ervice providers and official resellers. However, this changed recently when CEO Tim Cook visited the country to inaugurate its stores amid grand fanfare. Both the stores are situated in upscale neighbourhoods. After formally filing a request for the retail store in 2016, the global tech giant wanted to open the facility in 2020 but postponed the plans due to Covid-19 disruption. Apple’s flagship stores in Mumbai and New Delhi reported record profits in May, making Apple the largest electronics retailer in India in terms of revenue. According to local reports, each store has generated approximately US$3 million in sales, despite Apple’s premium pricing for its devices. Furthermore, Apple is reportedly planning to open three additional stores in the coming years to strengthen its offline presence in India. India’s mobile retail In recent years, the mobile phone retail space in India has been shrinking due to the rise of the digital marketplace, at the same time retailers have struggled to handle increasing real estate costs, labour expenses, and warehouse management. Online sales of smartphones surpassed offline sales during the pandemic, however, and the trend has continued since then. Even in semi-rural and rural markets, consumers increasingly prefer online purchases, driven by convenience, discounts, and a wide variety offered by e-commerce players. Despite this, Apple is swimming against the tide, determined to make its mark in India. As the world’s second-largest smartphone market, India is crucial for Apple’s growth. While the company has been shifting its production from China to India due to geopolitical tensions, its retail market in the world’s most populous country has not been as strong. India accounts for 5 per cent of Apple’s global iPhone production but is rapidly increasing. During the store inauguration, Cook expressed his enthusiasm, stating, “India is at a tipping point, and it feels great to be here. You can feel the vibrancy and dynamism. The feeling that anything is possible.” Manufacturing vs retail According to official figures, mobile phone exports from India reached US$11 billion in the fiscal year ending March 2023, with over 40 per cent of that coming from iPhones, and, with the support of industry-friendly policies introduced by the federal government, Apple is poised to solidify its foothold. However, despite these promising factors, Apple currently holds less than 4 per cent of the smartphone market in India. This can be attributed to India’s price-sensitive market, as the average selling price of an iPhone is close to $800, more than double that of its immediate competitors and significantly higher than other brands. While the Indian middle class continues to expand (nearly a third of the population falls under the category of middle class), there have been no indications from Apple whatsoever on whether it will offer its premium products to Indian consumers at reduced prices. In contrast, Apple’s rival Samsung, which entered the Indian market decades before Apple, holds over 15 per cent market share, while Chinese brands like Xiaomi, Vivo, and Realme dominate the Indian smartphone market. Nevertheless, Apple enjoys an unrivaled status symbol among consumers, which industry experts believe will play a significant role in its retail strategy. They compare the current scenario to Apple’s early days in China several years ago. In addition to its iconic smart devices, Apple is also reportedly exploring diving into different sectors like credit cards and e-payment to expand its influence. Shifting consumer needs, changing lifestyles, and increasing disposable income has fueled smartphone growth in India, with over 600 million smartphone users in a country of 1.4 billion people. In the premium smartphone segment, where iPhones are positioned, the tactile experience before purchase plays a crucial role, potentially tilting the offline market in Apple’s favour. The rollout of 5G technology and the rising demand for 5G-enabled devices will further benefit Apple. Before the inauguration of its retail stores in April, Apple experienced a 50 per cent year-on-year growth in the first quarter of this year. If the initial weeks are any indication, Apple’s entry into the Indian market is bound to reshape the mobile retail space. Offline phone retail in India has experienced a dull period, compounded by the pandemic, but began recovering in early 2022. The arrival of Apple has undoubtedly brightened the prospects for the succeeding years.