The first day’s sales at Apple BKC exceeded 10 crore. This was between two and three crores of rupees more than some of the biggest local electronics retailers report each month.
Apple has made a new achievement in the country by opening the top electronics retailer in terms of sales in India.
The iPhone maker’s first two own stores in India have generated monthly sales of more than 22–25 crore each, which is more than double what may be the biggest income for an electronics store in the nation outside of Diwali.
The New Delhi location opened two days after the Mumbai location on April 18. Tim Cook, the CEO of Apple, attended both inaugurations. According to management, the Jio World Drive at Bandra Kurla Complex shop in Mumbai is now one of the top 10 Apple-owned locations. Over 10 crore were spent on Apple BKC’s first day, which is 2–3 crore more than some of the biggest local electronics retailers report in a month.
Such massive stores may, at best, charge for Rs 3-5 crore on a Diwali day.
However, the second store in the Select Citywalk mall in Saket, New Delhi, has a greater per-square-foot revenue. Less than half the 22,000 square feet of Apple BKC, Apple Saket is less than 10,000 square feet. But revenues are about the same. Each business had more than 6,000 customers on opening day.
Apple India chose not to respond.
One of the executives mentioned above said that the two company-owned Apple Stores in India were “setting new benchmarks in terms of absolute and per-square feet revenue.” This is because Apple items have a significantly higher average selling price (ASP), which increases income, and because foot traffic is still strong, with both locations staying busy on any given day. Sales have significantly beyond Apple’s own internal projections.
Sales price
IDC India, a market research firm, estimates that the iPhone’s ASP in India in 2022 will be $890 for e-commerce and $935-990 for traditional channels. According to IDC India associate vice-president Navkendar Singh, with the introduction of the two Apple-owned stores in India, the total average selling price (ASP) of the iPhone would probably surpass $950 and will be beyond $1,000 for offline sales. These ASP values do not include the 18% goods and services tax.
The firm opened its own stores in the two biggest markets for Apple, New Delhi and Mumbai, which account for around a quarter of the company’s iPhone sales, Singh said. “Apple stores won’t offer too many deals and discounts. As a result, we anticipate a slight increase in the total iPhone ASP in 2023.
The regional headquarters in London directly manages the Apple retail store operation in India; the India sales staff is not actively involved. Sales, however, would be recorded under Apple India Pvt Ltd as this organization is in charge of signing the rental contracts with the two malls. According to officials, Apple operates the Saket shop on a fixed rent basis whereas the BKC store has a revenue share component of little under 2%.
It would be fascinating to watch how long the two stores can maintain their dominance given that Indian consumers are price-sensitive, according to the head of a major multi-brand electronics retail chain. “Of course, during an iPhone launch, these stores may again score high if Apple gives disproportionately higher inventory in these outlets, as there are always stock issues during the first month of a launch,” he said.
