Apple is expected to get permission to set up retail shops in India which will strengthen its share in the world’s fastest growing smartphone market. Apple is already doing business in India either online or through third parties but its share has been too small at just 2 percent which has pushed the company to apply for its retail stores.
It was reported by Bloomberg citing a person with knowledge of the matter. According to the report Apple is expected to win approval from the government of India to launch its stores. Apple’s request for approval was surrounded by uncertainty following Indian government policy for foreign business. However, Apple has found a flexible corner in the requirements that enabled it opening stores in India.
The foreign businesses who wish to sell their brand in India are required to buy components from local manufacturers. This was the key obstacle for Apple which buys device components from Chinese vendors. Though Apple would not be ready to adjust its suppliers but it has still got the chances to set up stores in India due to its special status. According to the Bloomberg’s informed source Apple has been classified as a provider of cutting-edge technology, which are excluded certain restrains.
The indirect presence of Apple in the Indian market accounts for its 2 percent market share. The presence of Apple retail stores will probably take the market share up. But besides opening retail stores Apple has also planned for its expansion in Indian market. The Indian market have a wide scope for smartphones in all sections of the market.
According to the reports Apple has planned to sale out its older iPhone models on a heavily discounted price. Also there are considerations to bring in new users into the Apple ecosystem which will play the key role in increasing Apple’s 2 percent share in Indian market.