Apple Inc is planning to set up 500 stores in India, even in smaller cities, according to various media reports.
This move is also aimed at pushing Apple products in tier 2 and tier 3 cities of India. Apple Inc’s key sales come from regions like Bangalore, Mumbai, New Delhi and Kolkata, so these regions will probably receive large outlets similar to the Apple stores across the globe.
Compared to companies such as Samsung and Micromax, Apple’s market share in Indian phone market is less than 5 percent.
Since India doesn’t allow foreign direct investment in single-brand retail, Apple won’t be able to setup its own stores, and will instead have to go the franchise way. The company will offer up to 9.5 percent in margin for every iPhone or iPad sold, of which 5 percent would be upfront and the remaining 4.5% would be given later. It will also offer up to 6 percent margin on accessories, both from Apple and third parties.
Apple’s plans likely involve local distributors Redington and Ingram Micro, which parse out products like the iPhone to Apple Premium Resellers, Apple Authorized Resellers and regional distributors.