Google, LG, Microsoft, 18 Other Firms Can't Open Stores Or Advertise Near Apple Store In Mumbai: Report

APPLE, a popular smartphone maker based in Cupertino, California which is all set to introduce its first two retail stores in India on April 18 and April 20 in Mumbai and Delhi is reportedly getting a major lease advantage. According to the reports, the lease-related details of the store have surfaced online and according to it, 22 competing brands including some big names are not allowed to open stores or have advertisements there.

According to an Economic Times report citing the agreement accessed by data analytic firm CRE Matrix, brands such as Garmin, Hitachi, HP, HTC, IBM, Intel, Lenovo, Nest, Panasonic, Toshiba, Amazon, Facebook, Google, LG, Microsoft, Sony, Twitter, Bose, Dell, Devialet, and Foxconn would not be permitted to open stores and would be limited to the Apple Zone. Surprisingly, the document left out the name Samsung.

According to the report, Apple has leased the property for over 11 years and has a 15 percent rent escalation provision with the mall every three years. In addition, the brand would pay a Rs 42 lakh per month minimum guarantee as well as a 2% revenue share for the next three years. Following that, the company would pay 2.5 percent of the revenue share.

Interestingly, the move could be part of a business strategy, as the tech giant has been aggressively expanding its operations in India over the last six years. According to a report, the company will hold more than 60% of the market in 2023. Another interesting fact is that the company is quietly shifting its production to India.

Apple is also opening its second retail store in Saket in the Select Citywalk Mall in Saket on April 20. Additionally, the reports also suggest CEO Tim Cook would be coming to India to inaugurate both stores.