Description
Tim Cook to open the first Apple Stores in India this week Apple Inc.'s sales in India hit a new high of nearly $6 billion in the year to March, underscoring the growing importance of the market for the iPhone maker as CEO Tim Cook arrives in the country to open its first stores. local stores. Revenue in India rose nearly 50% from $4.1 billion a year earlier, according to a person familiar with the matter, who asked not to be named because the information is not public. Apple is expected to release its quarterly results on May 4 and has signaled that it expects total worldwide revenue to decline.
Cook is set to open the first Apple Stores in India this week, seeking to accelerate growth in a country of 1.4 billion people where the company's smartphones and computers have never held more than a small share of the market because of their high price. cost. With technology demand slowing globally, Apple has identified India's growing middle class as an attractive opportunity and is also adding local production at an increasing rate.
Apple, which until now has relied on retail partners and online sales in India, did not respond to a request for comment.
The company launched its online store in India in 2020 and its sales campaign is expected to gain momentum by opening its first local store in an upscale shopping district of Mumbai on Tuesday. Two days later, he plans to open a store in New Delhi.
Apple's sales in India surged during the pandemic as customers bought iPhones and iPads to work and study from home. And that momentum continued, helped by financing and trade options.
However, its base is small: about 4% of India's roughly 700 million smartphone users own iPhones, as the world's second-largest mobile phone market is led by cheaper local brands as well as by Chinese and southern manufacturers. But the Cupertino, California-based company ranked first in device unit sales above $365 last year, according to researcher Counterpoint.
Apple Stores serve as key retail outlets and storefronts for the world's most valuable company, while often becoming tourist hotspots. Crucially, the new Indian shops will also serve as help desks, a potential point of sale, as they facilitate product returns and repairs.
The company does not detail Indian income on its tax returns, but is required to report annual sales in the country to local authorities. For the year to March 2022, it recorded sales of Rs 333.8 billion ($4.1 billion).
Although this represents less than 2% of Apple's global revenue, the importance of the market is growing and the company is also expanding its local manufacturing footprint. Apple tripled production to more than $7 billion of iPhones in India last year, as part of an effort to reduce its reliance on China as tensions between Washington and Beijing continue to escalate.
Cook's foray into India also means facing risks such as India's notoriously high import tariffs on everything from components to finished goods, affecting retail prices and demand. The country is also known for its sudden changes in rules and regulations, which can expose businesses to unexpected costs. However, the growth potential of the market makes it hard to ignore.
"India is an extremely exciting market for us and a top priority," Cook said on an earnings call in February. "We put a lot of emphasis on the market."
