Apple, once not too bothered, has started considering India as a country that holds immense potential for its iPhones, iPads and portal music players and according to reports has started talking with local retail chains for dedicated Apple stores and store-in-store options.
According to our sources, Apple executives in India have already held meetings with retail chain owners and executives to open about 50 stores in tier II and tier III cities. This is a strategy shift on Apple’s side which had been focusing on metros up until now. A deeper penetration in India can only be achieved if Apple expands its direct presence in tier II and III cities.
With a target of increasing sales in tune of 30 percent increase year-on-year, Apple need to dig deeper and make inroads into cities like fast developing cities. Apple’s recent tie-ups with Ingram Micro and Reddington have worked well in its favour and because of these companies it was able to ensure that its gadgets are available to a store nearby.
Apple is expected to launch its iPhone 5C and iPhone 5S sometime near Diwali and it may price them at Rs. 30,000-35,0000 and Rs. 40,000-45,000 respectively. If Apple is able to work out partnerships with local retail chains, it could see over the top sales of both the smartphones during the festive season.
Despite the fact that smartphone market in India is one of the fastest in the world, customers give preference to low-priced phones first. This is the reason why local smartphone vendors such as Micromax and Karbonn have managed to garner second and third position in India just behind Samsung.
According a recent report by Mary Meeker, there are about 67 million active smartphone users and there has been a year-on-year growth of over 50 percent in terms of shipments in 2013 with vendors shipping out as many as 9.3 million smartphones as compared to 3.5 million units in the same period of 2012.
Apple has a lot in store if its channels its energy in the right direction in price-sensitive country like India.
