Apple Inc. (NASDAQ:AAPL) recently agreed to a retail expansion in India that includes 500 reseller storefronts which will pop up in underserved areas of the country.
The Times of India reported this citing an unnamed source close to Apple Inc. (NASDAQ:AAPL). The iPhone maker wants to increase its presence in the Indian market which is currently dominated by major rival Samsung. The source reported, “All this will change now. The company is finalizing plans to become a serious player in India, which is being seen as a strategic and one of the most promising markets globally.”
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Apple hopes to dominate India’s market
Another source close to Apple reports iPhone sales will triple next year. The current calendar running through September, the tech giant sold about 1 million phones in India. The expansion could increase that number to over three million. The report also indicates Apple will involve local distributors including Ingram Micro and Redington, companies that parse iOS products for resellers and regional distributors.
The source added, “We are amazed at the purchasing power in smaller towns. The primary objective is to give a better and proper experience with adequate product demonstration.”
Expansion could include smaller cities
The new stores could take on a franchise model led by Redington. The franchise model will reportedly range from 300 to 600 square feet, which is quite a step down from over 2,000 square-foot outlets operating in major metro areas. This recent report is quite similar to a rumor from earlier this year which claimed Apple planned to open up smaller shops in India’s smaller cities. Right now Apple Inc. (NASDAQ:AAPL) already has a presence in big cities like Mumbai, Bangalore, Delhi, Chennai, and Kolkata. The company now hopes to reach smaller areas including Nasik, Moga, Trichy, Amritstar, Pathankot, Coimbatore and Nagpur.
The source believes there is a very high potential for Apple products in smaller towns.
via: The Economic Times