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April 21, 2023 11:45 am | Updated May 03, 2023 11:34 am IST
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Apple BKC | Photo Credit: Haider Ali Khan
Amid much fanfare, Apple opened its first retail store in Mumbai, India on April 18. Two days later, the company opened another one in Delhi. With these two stores, the iPhone maker is looking to get a closer connect with the Indian consumers.
The Cupertino-based company’s plan must be seen from an Indian consumer perspective on getting the touch-and-feel experience before making a purchase. And if the investment size is larger, then there is all the more impetus to head to a brick-and-mortar store. Such a shopping experience helps customers get a better sense of the product.
Apart from the consumer angle, Apple’s growing dominance in the premium handset market has made the tech giant go beyond the online and reseller model.
Last year, Apple cornered 4% market share with a 17% year-on-year (YoY) increase in its shipments. It shipped nearly $6 billion worth of smartphones in 2022.
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“With stores, they can now help consumers understand Apple deeper, which will result in more consumers, more sales and more satisfaction from consumers,” research firm Techarc said.
A photo of Apple BKC | Photo Credit: Haider Ali Khan
Not really. Apple’s move must be seen in the light of a growing consumer base for premium handsets. The premium smartphone segment in India is growing in double digits for last two years, according to analysis by research firm Cyber Media Research (CMR).
This demand can help the company build a customer base in the country and deepen the connect with the brand. In this scenario, having physical retail stores, coupled with online channels, can expand its revenue in the country. Apple is likely to garner a 6% market share in the next financial year, selling more than 8 million iPhones, CMR notes.
In recent times, due to geopolitics and COVID-19, there has been a strong need for Apple to think of alternative locations and to cut its dependence on China for manufacturing its devices.
India has emerged as the most reliable and secure ally for Apple to shift the focus of its manufacturing. Apple already has Foxconn and Wistron to make iPhones in India since 2017. India’s production-linked incentives scheme has also given a boost to these contract makers to enhance capabilities, and companies like Apple have benefited from it.
Apple devices are already available across online and mainline retail channels. It even has its own online store to sell products. With these new stores or further retail expansions, if any, Apple customers can pick products online or from physical stores as per their convenience.
Aftersales can be a painful experience. Since Apple has ventured into the retail space, it will help in addressing complaints more effectively. Expanding to more cities may increase trust among customers who may otherwise shy away from premium brands.
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technology (general) / The Hindu Explains / gadgets (general) / Mumbai / India
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