Apple Inc. is set to enhance its presence in India by inaugurating a third retail store at Bengaluru’s Phoenix Mall of Asia. This development underscores Apple’s commitment to the Indian market, especially amid escalating trade tensions between the United States and China.
Details of the New Store
The upcoming store will occupy approximately 8,000 square feet on the first floor of the Phoenix Mall of Asia in Hebbal, Bengaluru. This size is comparable to Apple’s Delhi outlet but smaller than its flagship Mumbai store, which spans over 20,800 square feet. The lease agreement is set for ten years and includes a revenue-sharing component: Apple will pay 2% of the store’s revenue for the first three years, increasing to 2.5% thereafter.
Apple’s Retail Strategy in India
This expansion aligns with Apple’s broader strategy in India. CEO Tim Cook recently confirmed plans to open four new retail stores in the country, including locations in Pune, Mumbai, Delhi-NCR, and Bengaluru. The company’s first two Indian stores, in Mumbai and Delhi, opened in 2023.
Significance of the Expansion
Apple’s retail expansion in India comes at a time of escalating trade tensions between the U.S. and China. As Tim Cook told analysts during Apple’s Q2 2025 financial call:
> For the June quarter, we do expect the majority of iPhones sold in the U.S. will have India as their country of origin, and Vietnam to be the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products also sold in the U.S. China would continue to be the country of origin for the vast majority of total product sales outside the U.S.
In response, President Trump has threatened to impose a 25% tariff on iPhones not manufactured in the U.S., aiming to push Apple toward domestic production.
Apple’s Manufacturing Shift to India
Apple’s increased focus on India is not limited to retail expansion. The company has been steadily shifting its manufacturing base to India. In 2017, Apple began producing lower-end iPhone models in India. By 2022, the company started manufacturing its latest iPhone 14 models in the country. Analysts predict that by 2025, a quarter of all iPhones the company makes could be produced in India.
Market Performance in India
Apple’s efforts in India have yielded positive results. Between July and September 2023, the company shipped more than 2.5 million iPhone units in India, marking a 34% year-on-year increase. The iPhone 14 accounted for more than a third of iPhone shipments in India in 2023.
Challenges and Opportunities
Despite these successes, Apple faces challenges in the Indian market. The high prices of its products limit its market share to 6%, compared to 57% in the U.S. and 24% in China. However, the premium smartphone market in India is growing, and Apple’s brand is gaining traction among Indian consumers.
Conclusion
Apple’s decision to open a third retail store in Bengaluru reflects its strategic commitment to the Indian market. By expanding its retail and manufacturing presence in India, Apple aims to tap into the country’s growing consumer base and reduce its dependence on China. This move also positions Apple to navigate the complexities of global trade tensions while capitalizing on new growth opportunities.
