New Delhi, December 8 – It seems that Apple is finally taking the Indian market seriously. The company, which in the past has said that India is a low priority market compared to something like China, is now planning to open — possibly in partnership with local retailers — 500 exclusive stores here.
According to a report in Times of India, the move is aimed at pushing Apple products into tier 2 and tier 3 cities. “All this will change now. The company is finalising plans to become a serious player in India, which is being seen as a strategic and one of the most promising markets globally,” a top company source told Times Of India.
While a more robust retail strategy will obviously help Apple, it remains to be seen if the company will also play the price game or not. India is a very price-sensitive market, something that is evident from the success that the iPhone 4 registered after it received a price cut last year.
Even though it was an old phone compared to Android counterparts, the iPhone 4 sold well once its price came down to around Rs.20,000. Compared to companies like Samsung and Micromax, Apple’s market share in Indian phone market is less than 5 per cent.
In the tablet market, the scene is slightly better for the company but even there it has less than 10 per cent market share. Sources told the Times Of India that the Apple-exclusive stores will be smaller in size and could range from 300-600 sq ft against over 2,000 sq ft existing stores.
For Apple, this is a change in its earlier stance. For example in 2012, Apple CEO Tim Coook had said that he loved India but did not see much business here. “I love India, but I believe Apple has some higher potential in the intermediate term in some other countries.
This doesn’t mean we’re not putting emphasis in India. We have a business there and it’s growing but my own perspective is that in the intermediate term there will be larger opportunities outside (the country),” he had said.
-INDIA TODAY
