared to companies
such as Samsung and Micromax, Apple's market share in Indian phone market is
less than 5 percent.
Since India doesn’t allow foreign direct investment
in single-brand retail, Apple won’t be able to setup its own stores, and will
instead have to go the franchise way. The company will offer up to 9.5 percent
in margin for every iPhone or iPad sold, of which 5 percent would be upfront
and the remaining 4.5% would be given later. It will also offer up to 6 percent
margin on accessories, both from Apple and third parties.
Apple's plans likely involve local distributors
Redington and Ingram Micro, which parse out products like the iPhone to Apple
Premium Resellers, Apple Authorized Resellers and regional distributors.
The company, which recently topped $700 billion in
market cap in the US, has been in India since 2011, but not been a mainline
brand here like many other overseas markets, including China. This is in
contrast to its Korean rival Samsung that dominates the Indian phone market.
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