Apple applies to open stores in India

Apple, the maker of iPad and iPhone, has sought permission from the government to open single brand retail stores and also enter the e-commerce business in the country. The US tech giant’s move stems from the government’s liberalisation of foreign direct investment rules on single-brand retail in November, which included relaxing mandatory local procurement condition for high-tech companies and allowing single-brand licence holders to sell their products directly online. “We are examining it”, DIPP secretary Amitabh Kant told the newspaper.

India is likely to overtake the United States to become the world’s No. 2 smartphone market in 2017, according to research firm Strategy Analytics. The company likes to use particular kind of material and goods in its stores and that often means importing products like tiles and fixtures.

Apple has filed an application to open a series of stores, according to the report. The application also covers the launch of an Indian version of Apple’s online store.

Apple will also face a challenge in persuading cost-conscious Indian consumers to buy its expensive phones in a market dominated by Chinese-made handsets costing as little as $20.

Impressed by its growth pace in India, Apple has been pushing to open its own retail outlets.

Just two-and-a-half years ago iPhones were only selling in the thousands in India but Apple then switched gears, contracting with multiple, national-level distributors, partnering with banks to back financing, offering deep discounts on older models, boosting marketing and providing buyback plans. During his U.S. visit in September-end, Prime Minister Narendra Modi met Apple CEO Tim Cook and invited him to set up manufacturing facilities in India.