India’s first Apple retail store delayed due to COVID-19

The first physical Apple Store in India, set to launch later this year in Mumbai, has been reportedly delayed due to the pandemic. In September 2020, Apple opened its first online store in India, so a physical location is the logical next step. Unfortunately, after much anticipation, the store’s opening has been delayed due to an increase in the number of COVID-19 cases across the country, according to a new report from The Indian Express.

Apple has been manufacturing in India for some time now, and it does have a dedicated fan base there. The online store launch in September made it easier for customers to buy directly from Apple rather than from authorized resellers. Apple opening an official retail store will help products reach more people and expand ownership of Apple products in India. The company has seen massive market growth in India last year, with the numbers almost doubled, compared to a year ago. Following the announcement of the company’s 2020 result in an earnings call in January, Tim Cook said Apple had sold over 1 million devices in the country for the first time.

If you take India for example, we doubled our business last quarter compared to a year ago- Tim Cook told analysts.

For some time, India has required large companies to manufacture at least 30% of their products in India to sell them online or at retail stores. This has been a problem for Apple and other tech companies because they do not manufacture enough products in India. Recently though, the Indian government relaxed this rule, thereby allowing Apple to sell more products in India. This is why Apple was able to open its online store back in September 2020, and it's also why the offline retail store is coming soon. As a result of the launch of Apple’s online store in India, the company’s market growth in the country rose to new heights, specifically due to more online product demands from the customer because of the pandemic. This noteworthy reaction that Apple’s online store has attracted was emphasized by Apple’s CEO, Tim Cook. In the company’s Q1 2021 earnings call, Cook stated that he looks forward to the launch of the physical retail store in the country following this positive reaction from the customers.

In Apple’s recent Q3 2021 earnings call, Cook attributed the new revenue record of $81.4 billion, which was up 36% from last year, to double-digit growth in many markets, especially emerging ones such as India. However, Cook has also stated previously that Apple’s absolute level of business in India is “still quite low relative to the size of the opportunity.” Yet, according to a recent CyberMedia Research, Apple bagged 140% growth in the June quarter accomplished majorly by iPhone 11, which accounted for 60% of the shipments, followed by the low-cost iPhone SE and the new iPhone 12 lineup. This first Indian Apple Store will likely open next year, and it will most probably be followed by more in the future. For the record, iPad production looks all good to begin in India as the company has now been benefited from the advantage of tax breaks that reward companies for increasing the number of products they make in the country.

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