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Business News/ Technology / News/  Apple India stores record strong first-year sales; tech giant likely to open outlets in Pune, Bengaluru & Noida: Report

Apple India stores record strong first-year sales; tech giant likely to open outlets in Pune, Bengaluru & Noida: Report

Apple's two flagship stores in India, having completed their first year, posted revenue of ₹190-210 crore each, meeting Apple's expectations. The company plans further expansion with new outlets in Pune, Bengaluru, and Noida.

Apple BKC retail store (Representational image) (PTI)Premium
Apple BKC retail store (Representational image) (PTI)

Apple's two flagship stores in India, which completed their first year of operations this month, have reported impressive revenues of 190-210 crore each for the last fiscal year, The Economic Times reported. 

According to an industry insider cited in the ET report, the Apple stores have consistently achieved monthly average sales of 16-17 crore each since their establishment. The Mumbai store has recorded slightly higher revenue, attributed to its larger size.

Apple inaugurated its Mumbai store, AppleBKC, on April 18 last year, followed by the opening of Apple Saket in New Delhi two days later. Tim Cook, Apple's CEO, attended the store openings.

According to the report, Apple is in advanced discussions to open one store each in Pune and Bengaluru, along with another outlet in the National Capital Region in Noida, all in prominent shopping malls. 

The report, citing sources, said that the company wanted to complete a full year of operations at its initial two India stores before moving forward with its expansion plans.

The average selling prices at these Apple stores are comparable to the company's average in India. “Apple won’t be satisfied with just two stores in a country as large as India. The question is not if, but when they will expand," said a third industry executive familiar with Apple's strategy. 

Interestingly, the report also indicates that the American tech giant is also likely to launch its Apple Vision Pro headset in India soon. However, a prerequisite for launching this product is having company-owned stores in place. 

The tech giant has been increasing its focus on India, the world's second-largest smartphone market, amidst geopolitical challenges and slowing sales in key markets like the US and China. In addition to ramping up local manufacturing for domestic use and exports, the Apple stores have been central to Apple's growth strategy in India, where the company has consistently recorded double-digit revenue growth each quarter since the stores opened.

Sources close to the company said the retail stores provide customers with an opportunity to experience Apple products and offer a consistent level of service found in other global markets. Given that these are Apple's first stores in India, foot traffic has been consistently high, particularly on weekends.

The stores also play a role in brand building, with "Today at Apple" sessions where experts conduct tutorials on maximizing the use of Apple products. An employee at the Mumbai Apple store remarked that she had already built relationships with regular customers. Another employee mentioned that the store's location has contributed to increasing foot traffic month by month.

An industry insider noted that foot traffic is highest during new product launches, festivals, and weekends. Customers often visit the Apple store to experience the latest products, then purchase them from nearby resellers where they find discounts and financing options. Despite this, Apple's retail stores continue to draw high foot traffic and serve as crucial touchpoints for the brand.

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Published: 22 Apr 2024, 05:45 PM IST
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