As per The Economic Times report, Apple is setting up a distribution center in India. The purpose behind this move is that Apple is functioning to establish a retail presence in India and has faced challenges due to India Government Regulations.
The report suggests that Apple will work with its global logistics partner, DB Schenker, who will set up and function the hub. The objective of the distribution center in India is to ensure that Apple’s products are infrequently sold out at the retail level and set pricing for offline and online sales. It will give better control of the supply chain in the country.
Due to excise duty and taxes Apple doesn’t have strong hold on pricing and availability. One source mentioned in the statement explained that the allocation hub will permit Apple to ease operations and rationalize its logistics and provide chains. The company expects that this move give it a stronger hold on enterprise Mac market by pushing more modified options to venture customers.
An Executives from the firm said that, 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.”
The distribution center will be located at Bhiwandi near Mumbai. Apple is also planning to open a R&D center and manufacturing its devices in India.