Apple plans to differentiate its online store in India from marketplaces

Apple’s iconic offline stores in India is still far away, with the company first planning to set up its own online store by this year piggy-riding on the fact that local manufacturers can have a direct online presence in the country.

Apple will initially start its online store by selling iPhone SE which will be manufactured in India and the product portfolio will be expanded as it grows the local production to other models.

Two senior industry officials said Apple’s online store plans does not require foreign direct investment (FDI) approval in retail since the government allows companies to directly sell online models manufactured locally. The company plans to start assembling of iPhones in Bengaluru by June.

One of the executive said, "Apple will initially start its online store by selling iPhone SE which will be manufactured in India and will be in line with government policies. The company is hopeful to start the online store in India around Diwali."

Instead, Apple plans to differentiate its online store in India from marketplaces like Amazon and Flipkart by offering value-added services such as laser engraving to personalise the handset, sell models or variants which are exclusive such as a dedicated model, colour option or storage space, the executive said.

The brick-and-mortar Apple Stores in India will be limited in number and the company is looking at 4-5 such flagship outlets over the next 5-10 years. This is due to the fact that such stores require huge space to suit its architectural design and comes up over iconic locations which are far and few. The offline Apple Stores will initially come up in the metroes.

Apple’s local assembling will start with the iPhoneSE through Taiwanese contract manufacturer Wistron’s facility in Bengaluru. The company has plans to scale it up to few other iPhone models and is also open to start with its other global partner Foxconn which is already operating couple of plants in the country.

There are plans to set up a full-fledged manufacturing operation in the country including its component manufacturer base and has sought tax exemptions from the government for that. The government is yet to give its approvals on the concessions sought.