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Apple Expands Retail Presence in India wiht New Bengaluru Store
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Apple is deepening its commitment to the Indian market by opening a third retail store in Bengaluru, even as trade tensions simmer between the U.S. and China.
Apple is set to broaden its retail footprint in India with the opening of its third store at Bengaluru’s Phoenix Mall of Asia,according to reports. This move highlights the company’s dedication to the Indian market, occurring at a time when the growing partnership is causing friction with president Trump.
The new store will occupy approximately 8,000 square feet on the first floor of the Phoenix Mall of Asia in hebbal, Bengaluru. This size is similar to Apple’s Delhi location,but smaller than its Mumbai flagship store,which covers over 20,800 square feet.
The 10-year lease includes a revenue-sharing agreement, common in high-traffic malls. Apple will pay 2% of the store’s revenue for the first three years,increasing to 2.5% afterward.
This expansion is in line with apple’s broader strategy in India. CEO Tim Cook recently confirmed plans to launch four new retail stores in the country, including locations in Pune, Mumbai, Delhi-NCR, and Bengaluru. Apple’s first two Indian stores, in Mumbai and Delhi, opened in 2023.
Apple’s Increasing Reliance on India
Apple’s retail expansion in India is happening amidst rising trade tensions between the U.S. and China.
“For the June quarter, we do expect the majority of iPhones sold in the U.S. will have India as their country of origin…”
During Apple’s Q2 2025 financial call, Tim Cook told analysts:
“For the June quarter, we do expect the majority of iPhones sold in the U.S. will have India as their country of origin, and Vietnam to be the country of origin for almost all iPad, Mac, Apple Watch, and AirPods products also sold in the U.S. china would continue to be the country of origin for the vast majority of total product sales outside the U.S.”
In response, President Trump has threatened to impose a 25% tariff on iPhones not manufactured in the U.S., aiming to encourage Apple to shift production back home.
Whether this threat will change Apple’s plans in India is uncertain, but the new lease for a third store, with more planned, suggests the company is committed to its current course.
Frequently Asked Questions
- Why is Apple expanding its retail presence in India?
- Apple is expanding in India to tap into the growing consumer market and diversify its manufacturing and retail operations, influenced by geopolitical factors and economic incentives.
- What are the key terms of the lease for the new bengaluru store?
- The lease is for 10 years and includes a revenue-sharing agreement where Apple will pay 2% of the store’s revenue for the first three years, increasing to 2.5% thereafter.
- How does the U.S.-China trade tension affect Apple’s strategy in India?
- Amidst rising trade tensions, Apple’s expansion in India helps diversify its manufacturing base and reduce reliance on China, though potential tariffs could impact future decisions.
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