Apple Growth: How The Tech Giant Seeks To Expand Into India

Apple will soon make some long-awaited moves toward expanding its presence in India. At the company’s annual shareholders’ meeting, CEO Tim Cook announced Wednesday that the tech giant would be opening its first physical stores in India by 2021. Cook also said that Apple would begin online sales in the lucrative country this year.

India is the second-biggest market for smartphones in the world. With Apple sales recently stalling in China due to competition from Huawei and Samsung, the company has been looking for other markets to expand overseas. A move into India has been expected for some time.

“I’m a huge believer in the opportunity in India,” Cook said. “It's not simple and straightforward by any stretch of the imagination, but it’s a country with a vibrancy and demographics that are just unparalleled.”

Local regulations had for a long time kept Apple from opening a physical location in India. Previously, the country’s laws prevented foreign company’s from opening single-brand stores, forcing Apple to sell its products with local third-party partners. These regulations were amended in 2018, allowing Apple to make a move.

“We like to do things our way,” Cook said.

Indian laws also required that Apple source 30% of the materials for its products locally. Apple has attempted to gain exemption from this rule.

The company is now awaiting approval from the Indian government before moving ahead with its plans.

Cook declined to comment further on the matter.

Cracking the Indian market will nevertheless present several obstacles for the company. While India presents a huge potential market with around 900 million people yet to purchase a smartphone, the cheapest premium iPhone available in the country, the XS, costs $1,430. This is a tall order in a developing nation where the average annual wage is $2,000. Even budget products like the $270 iPhone 6S would be a major investment for most Indian consumers.