Apple is gearing up to launch its third retail store in India, bolstered by its ongoing success in the market. The company has reportedly signed a lease for a new outlet at the much-anticipated Phoenix Mall of Asia located in Bengaluru. Currently, Apple operates two retail stores in India—one is situated at the BKC in Mumbai, and the other at Saket in Delhi. This expansion underscores Apple’s strategy to enhance its retail presence in India, especially in light of record sales recently reported.

According to a report from Business Standard, the new Apple store will take up space on the first floor of the Phoenix Mall in Hebbal. While the Bengaluru store’s size is expected to be similar to that of Apple’s existing store in the Select Citywalk Mall in Delhi, it will remain smaller than the expansive 20,800 square-foot venue located at Jio World Drive in Mumbai.

The lease specifics reveal that Apple has committed to approximately Rs 2.09 crore annually, equating to about Rs 17.4 lakh per month. Additionally, Apple will be responsible for a revenue share of 2% over the first three years, ramping up to 2.5% thereafter. Notably, the revenue-based component of the lease is capped at double the base annual rent, ensuring a level of financial predictability for the tech giant. The report also highlights that Apple has made a deposit of Rs 1.046 crore as part of the agreement. Furthermore, the terms stipulate that rental costs will increase by 15% every three years, providing a structured timeline for cost adjustments.

Interestingly, this announcement follows an earnings call where Tim Cook, Apple’s CEO, indicated that the company has plans for more stores in India slated to open this year. Reports suggest that Pune is among the cities being considered for a new Apple Store, with Delhi NCR and Mumbai also on Apple’s radar for potential expansions. This move indicates a significant commitment to growth in the Indian market, which is seen as a promising landscape for tech retail.

The upcoming Apple Store will be located within the sprawling 13-acre Phoenix Mall of Asia, a shopping destination that boasts approximately 1.2 million square feet of retail space. As part of the lease agreement, the mall operator has pledged to restrict leasing adjacent spaces to any of Apple’s competitors, thereby creating an exclusivity zone for the brand. This strategic move aims to ensure that the retail atmosphere remains favorable for Apple, allowing it to draw in more customers without direct competition in close proximity.

This expansion into Bengaluru is particularly notable as the region is a major tech hub in India, often referred to as the “Silicon Valley of India.” With its rich talent pool and a growing middle class eager for premium electronic products, Apple’s latest move could significantly boost its brand visibility and appeal in the southern part of the country.

In addition to retail growth, Apple’s investments are also expected to accelerate as it looks to strengthen its supply chain and service capabilities within India. These developments may hint at a future where Apple’s operational footprint in India is larger than ever, potentially influencing how consumers perceive and engage with the brand. As the company continues to innovate and expand, it will be interesting to see how these retail ventures play into its overall strategy in the fast-evolving Indian market.

Overall, the establishment of the new Apple store in Bengaluru is a clear indication of the company’s commitment to expanding its retail operations in India. With a solid strategy, financial backing, and a keen eye on the evolving consumer landscape, Apple appears poised for continued success in this dynamic market.