Apple Inc. intends to expand its presence in India, and has applied for official government permission for the launch of its first flagship branded retail store, says a report from FT. Owing to concerns over slowing growth in China, the US firm is looking for new growth markets for its devices, and India fits in perfectly in this.
Replacing India for China?
Wall Street predicts the iPhone sales to decline, which will be the first time in the firm’s history. Apple is the world’s most valuable business by market cap, and in the recent years, it has been trying to expand its operations in India. The firm plans of expanding aggressively in the fast-growing Asian market, and this is clearly reflected from its long-awaited decision to open a retail store in India.
Apple Inc. informed that it has already filed an application to India’s department of industrial policy and promotion, and is waiting for approval to open its first solo branded retail outlet, the report said. India’s electronics market is very cost-conscious, and this makes it difficult for Apple’s relatively expensive iPhones to compete there.
China, which is the biggest market for Apple devices, has helped the firm in its rise over recent years, but its slowing now. Therefore, the firm is viewing India as the most likely replacement. Analysts believe the smartphone sales in China are levelling off just like the ones in the industrial economies.
Apple stock – suspense continues
Meanwhile, Apple Inc. shares continue to decline. With Wednesday’s decline, the stock is now close to the $92 price it fell to last August, during a market malfunction. The drop to such levels is challenging for the firm and investors, who are wondering if the stock will continue to decline and to what levels.
Apple’s stock is very much important to the entire market. The stock has seen a massive decline of 30% from its high wiping off $224bn in investors’ wealth. The value lost is higher than the market value of all stocks in the Standard & Poor’s 500 except few, says a report from USA Today.
Highlighting the importance of Apple, Howard Silverblatt of S&P Dow Jones Indices said that Apple’s profit are expected to account for 7.2% of the operating earnings reported by all the firms in the Standard & Poor’s 500.
At 9.30 am EST, Apple shares were up 0.05% at $96.83. Year to date, the stock is down almost 8% while in the last one-year, it is down over 11%. The stock has a 52-week high of $134.54 and a 52-week low of $92.