Apple is looking at giant iPhone expansion in India at both retail & manufacturing.
Apple Inc. is a global American technology firm headquartered in Cupertino, California. Apple is the world’s largest firm by market capitalization as of June 2022, the fourth-largest personal computer vendor by unit sales, the second-largest producer of mobile phones, and the most significant technological business by revenue (totalling US$365.8 billion in 2021). Together with Alphabet, Amazon, Microsoft, and Meta, it is one of the Big Five American IT firms.
On Monday, the Economic Times claimed that Indian conglomerate Tata Group, which produces everything from salt to software, planned to open 100 stores selling Apple Inc. products. According to the article, Croma, a chain of consumer electronics stores owned by the Tata Group’s Infiniti Retail, would open outlets in the neighbourhood, high-street, and mall sites as an Apple-authorized reseller. A retail consultant knowledgeable about the situation informed the publication that Tata had started talks with high-end malls and high streets. The lease agreements specify which brands and stores cannot be opened next to these outlets. Calls and emails from Reuters seeking comment from Apple and Tata Group were not immediately returned.
The most recent development occurred less than two weeks after the Economic Times published a report claiming that the Tata Group was negotiating to purchase the only manufacturing site in India of Wistron Corp. for up to 50 billion rupees ($605 million).
According to sources on Monday, Apple is contemplating expansion in India for its retail and production units, including 100 new franchise stores and a tripling iPhone production over the next two years.
For some time now, Apple has planned and thought about moving parts of its supply chain from China to other nations. The changes could significantly affect India’s manufacturing capacity even though they will generally go slowly. Following a significant expansion of facilities in the country, a top industry executive who spoke to Mint said that Apple would attempt to increase its iPhone production in India over the next two years.
“They’re looking to scale up the volumes that they make from India it can rise by more than three times what they aim to make this year,” the unnamed executive said.
With major assembly partner Foxconn taking significant independent action, there are plans to grow to manufacture in India. According to a November report, Foxconn plans to treble its staff in India over two years.
Additionally, Foxconn is expanding its chip manufacturing operations nationwide with a $500 million investment made in December. There is a good chance that some funding will be used for Apple-related things. The Times of India claims that Tata Group wants to boost the number of Apple Stores in India that franchisees run at the other end of the supply chain. The partnership for the initiative will be made by Infinity Retail, the network of Croma stores’ owners.
According to those acquainted with the project, plans call for Infiniti Retail to join the Apple franchisee programme and launch 100 stores in shopping centres and high-traffic areas. Smaller than Apple Premium Reseller locations, over 1,000 square feet, the stores will be Apple Authorized Resellers, measuring between 500 and 600 square feet each. The iPhone, iPad, and Apple Watch will be sold in smaller stores, but there will also be some larger ones that carry the whole Apple product line. Currently, it’s estimated that India has 160 Apple Premium Reseller locations overall.
The expansion announcement coincides with Apple’s anticipated opening of its first independent storefront in India. Apple is expected to open its flagship location in Mumbai in the first quarter of 2023.
