Apple likely to launch online iPhone store in India by Diwali

With an aim to expand its market in India, Apple is likely to launch an online iPhone store in the country around Diwali. Initially, the online store will sell iPhone SE which will be manufactured in India. 

The tech giant is hopeful that local manufacturers can have a direct online presence in the country. The product portfolio will be expanded later as it grows the local production to other models.  

"Apple will initially start its online store by selling iPhone SE which will be manufactured in India and will be in line with government policies. The company is hopeful to start the online store in India around Diwali," The Economic Times quoted an Apple executive as saying. 

The online stores may also sell some accessories which will be sourced from India. 

At present, around 50-55 per cent of the iPhones sold in India is generated from online sales as compared to the smartphone industry average of 30 per cent. Apple will not compete on price with online marketplaces for the products it sells through its own online store.

Apple's online store plans do not require foreign direct investment (FDI) approval in retail since the government allows companies to directly sell online models manufactured locally, senior industry officials told ET.

The tech giant sees India as the next China for its phones and it looks to replicate its China success here. Although, Apple’s unaffordable price tags remain a huge deterrent for India’s price-sensitive consumers.

The company plans to start assembling of iPhones in Bengaluru by June.

In December, Apple announced plans to make iPhones for the Indian market in Bengaluru in association with Wistron, a Taiwanese OEM manufacturer for Apple and will start production by April 2017.

According to reports published in Business Standard, Foxconn, the biggest contract manufacturer for Apple has also been roped in to set up a manufacturing unit in India. As per sources, Foxconn is adopting a model of setting up smartphone assembly lines in multiple cities across India, with a second iPhone facility coming up in Gurgaon. An announcement is likely to be made during the Vibrant Gujarat Global Summit 2017 to be held on January 10 at Gandhinagar. 

Apple announced that it would open its brand-owned stores, besides a 4,000-people facility in Hyderabad for its mapping unit.