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Is Apple Franchise REALLY For YOU? – Cost & Profit

Have you been scouring the internet for reliable information on getting an Apple Store franchise? Or did your most recent visit to the Apple Store inspire you to join this renowned organization? Then you’ve come to the right spot because we’ll cover an in-depth article on Apple’s business and its franchise opportunities in India.

Indeed, the Indian smartphone market is expanding at an extremely fast rate. Most Chinese and Korean companies, including Xiaomi, Samsung, Nokia, and many others, have been releasing new smartphones throughout the years, ultimately allowing them to generate enormous profits. But in most of these cases, their margin and sales were contributed due to following reasons;

  1. Affordable prices
  2. Varieties in Smartphone
  3. Exceptional and trendy designs

But what about premium brands like Apple? No worries! In this post, we’ll cover a detailed article on the Apple franchise with its capital required, cost, profitand step-by-step guidelines to get this franchise – and answer some common questions about the chain.

Apple Franchise Opportunity
  • Company: Apple
  • Founded: 1976
  • HQ: California, US
  • Industry: Electronics
  • No. of outlet: 500+
  • Model: Franchising & Self owned
  • Area served: Worldwide
  • Area Required: Min. 1000 sq ft
  • Total Initial Investment: ₹ 1Cr

Overview of Apple Franchise in India

Overview of Apple Franchise

Founded in 1976 by one of the America’s renowned entrepreneurs – Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple is one of the most recognizable and successful brands in the world, well-known for its innovative products, sleek designs, and cutting-edge technology.

Ever since its inception, Apple had a long and fascinating history and with its consistent innovation, a wide range of devices offering, and their ability to anticipate and respond to changes in consumer behavior and market trends has helped them to become a household name and a symbol of innovation, quality, and sophistication.

The company offers a wide range of product under a single brand name, including the iPhone, iPad, Mac, Apple Watch, and AirPods, as well as a suite of software services, such as the App Store, iCloud, Apple Music, and Apple Pay. Each of these products and services are designed in a such a way that work seamlessly together, creating an integrated and exhilarating user experience.

The chain has a significant presence in several countries across the globe, including India. Apple prefers to have a full control over its operation and their minimalist designs, high-quality materials, and attention to detail has helped them to acquire a significant market share in premium smartphone industry.

But, does Apple offers franchising opportunities to Individuals? The simple answer is – Yes, but as only Apple Authorized Service Provider. This is just a word word answer and we will be discussing in detail in the next section.

Apple – The Journey

Apple forayed in Indian market in 2007 with the launch of its first iPhone 3G. Since then, the chain has been gradually expanding its presence in India by opening several retail stores and authorized service centers across different cities. The demand for its franchising has been continuously growing and the chain has certainly recognized the huge potential of it.

Although Apple holds a relatively small market share in India that were calculated to be around 5.5% and majority of the market being dominated by Chinese brands such as Xiaomi, Vivo, and Oppo. However, The Apple’s CEO Tim Cook stated that “Apple is focusing in India and also sees an enormous potential for its brand”.

Key facts about Apple

Sr No.TypePrivate
1Trade NameApple Inc
2IndustryElectronics
3Founded1976
4Founders Or Parent CompanySteve Jobs,
Steve Wozniak,
and Ronald Wayne
5Corporate HeadquartersCalifornia, US
6Number of locationsOver 500+
7Area servedWorldwide
8ModelCompany-owned operations
9Product offeringiPhone, iPad, Mac, Apple Watch,
and Air Pod
10RevenueUS$394.33 billion (2022)
11Websitehttps://www.apple.com/

How much does an Apple Franchise Cost in India?

Apple Franchise Cost

Though the chain had entered in the Indian market in 2007 but their expansion plans were quite limited to Tier I cities. For an Interested applicants, Apple does offers franchising opportunities but it is certainly limited.

Basically Apple’s franchising model in India involves setting up an authorized reseller stores and service centers, which are operated by independent and tech-enthusiast business owners.

Franchising opportunities with Apple in India requires some strict adherence to the company’s brand and quality standards. Although the cost for becoming an Apple authorized service provider is not disclosed by the the company that left us to put an estimate figure to you. Nevertheless, According to our estimate, to be an approved Apple Franchise, one may require to put up an initial investment of at least ₹1 Cr for Reseller and service providers.

This initial investment does involves costs, such as security deposit, interior decor, equipment cost, marketing fee, genuine Apple parts, tools, training, and service guides.

Type of FeeCost and Other details
Total Initial Investment₹ 1 Crores
Floor areaMin. 1000 sq feet
Profit margin (On Products)8-12%
Profit margin(On services)Over 15-20%
Royalty FeeNA
Ad Royalty FeeNA

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How much is Apple Franchise Profit Margin?

