According to a report from the The Economic Times, Apple is planning to set up a distribution center in India. The move comes as Apple is working to establish a retail presence in the country and has faced challenges due to local regulations.
This evening’s report claims that Apple will work with its global logistics partner, DB Schenker, who will set up and operate the center. The goal of the distribution center in India is to ensure that Apple’s products are “rarely sold out at the retail level” and to set “common pricing for offline and online sales,” thus giving Apple greater control of the supply chain in the country.
The iPhone market has been notoriously complex, with Apple not having a strong hold on pricing and availability alike:
Currently, iPhones, iPads and Mac computers are brought into India through Chennai, Bengaluru, Mumbai, Chandigarh, New Delhi and Hyderabad – where value-added tax rates vary – and transferred to distributors from the airport itself.
One source cited in the report explained that the distribution center will allow Apple to “ease operations and streamline its logistics and supply chains.”
Additionally, Apple hopes that this distribution center will allow it to put a stronger hold on the enterprise Mac market by pushing more tailored options to enterprise customers.
“The distribution centre will allow Apple to stock its products adequately, will ease operations and streamline its logistics and supply chains. It will also help in maintaining uniform price for its products, which will become much easier under the Goods and Services Tax regime,” said one of the executives.
This distribution marks the first of its kind in India for Apple and will be located at Bhiwandi near Mumbai. DB Schenker is one of Europe’s largest logistics company, though it wouldn’t comment on this partnership with Apple.
Apple and Tim Cook have bet big on India to help combat slowing iPhone growth around the world. The company has been working tirelessly to gain regulatory approval and set up a retail presence in the country and is nearly success if recent reports are to be believed. Apple has looked into manufacturing the iPhone in India and also plans to open an R&D center in the country.
It’s unclear when Apple will open the distribution center in India.