Apple’s India strategy taps deep demand

New reports from Apple’s latest retail locations in India indicate strong demand for the tech giant’s products in a market of major focus as its first two stores set electronics sales records.

Why it matters

Apple’s Mumbai (pictured) and New Delhi stores, which opened in late April, were not only a sign of a pivot towards India as a source of new sales in a high-potential market, but also for manufacturing operations as it moves away from its reliance on China.

Of course, new device sales aren’t the end of the process: the iPhone maker’s deeper services strategy, including its burgeoning advertising business, will be key to its India strategy.

The story

First reported in the Economic Times, industry executives aware of the stores’ performance tell the paper that they have made gross monthly sales of ₹22-25 crore ($266,9326 to $303,325).

Largely, one source says, it’s down to “the fact that the average selling price of Apple products is much higher, which leads to higher revenue,” adding that sales “have far exceeded” Apple’s own internal estimates.

In context

• The presence of the stores is somewhat symbolic, as the figures are a small part of the $6bn of sales the company made in India in 2022.
• Overall India sales are expected to grow 31% this year, a strong subsequent act on 2022’s nearly 50% year-on-year growth.
• More broadly, new product sales are only part of the strategy in a relatively price-sensitive market like India, where a lot of potential to bring people into Apple’s ecosystem exists alongside the aspirational purchases of the fast-growing middle class.

Sourced from the Economic Times, WARC, Reuters 

[Image: Apple]