Apple to expand franchisee store network in India

Buoyed by the success of the iPhone in India, Apple Inc has decided to scale up its presence in the country and plans to triple its exclusive stores to around 200 by 2015, said three of its dedicated franchisees. These franchisees, who did not wish to be named, told ET that they have been asked to scale up operations in the country as the Cupertino-based company plans to grow aggressively in the country. In addition to increasing the number of Apple exclusive stores, called Apple Premium Resellers, that are owned and managed by 17 franchisees, the company also plans to expand its presence in multi-brand stores, they said.

India is a huge potential market for Apple, but they haven’t been able to roll out their trademark stores because they would be required to source 30% of their goods sold there from within the country. This isn’t feasible for two reasons:

  • Apple’s massive supply chain relies on suppliers from around the world. Parts are made in China, Japan, Taiwan, and even the United States. Using Indian suppliers would disrupt the process Apple has been perfecting for years.

  • The suppliers simply aren’t there in India to make the switch if they wanted to. They’d have to build factories for the companies or run them themselves.

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