Feeds

Apple India to put mini-shops in suburbs to flog entry-level kit

Disties to drive network of small stores – local report

Business security measures using SSL

Apple’s ramping up its presence in India with the launch of a range of small brick-and-mortar stores selling mainly entry-level iPhones and fondleslabs, according to a local report.

The shops will be set up by disties Redington and Ingram Micro, as well as other partners, in the neighbourhoods of major and tier two cities, according to the Economic Times.

The 400ft2 to 600ft2 shops will sell iPhones, iPads, Macs and iPods with the focus on regions with high smartmobe penetration, large student populations and where locals have relatively high disposable incomes, a senior exec at an Apple partner told the paper.

"Apple wants to focus more on its entry-level models in these stores such as iPhone 4, iPhone 4s, iPad mini and iPad 2, which are essentially in the sub-Rs.30,000 [£300] segment and also its largest-selling products in India," the executive added.

"The company feels these products are also attractively priced over competitors such as Samsung and Sony, and hence, being closer to the consumer will help to increase the conversion rate.”

The move can be seen as a response to Samsung’s success in the Indian market with its Smartphone Cafes.

First launched back in 2011, the dedicated retail outlets now number over 1,000 on the sub-continent and have helped the Korean giant to first place in the Indian smartphone market with a share of 38 per cent in Q4 2013, according to IDC.

High margin Apple’s strategy towards India has changed noticeably over recent months, with Cupertino now appearing to focus on making its handsets more affordable to the locals, in a bid to grab greater market share.

Reports last month claimed the US giant had restarted production of its old iPhone 4 handset, which will retail cheaper than the iPhone 5C at Rs.20,000 ($327, £200).

There are also reports it has introduced buyback and cashback schemes for the 8GB iPhone 4 which aim to reduce that price to around Rs.15,000 (less than $250, £148).

However, Apple still faces an uphill task in India.

It’s not even listed in the top five manufacturers, which are Samsung, Micromax (16 per cent), Karbonn (10 per cent), Sony (5 per cent) and Lava (4.7 per cent), according to IDC. It’s thought Apple's share is down around one to two per cent.

In addition, an electronics retailer told ET that, after discounts, margins on iPhones and iPads (2-5 per cent) were worse than those for Samsung and other brands (7-10 per cent).

“Hence, it makes sense to continue with a multi-brand retail model where we can make more money,” an exec told the paper.

Apple isn't commenting on the report. ®

New hybrid storage solutions

More from The Register

next story
Half a BILLION in the making: Bungie's Destiny reviewed
It feels very familiar - but it's still good
Apple's big bang: iPhone 6, ANOTHER iPhone 6 Plus and WATCH OUT
Let's >sigh< see what Cupertino has been up to for the past year
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
A SCORCHIO fatboy SSD: Samsung SSD850 PRO 3D V-NAND
4Gb/s speeds on a consumer drive, anyone?
4K-ing excellent TV is on its way ... in its own sweet time, natch
For decades Hollywood actually binned its 4K files. Doh!
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Get your Indian Landfill Android One handsets - they're only SIXTY QUID
Cheap and deafening mobes for the subcontinental masses
Apple's SNEAKY plan: COPY ANDROID. Hello iPhone 6, Watch
Sizes, prices and all – but not for the wrist-o-puter
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.