Apple plans big India push with 500 stores, distributors' share rise

Shares of Redington India on Friday jumped 12.2 per cent to an all-time high of Rs 147.75 intra-day before settling over 5 per cent higher on reports of US-based electronics giant Apple Inc planning to expand its presence in India.

Apple currently operates in India through two key distributors - Redington and Ingram - who then supply the products to regional distributors, multi-product trade channels, Apple Premium Re-seller stores and Apple Authorized Re-seller outlets.

According to a report in The Economic Times, Cupertino-based Apple, whose iPhones and iPads are among the top bought gadgets in India, is planning to open 500 'iOS' stores in the country, reaching out to smaller towns and cities.

Redington, one of the biggest partners for Apple in India and accounting for nearly 70 per cent of its sales, is likely to spearhead the new model for the iPhone maker.

Apple has "tentatively approved" the expansion proposal and will give a final go-ahead very soon, defining all the parameters and phases of expansion, the report added. "These new stores will be smaller in size and could range from 300-600 sq ft against over 2,000 sq ft size of existing stores in bigger cities," it said.

Reacting to the reports, shares of Redington closed 5.47 per cent higher at Rs 137.95 on the Bombay Stock Exchange. The stock is up 93.5 per cent year-to-date, compared to 35.8 per cent of Nifty.

(With inputs from agencies)