Apple eyeing expansion into Tier-II and Tier-III Indian cities

Apple eyeing expansion into Tier-II and Tier-III Indian cities

Looks like Apple may finally be ready to take the Indian market seriously. According to a new report by the Economic Times, Apple is expanding its marketing and sales reach to Tier-II and Tier-III Indian cities in a bid to grab more customers. While the company is yet to formally launch its new iPhone handsets here, it looks like India does figure in Apple's plans after all. Apple India’s top executives reportedly met with the CEOs and senior executives in India. The meetings resulted in “plans [being made] to enter the top 50 Tier-II and III markets in India by selling its phones, tablets and portable music players at their outlets in an exclusive corner or a shop-in-shop.”Before looking at the Tier-II cities, though, it is necessary to note that Apple does not have a single Apple Store in India. The decision to include smaller towns in the company’s strategy instead of launching an exclusive store suggests that Apple is once again betting on the reseller netwrok to continue pushing sales in Tier-II cities.

Apple said to be expanding into India's smaller cities

For example, Mumbai has at least 10 premium Apple resellers, while the relatively smaller city of Pune has only four. A quick glance at the Apple India website revealed that smaller cities like Surat and Lucknow only have one re-seller each to their name. These are the cities where Apple is looking to expand. A lot has changed for the iPhone maker after the company decided to tie up with specialised distribution companies in the country. Last year, Apple decided to partner up with Redington and Ingram Micro. The decision basically ensured that the company’s product line-up will be available in stores beyond major retail chains like Croma and Reliance. While the idea of having Apple-approved reseller stores in smaller cities is appealing, there is still the matter of price.

Apple, the world’s most valuable brand, is hardly likely to reduce its prices just for newer Tier-II markets. That might not go down too well with budget-friendly customers, who make up the majority of the audience in these smaller markets. Apple is very likely going to use the same strategy for Tier-II cities as it has done for the metros so far. So expect more buy-backs and EMI schemes.

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