Apple Opens First Online Store In India, Just Ahead Of Lucrative Hindu Holiday Season

After operating in India for more than two decades, Apple (AAPL) has finally introduced its first online store in the subcontinent on Wednesday.

Apple’s products and support services will now be available directly to Indian customers for the first time in the world’s second largest smartphone market after China.

Indians previously had to depend upon third-party partners like Apple Premium Resellers for such sales and support.

“We’re proud to be expanding in India and want to do all we can to support our customers and their communities,” said Deirdre O’Brien, an Apple senior vice president. “We know our users are relying on technology to stay connected, engage in learning, and tap into their creativity, and by bringing the Apple Store online to India, we are offering our customers the very best of Apple at this important time.”

Apple also plans to open its first physical retail store in India sometime next year.

“Apart from offering a showcase for the Apple products, the online store will increase a sense of belonging for the consumers,” said Sachin Mehta, a market analyst at research firm IDC. “Exclusive customer support through troubleshooting, financing schemes and buyback options will be the driving factors.”

The launch of the online store comes just ahead of the Hindu festival holiday season, one of the most lucrative periods for high-tech product sales in the country.

Navkendar Singh, mobile device researcher at IDC-India, told Financial Times that foreign companies like Apple can now sell directly to Indian customers because last year the government of Prime Minister Narendra Modi eased regulations – partly to take advantage of worsening U.S.-China relations and to help revive a weakening economy.

“The Indian government would love to develop the country as a manufacturing alternative to China,” Singh said. “It’s a marquee brand for the Indian government initiative – when Apple starts making in India, it’s a symbol of pride and prestige.”

Tarun Pathak, analyst at Counterpoint Research in Gurgaon, India, said for Apple, the online store “brings them a significant advantage to draw people into the ecosystem.”

“Tech companies want to be in countries that can provide scale to them, and India is one of those countries. It has not only domestic consumption but a huge opportunity for export,” Pathak said.

But there are worries about how the worsening COVID-19 crisis will impact sales.

“This season will be crucial for a lot of the brands hit by COVID-19,” Pathak said. “There will be an uptick in sales for sure, we just don’t know how big.”