[Asia Economy Reporter Seulgina Jo] Apple plans to establish an online sales network in India, the world's second-largest smartphone market, within this year and open its first directly operated store next year. Amid slowing smartphone growth in countries including China, Apple aims to make India, with a population of 1.4 billion, a pillar of future growth.
According to major foreign media such as CNBC and CNET, Apple announced this at a shareholders' meeting held on the 26th (local time) at its headquarters in Cupertino, California. Apple CEO Tim Cook said, "We will open our first store in India next year," adding, "It took time to open the store as we worked to obtain permission to operate in India without a local partner." Recently, India has been gradually easing its previously strict regulations on foreign investment in the retail sector to attract foreign investment.
CEO Cook also added that Apple’s online store in the Indian market will be launched within this year. Until now, Apple had relied on external internet shopping malls without directly operated stores or its own online store, resulting in a market share of around 1%. He expressed confidence by calling himself a "huge believer" in the growth potential of the Indian market.
The Indian smartphone market has shown remarkable growth despite the slowdown in sales growth due to market saturation in various countries. According to Counterpoint Research, the Indian smartphone market grew by 7% last year compared to the previous year, rising to second place after China. By company, Chinese Xiaomi ranked first with a 28% market share, and Samsung Electronics ranked second with 21%.
On this day, Apple announced that it invested more than $16 billion in research and development last year. There were 14 mergers and acquisitions (M&A) and 7 retail store openings. In response to a shareholder’s question about why the popular program Friends is aired on HBO Max and not Apple TV Plus, CEO Cook said, "Who wouldn’t like Friends?" but added, "Apple TV Plus will only offer original programs (not reruns)." He did not disclose the number of Apple TV Plus subscribers.
No questions were raised about the novel coronavirus (COVID-19). Apple had previously confirmed that quarterly sales would fall short of initial forecasts due to production disruptions in China caused by COVID-19. Some shareholders expressed concerns about cooperation with Chinese government censorship and requested a report on the deletion of applications in China, but the motion was rejected. During the approximately one-hour shareholders' meeting, agendas such as the reappointment of seven directors, appointment of auditors, and executive compensation were also discussed.
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