India is one of Apple’s fastest growing markets: Tim Cook

Soon after announcing the third quarter revenue – Apple still makes billions but iPhone sales slump – Tim Cook spoke about how the company sees huge potential in India. After the announcement, he said, “We’re looking forward to opening retail stores in India down the road, and we see huge potential for that vibrant country.”

After norms relaxed (30 percent) in November 2015, Apple had applied for exemption on the ground that it was introducing “state-of-the-art” and “cutting-edge technology” to the country. However, the DIPP found that there was “nothing to show that Apple’s technology is cutting edge” revealing that Apple may have once again hit a roadblock when it comes to opening its Apple Stores in India. Interestingly, the norms have now been relaxed for products said to come with ‘state-of-the-art’ and ‘cutting edge’ technology. The new norm will allow single-brand retail trading and exemption from local sourcing norms for ‘state-of-the-art’ and ‘cutting edge’ technology with a waiver for three years, and the option to extend it for five years. This means Apple Stores could be set up just in a matter of time.

He also mentioned his India and China visits during the quarter and how he envisions growth in these regions. Talking about India, he said that it is one of Apple’s fastest growing markets today. “In the first three quarters of this fiscal year, our iPhone sales in India were up 51% year on year. We just announced a first of its kind design and development accelerator to support Indian developers creating innovative applications for iOS, and we opened a new office to accelerate maps development,” he said.

A recent report highlighted that Apple has leased about 40,000 sq ft in Yelahanka, North Bengaluru. The office space is expected to house approximately 300 people spread over two floors with the opening slated for next year. The new office will be located in RMZ Galleria, a place stated to be the new business district for Bengaluru.

Slowly yet steadily, India is becoming an important market for Apple. Tim Cook’s India visit, plethora of announcements and mentions during the past couple of earnings calls will vouch for it. Tim Cook, during the last earnings call, stated how India is where China was 7-8 years ago. Talking about the current scenario, he explained how LTE rollout has been one of the factors that has been holding Apple back as the potential and how the power of its mighty devices cannot be unleashed on 2G. But with good networks coming in things could change.

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