Apple ready to do business in India

Mumbai: Apple Inc has applied to set up its own stores in India, one of the world’s fastest growing smartphone markets, as the iPhone-maker looks to tap new opportunities amid worries of slowing growth in its main markets.

Apple sells its iPhones, iPads and Macs in India through third party resellers, and industry analysts estimate that the Cupertino, California-based company has less than a two per cent share in India’s smartphone market, dominated by cheaper brands.

The company has filed an application with India’s department of industrial policy and promotion to open its own stores, commerce secretary Amitabh Kant. Apple also confirmed the application filing, but declined to give details.

Its expansion plans in India come at a time when concerns about slowing growth in the United States and China, the world’s most important market for smartphones, have weighed on the company’s stock in the last few months.

For years, India has been a low priority market for Apple as spending power is weaker than in China. But Apple is now looking to boost its market share in India’s rapidly growing market.

Its plans for India have been held back due to restrictions on foreign investment in the retail industry, which require single brand overseas retailers to buy close to a third of the goods sold at their stores from local producers.

Apple representatives held talks with Indian government officials about a relaxation of the 30 per cent local-sourcing norms before filing the application, said a source familiar with the company’s plans.

Mr Kant said his department would examine Apple’s application in view of the changes made for local sourcing.