Although Apple has been able to sell iPhones and iPads in India for many years now it hasn’t been able to do it directly. The iPhones and the iPads are brought into India through multiple cities like New Delhi, Chennai, Bangaluru and Chandigarh, and since all these cities have different value added tax rates, the end-user price of these iPhones and iPads varies from state to state. Logistics is also a problem. Besides, Apple’s been trying to negotiate with the Indian government in order to be able to sell its products directly in India. Right now, if you want to follow proper channels, you can purchase genuine iPhones and iPads from its official partners Flipkart and Infibeam. The news of Apple opening official retail stores in India has been doing the rounds for a long time now. The company has also been trying to sell refurbished iPhones in India.
In the recent development, Apple is working with its global logistics partner DB Schenker that will set up and operate the official distribution channel. The distribution channel will ensure that the Apple products are not sold outside of the common pricing limits for off-line and online sales. This way Apple will be able to control the supply chain in the country rather than depending on third party sellers.
According to a news report published in The Economic Times,
“The distribution centre will allow Apple to stock its products adequately, will ease operations and streamline its logistics and supply chains. It will also help in maintaining uniform price for its products, which will become much easier under the Goods and Services Tax regime,” said one of the executives.
Surprisingly, despite not being able to directly sell its iPhones and iPads in India, Apple was India’s second-largest smartphone maker by revenue in 2015-16, directly competing with the local competitor Micromax Informatics. During this period its sales increased 54% to Rs. 9997 crore.