Apple to Support a New Franchise of 500 iOS Stores in India
In 2013 a report came to light that Apple set a goal to have 200 stores selling their products in India. Apple kept negotiating with the Indian Government in 2014 to allow them to open their own flagship Apple Stores but government restrictions were just too demanding. Apple's continuing efforts in India have been bearing fruit with their premium iPhone outselling Samsung's more than two to one earlier this year. With momentum building, Apple's first iPhone 6 allotment in India sold out in 72 hours. Now with Xiaomi setting their sights on India for smartphones and tablets, Apple knows that they have to step up their game in India in 2015. Instead of aiming for 200 stores, the goal now may be to support a plan backing a new franchise of 500 "iOS" stores.
The Economic Times in India reports that Apple is planning to support 500 new stores that will be "'iOS" stores focused on both large cities and smaller towns. Apple sold close to a million iPhones in India in the year ending September 2014 and expects the volume to triple in 2015. Considering that these new stores will be iOS stores, Macs are likely not be a part of the plan.
The report notes that sources close to the matter are claiming that Apple has "tentatively approved" the expansion proposal and will give a final go-ahead very soon, defining all the parameters and phases of expansion. These new stores will be smaller in size and could range from 300-600 square feet instead of the over 2,000 square feet existing stores in the larger cities. The plan is likely to include a franchise model.
Apple is also expected to increase spending for direct advertising in India, apart from publicity undertaken by its distributors.
Although Apple's next big push will provide them with a larger footprint in India, the Indian Government should work with Apple so as to allow them to build a few flagship Apple Stores in the larger cities like Mumbai. Why India wants to remain in the dark ages and fight large employers like Apple is a hard one to comprehend.
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