Apple will reportedly pay a record-breaking rent of over ₹42 lakh per month for the space.
Apple, the world’s most valuable company, is making its first foray into the Indian retail market with the opening of a new store in Mumbai’s prestigious Reliance-owned mall.
The move comes as Apple seeks to expand its presence in India, which has traditionally been a challenging market for the tech giant.
The new store is located in the Bandra Kurla Complex (BKC) and is expected to be a significant step towards building Apple’s brand in India. The company’s CEO, Tim Cook, is reportedly set to visit India to preside over the store’s opening.
The new store is part of an 11-year deal with Reliance Jio World Drive mall and covers around 20,800 square feet of space.
Apple is reportedly paying a record-breaking rent of over ₹42 lakh per month, with a 2 percent revenue share contribution for the first three years.
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The revenue share contribution will then increase by 15 percent every three years, eventually reaching 2.5 percent.
The decision to locate the store in a Reliance-owned mall is notable given the deepening ties between the two companies.
Apple is betting on India as a growth market and manufacturing base.
This move is seen as a significant step towards diversifying its assembly operations beyond China amid strained Beijing-Washington relations.
India’s strict rules forbid global brands from opening their own outlets unless they source a significant portion of the goods from within the country.
Apple’s decision to open a store in India shows its commitment to the market and its willingness to navigate the country’s complex regulatory environment.
With sales of iPhones reaching an all-time high and annual iPhone exports from India reaching billions of dollars.
The country is becoming an increasingly important market for Apple.
Apple भारत में पहले रिटेल स्टोर के लिए अंबानी को 42 लाख (investonomic.co.in)
The company’s decision to invest in India is a testament to the country’s potential as a growth market and its importance as a manufacturing hub.
Overall, Apple’s entry into the Indian retail market is a significant step towards building its brand in the country and expanding its presence in one of the world’s fastest-growing economies.
The move also highlights the company’s commitment to diversifying its assembly operations and its willingness to navigate complex regulatory environments.
