City's blueprint transformed: Impact of Apple opening a store within your location

Apple's 'Make in India' initiative has bolstered the tech giant's supply chain resilience and pricing stability. However, producing goods locally is just half the battle. Offline stores play a crucial role in creating and sustaining demand and brand premium, enabling Apple to sell its products at its desired price point.

The Apple online store has expanded the brand's reach across India, tapping into aspirational demand for its ecosystem products, not just in urban centers. But the real magic happens in the physical stores. Pune, for instance, has shown a high projection of footfall and strong sales of base-model iPhones, iPads for education, and AirPods.

The Bengaluru store is expected to outperform the Delhi store in terms of sales velocity and Average Selling Price (ASP) from day one. This is not surprising, as Samsung has a strong presence in Bengaluru, making competition fierce. Yet, the Apple Store in Hebbal and Koregaon Park is expected to become a landmark, not just selling devices, but reshaping how cities experience technology.

In Mumbai and Delhi, the ASP for iPhones sold trends approximately 8-12% higher than the national average. Customers are buying more Pro models over the non-Pro options, and for Pro users, higher storage options like 256GB or 512GB seem not like a luxury, but a necessity.

In a market where touch-and-feel remains central to electronics purchases, physical stores are critical not just for loyal ecosystem customers but also for new consumers drawn to the brand's enduring appeal. The halo effect of Apple Stores boosted sales across online and authorized resellers in NCR and MMR, helping India's Apple revenue cross $8 billion.

The physical stores are more than just shopping destinations. They double as civic rooms or brand temples. From photography workshops and music jams to iPad sketch lessons and the Genius Bar, everything is choreographed for immersion. The highly trained and professionally mannered promoters never appear to be selling. They assist you when you want, educate you, and clear your doubts to arrive at a buying decision.

Apple faces local challenges in Pune, such as converting aspirational footfall into sales and managing high volumes of 'window shoppers'. Resellers in high-traffic areas near the official stores reported a significant increase in footfall, with many consumers coming in with purchase decisions already made, effectively turning those resellers into fulfillment centers.

The physical stores deepen the demand in premium hubs, less about first-day sales and more about rewiring consumer behavior city by city. Apple is a brand which has pioneered the concept of experiential marketing, and today, brands need to build experiential connect than any other connect. Mainline retailers in these cities view Apple stores as a means for Apple to build its brand image and showcase its entire ecosystem to consumers.

Despite contributing well under one percent of national revenue directly, the indirect lift from Apple's retail stores is significant. In the top five cities where premium smartphone sales come from, Apple has started to open stores, contributing close to 21-22% of the premium smartphone sales. This strategic move shows Apple's confidence in the Indian market, as retail stores mean controlling the end-to-end experience.

Apple's retail spaces quickly become more than places to shop. iPhone shipments were about 12.5 million in 2024 and could touch roughly 15 million this year, nudging Apple into top-five territory by unit shipments despite an average selling price nearly three times the market median. It's not just from the revenue perspective; it's more from the strategy and the momentum they have in India.