How Apple plans to take iPhone to smaller cities in India

In an attempt to expand its reach in smaller cities and towns in India, Apple has decided to forge a local partnership with Reliance industries. Apple aims to harness Reliance’s telecom and retailing networks to take the American phone brand to 900 cities and towns, according to Economic Times.

With this exercise, Reliance will also try to establish its position as the largest seller of iPhones in the country.

Besides, Apple aims to target smaller cities and towns to sell iPhones where Reliance has a ready infrastructure through its retail and telecom businesses. The move will increase the presence of Apple and double it to over 4,000 outlets. Reliance, too, wants to sell phones from Rs 999 to $999.

Hence, it’s a win-win relationship for both," a person aware of the plans told ET.

Apple currently sells iPhones through five distributors in India – Brightstar, HCL Infosystems, Ingram Micro, Rashi Peripherals, and Redington. Reliance has been an old partner of Apple since it was one of the earliest franchisees for the Apple exclusive stores.

Last week, Akash Ambani, son of Reliance Industries Chairman Mukesh Ambani, and Cook through videoconferencing launched the Reliance Jio bundling offer on the new iPhone 8 and 8Plus last week.

As part of this, consumers will get assured buyback of 70 per cent on their iPhones 8 and 8Plus models and additional data services.

To avail the buyback offer, customers buying these new iPhones from Reliance Digital – or from e-commerce major Amazon – will have to get themselves enrolled for an iPhone upgrade after 12 months, then Reliance Digital or Amazon will return 70% of the cost and adjust the price in the new iPhone when it comes in 2018, effectively giving consumers a discount.

Both companies will now roll out similar plans for the upcoming super-premium iPhone X that will be launched in November.