A popular TV show in India by the name of ET Now interviewed Raj Shankar, Managing Director of Redington, a major Apple distributor. He was asked whether or not Apple wanting to open their own flagship stores in India was seen as a threat to their relationship going forward.

ET Now: Apple is trying to come to India and they want to start their own stores. There has been talk in the past that Apple wants to increase their number of distributors in India. I know Apple is one of your mainstays but considering that Apple now is committed to follow a rather different business model could that cannibalize your existing business with Apple?

Raj Shankar: So the first point for the current year this is probably not well understood notwithstanding that from a one of two distributor two years ago last year we were one of four distributors for Apple iPhone. In spite of that overall for Q4 Redington India grew the India business by 7%. Now, if you look at the full year for Apple, we grew by 31% so the first submission which I want to make which is probably not well understood is that Redington is one of the leading distributors for Apple in India distributing the iPad, Mac, iPhone, Apple Watch, etc.

Now as they get into Apple stores if and when that happens our view is that this is going to help bring about a very good consumer experience. The whole intention of Apple is not so much to cannibalise the distribution business and do directly through their own stores, in fact their whole purpose is to bring in a heightened level of interest in their products and also bring about a heightened level of consumer experience. So, our view is we do not look at that as a threat, in fact, we look at that as an opportunity that as Apple grows their demand for Apple iPhones in India, our distribution opportunity will only expand.

ET Now: But are you not worried that globally sales of Apple are actually taking a hit, I mean they did not report a loss but the sales have definitely gone down as oppose to what they have done in the previous quarter because of fierce competition even in the Indian markets and influx of cheaper variants available from China?

Raj Shankar: It is a great point I subscribe to what you say. Factually iPhone globally has degrown by 16% year on year but in India Apple has grown their business by a very strong double digit. Secondly as I mentioned Redington without me being a little too audacious or a little bit bragging our strength even though many product categories experience a decline, for instance, PCs degrown in India by 8%, we grew by 6%. Outside India in Middle East, Turkey, Africa PCs degrew by 28%, we grew by 10%. So the point I want to make is Redington is a very formidable distributor with every brand, every product in every market we have leadership position.

So, for us we look at this as an opportunity because iPhone in India is still growing and poised for a much bigger growth in the years to come.

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