The Economic Times stated on December 12 that Tata Group may soon launch modest exclusive Apple stores in India. According to reports, Apple is working with Tata-owned Infiniti Retail, which operates the Croma stores chain. According to the article, Infiniti Retail is slated to become an Apple franchisee partner, with the intention of creating 100 such units of 500-600 sq ft each in malls, high streets, and neighborhood sites.
As per a retail expert familiar with the idea, Tata has already begun talks with luxury malls and high streets for space. He noted that the lease agreements specify which brands and stores are prohibited from opening near the stores. According to the ET, this is comparable to the terms that Apple requires.
Apple India and Infiniti Retail did not respond to requests for comment from ET. The Tata-Apple cooperation comes as Apple prepares to open its first company-owned flagship shop in Mumbai in the March quarter.
Apple Premium Reseller stores, which are typically more than 1,000 square feet, are larger than Apple Authorised Reseller stores. Smaller Apple stores will primarily sell iPhones, iPads, and watches. Whereas premium Apple stores will sell the whole Apple product line, including MacBooks.
India now has 160 Apple Premium Reseller stores. According to industry analysts, Apple reminded its local franchise partners that company-owned stores boost sales for both partners and retailers. According to CyberMedia Research (CMR), the number of iPhones sold in India between July and September was above 1.7 million. Apple is focusing on increasing sales in India and intends to expand its manufacturing capacity.
Manufacturing
According to another source, it has also instructed the three Indian manufacturers, Wistron, Foxconn, and Pegatron, to increase their output in the next two years. To that end, the Cupertino-based computer behemoth is expanding its workforce and assembly lines.
They intend to increase the volumes they produce in India. An industry executive told sources that it might climb by more than three times what they expect to make this year. With this, India may be allowed to export iPhones built in India. The news comes less than two weeks after the Economic Times claimed that the Tata Group was in talks to buy Wistron Corp’s sole manufacturing site in India for much to 50 billion rupees ($605 million).
According to Bloomberg, Tata and Taiwan’s Wistron, one of Apple’s top vendors in India, were in talks to establish a joint venture to make iPhones in India. Apple has long planned to open an exclusive retail presence in India. The company had planned to build its first store in Mumbai this year. But, the pandemic appears to have thwarted those ambitions.
However, with increasing demand for iPhones across various consumer segments, and its strong rise in 2022 because of holiday season sales, it is likely that Apple now sees this region as a critical market for its future in this region. Having small storefronts contradicts Apple’s traditional strategy since its big-format stores in various nations have often been 1,000 square feet or larger.
Since the iPhone 6S, Apple has begun producing iPhones in India. It currently manufactures the iPhone 14 vanilla model locally with its partners. With Apple’s over-reliance on China for production proving costly, the company sees India as a good manufacturing alternative, and it may soon begin producing iPads in the nation as well.
About Tata Group
The Tata Group is India’s largest conglomerate, founded in 1868. It has products and services in more than 150 nations with operations in 100 countries across six continents.
Each Tata firm functions independently, with its own board of directors and shareholders guiding and supervising it. Philanthropic trusts own 66% of Tata Sons, whereas the Tata family owns only a minor percentage.
Also Read : BMW XM now available in Indian market at Rs 2.60 crore
135 total views, 2 views today