Apple is about to close a deal with Shiv Nadar’s HCL Infosystems to build a distribution partnership that will increase its retail presence in India. HCL Infosystems announced yesterday that they are in talks with the US-based high-tech company to distribute its products in the region. The two companies are expected to sign the agreement within this week and afterward the business may be launched next month.
HCL has distributed mobile phones for various firms including Lenovo, Nokia, Motorola, plus other personal gadgets from Braun, and Panasonic. It has over 13,000 retail outlets spread out in major towns and small market centers.
According to industry analysts, the agreement will help Apple’s iPhones and iPads to reach people living in small townships, which Apple is planning to focus on as their next business growth driver. About 55% of Apple’s iPhones found in India were bought online. HCL stated that they signed up a nondisclosure deal with Apple in India in 2016 to express their interest in distributing Apple products in the country.
Apple is also planning to concentrate on the offline trade through HCL which will enable the company to reach smaller markets that HCL largely occupies. But Apple is unlikely going to allow its distributor to have any influence on product pricing. Apple is currently distributing its products through four other companies in India. These include; the Ingram Micro, Rashi Peripherals, Redington, and Beetel Teletech which is owned by US based distributor Brightstar.
The tie up is expected to increase the presence of iPhones and iPads in smaller towns thus enabling Apple to enlarge the reach of its products in various smaller markets. Sources from HCL reveal that the company constantly evaluates available opportunities as a way to enhance the value of its stakeholders and moving from single brand to multiple brand distribution is one of their key strategies.
Apple is second after Samsung in customer-base in India with a 20% market share. In 2016, the company shipped about 55% of over 2.6 million mobile phones to India. Apple is currently eyeing India following reported low sales volumes in US and China and also it’s planning to set up a manufacturing plant in India.
