The technology giant has already applied in the Department of Industrial Policy (DIPP) and the DIPP Secretary has so far confirmed the news. On a deeper thought, it is to be examined why the company has applied for an EBO at a time when the company’s India top officials bidding goodbye to their respective jobs at Apple India.
The following can explain a bit:
Increase in sales
As of now, Apple only has affiliated stores in India. In October last year, they teamed up with the retail chain Croma to open a format known as store-in-store across India. So a store after the litmus test phase can be a well deserved decision for them.
Most importantly, as per the Registrar of Companies (RoC) in November’2015, Apple had posted a 44 per cent increase in sales to Rs 6,472.89 crore (about $1 billion) from Rs 4,500.35 crore and net profit doubled to Rs 242.85 crore from Rs 119.48 crore backed by the fact that the company has widened its retail network through its Croma Store-in-store formats and also strengthen up marketing efforts, including buyback schemes, instalment programmes and discounts in India.
Apple currently generates close to $1.3 billion revenues from India. However, as per the company official, Apple currently has less than a 2 per cent share of India's burgeoning smartphone market and there is an obvious reason for them to increase its market share in the country.
The burgeoning data-seeking citizen
India also has given birth to an un-estimated hungry data seeking population who wants to consume information on the go, at their fingertips and this has driven many smartphone makers to offer smartphone at reasonable lower prices. Moreover, research says, India had about 116 million Internet-enabled smartphones at the end of 2014, a number that's expected to more than triple to 369 million by 2018, as reported by KPMG & IAMAI, number which is encouraging enough for company like Apple to start their own store in India. Also the smartphone behemoth is reportedly fighting hard against rivals such as Samsung for a greater share of the smartphone market here.
My analysis also says that, India’s present macroeconomic business environment for growth and positivity is another reason for Tim Cook’s company to start with its own exclusive store. Moreover, the recent influx of global brands to India to take part in the retail growth story is surely inspiring the brand too. However, it is now to watch how soon we will be able to experience the supreme Apple store ambiance in our country given the 30 per cent sourcing norms in the single brand FDI policy in India.