Apple May Be Looking to Get a Foot in the Door of India

By Trey Thoelcke Published Oct 1, 8:26AM EDT

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The Economic Times reported today that Apple Inc. (NASDAQ: AAPL) may be evaluating opening its own stores in India. The iPhone and iPad maker currently supplies its products to Indian consumers through partnerships with local distributors. But fees paid to those partners eat into profitability.

Apple could open stores in India only if the government allows the U.S. company’s technology outsourcing operations in the South Asian nation to be included as part of the mandatory 30% local-sourcing requirement for foreign retailers, according to unnamed sources. Otherwise, Apple, which contracts much of its manufacturing to Chinese companies, would have a hard time meeting the requirement.

Due to the absence of Apple’s own stores in India, the company lags key rivals there, such as South Korea’s Samsung. Apple’s market share of handsets in India is 1.2%, according to research firm IDC, nowhere near the 51% of Samsung, the market leader. Apple has yet to officially launch the iPhone 5 in India, though the smartphone is already available there online for a premium.

Shares of Apple are up about 0.5% in premarket trading to $670.80. The 52-week range is $354.24 to $705.07.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.