Apple stores in India get off to a flying start

Apple stores in India get off to a flying start

Apple’s two company-owned India outlets, which completed their first year of operations this month, have posted revenue of Rs 190-210 crore each last fiscal year, joining the ranks of the iPhone maker’s top-performing retail stores globally.

“The two Apple stores have clocked monthly average sales of Rs 16-17 crore each consistently since their launch. The Mumbai store revenue has been a little higher than the Delhi one due to a larger size,” said an industry executive aware of the matter. “It has met Apple’s expectations, matching some of the best-performing store launches and they are now aggressively scouting space for the next three company-owned stores.”

The US-based company opened the Mumbai store – Apple BKC – on April 18 last year, followed by the one in New Delhi – Apple Saket – two days later. Chief executive Tim Cook had flown to India for the store inaugurations.

As per two industry executives, Apple is in advanced talks for one store each in Pune and Bengaluru and a second outlet in the National Capital Region in Noida. All of these will be in prominent malls.

One of the executives said the company was waiting to complete a year of its first two India stores before finalising on the next phase of expansion.

The average selling prices in the Apple stores is similar to the company average in India.

“Apple will not be happy with just two stores in a market like India. Of course, there are plans to expand. It is a question of when, not if,” a third executive familiar with the matter said, adding that the company also plans to launch its premium mixed-reality headset in India soon.

“One of the prerequisites for launching the Apple Vision Pro in a market is that it should have its own Apple store. There could be an announcement around the same during the upcoming WWDC Developer Conference in June,” the executive added.

In response to ET’s email seeking comment, Apple said it cannot provide guidance on financials or future plans.

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Apple has been doubling down on India – the world’s second largest smartphone market – amid geopolitical tensions and a slump in sales in the key markets of the US and China.

Along with rapid expansion in local manufacturing for domestic use and exports, the Apple store has been a focal point in the US company’s market expansion in India, where it has seen double-digit revenue growth every quarter since the stores opened.

Backed by its deepening and expanding local manufacturing operations, the retail stores underscore Apple’s push to grow its volume and value share in India. It is aiming to reach a double-digit smartphone volume market share in India as soon as possible, from around 7% in 2023.

Industry executives close to Apple said the stores have become a place where customers can experience the products, stating that how the store interacts and serves customers is essentially the same across other global markets. But since these are the very first stores in India, the footfalls are consistently high, especially on the weekends.

“There are both tangible and intangible benefits with the Apple store being in place. The store serves as a point where people can walk in to experience any Apple product being sold here, service their existing products, and get their queries answered,” another industry executive said, asking not to be named.

The stores also help in brand building, making people familiar with the Apple ecosystem through “Today at Apple” sessions, where experts conduct sessions in using Apple products better, this executive said.

An employee at the Apple store in Mumbai’s Bandra Kurla Complex (BKC) said she now knew some of her regular customers by name.

Another employee at the Mumbai store said the store’s location helped footfalls grow month-on-month.

However, these flagship stores are not programmed for sales, say some executives. There are no offers like with the authorised resellers or large-format retail stores like Croma or Reliance Digital.

“Footfalls are the highest when there is a new product launch, and during festivals and weekends,” said the industry executive cited earlier.

“We don’t have discounts here. There are demos; we are here to answer all questions, help set up the device. Otherwise, the experience at resellers is more transactional,” a Delhi store executive said.

Indeed, a Croma store a few steps away from the Apple Store in the same mall has the latest iPhone priced much lower than the Apple store. A Croma store employee said it was common for customers to experience the products at the Apple Store, and buy it from Croma where they get discounts as well as financing options.

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