Apple Franchise Profit Margin

The profit margin of an Apple chain does depends on several factors and to be true, almost all of their outlets are generating a positive cash flow.

The profitability of their outlets are generally attributed to factors mentioned below;

  1. Selection of outlet at high footfall area
  2. Complete control over its outlets
  3. Perfectly designed to offer intuitive experience to its customers.

Moreover, considering its expertise in the smartphone industry, targeting high profile users, exceptional smartphone security, reliable brand image, and worldwide presence will definitely help its franchisee partner to earn at least 8-10% of profit margin from their general business operations.

Additionally, for an approved service program partner, you may also anticipate to earn around 15% of profit margin or over 1 lacs per month. It might seems like a low percentage to you, but to just give a rough idea one can easily earn over lacs per month by becoming an Apple store franchise owner.

Benefits of Owning an Apple Franchise in India

Owning an Apple store in India comes with several benefits, such as:

  1. High brand Image:
    • Undoubtedly, Apple is one of the most reliable and valuable brands in the world, and owning an authorized Apple store or service center in India can help establish a strong brand image for your business.
  2. Access to premium products:
    • As an authorized Apple reseller companies, you will have access to genuine Apple parts, tools, training, service guides, diagnostics and resources to perform these repairs, which can help attract customers and drive sales.
  3. Training and support:
    • Apple provides training and support to its authorized resellers and service providers, helping them maintain the high quality standards.
  4. Worldwide presence:
    • Apple holds a strong presence in Indian market as well as also recognized as one of the most trusted and reliable smartphone across the globe, which will provide a sense of working with a renowned brand.
  5. Known for Innovation:
    • Apple has been offering leading and exceptional innovation products and services to their consumers that has helped them to build a brand image among its customers.

Challenges and Risks of Owning an Apple Franchise in India

Owning a franchise or starting a business main involves a certain kind of risk. While becoming an approved outlet holder may prove beneficial to you, but none can underestimate the challenges and risks for it;

  1. High Competition:
    • India is one of the highly price sensitive market where a product future is certainly depend on its pricing. And this could be the main reason why Apple has still got only 5% market share in India.
  2. Dependence on Single brand:
    • It could be one of the potential risk of working with a single brand, and any changes in the Apple’s policies or products can have a significant impact on the franchisee’s business.

What does it require to become an Apple Franchisee?

  1. First and most important – One should be financially well-qualified and have good credit to start an Apple location, and should be ready to invest minimum 1 Crores with a min floor area of 1000 sq feet.
  2. Interested applicants are advised to dedicate themselves to the Apple business and follow the company standards and maintain their legacy.
  3. Interested prospects must undergo and complete the necessary training program offered by Apple’s team.
  4. Interested franchisees should have a passion to work in the fast-food industry and should possess the leadership and financial skills to operate a Apple reseller outlet.
  5. Applicants are advised to secure a suitable location that meet Apple Store franchise requirements, such as high visibility and easy accessibility.

How to Open An Apple Store Franchise?

For starting an Apple location will require a moderate investment that may offer an impressive gross profit margin. Additionally, the Apple chain may provide several benefits, and interested candidates can take up franchise outlets in their city through their expertise and endless support systems.

One can avail this franchise using below mentioned steps;

  1. Please submit an email to aasp_application_euro@apple.com, providing all of the information below:
    • Legal business name (Inc. DBA if applicable) under which the business conducts its operations
    • Principal/owner
    • Location address(es) (note: Apple does not accept home offices or PO Boxes)
    • Location phone number
    • Your business domain email address
    • Your business website
    • Previous experience or history with Apple as a Service Provider or Reseller
    • Business purpose including customer segment or type

Final Takeaway – Conclusion

To conclude it, one may consider Apple chain as one of the reliable and lucrative opportunity for entrepreneurs who are willing to invest in their business and meet brand’s strict quality standards.

Before starting an Apple location, one might have to put up a minimal required investment and should be ready to take risk involved in it. While Apple continues to expand its reach in India, the Apple Authorized Service program looks like an attractive option for business owners looking to tap into the growing demand for their products in the country.

The Bottom line – In case you are interested in the Electronics industry and want to take advantage of the opportunity with moderate investment, then you can start a Apple Franchise in India. With its immense legacy, expertise, and robust supply chain, one may experience stable and steady growth in their entrepreneurial journey.

So, what are you waiting for? Go and start your entrepreneurial journey with Apple!!

Good Luck!! Happy Franchising!!

Read more:

Want to explore more? Then check out below franchising opportunities.

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FAQ

  1. How much does it cost to Start a Apple Franchise?

    Ans: The franchise cost for an Apple Authorized Service Provider (AASP) will cost approximately ₹1 Cr with a commercial walk-in service location with dedicated service personnel in an easily accessible location.

  2. Does Apple have a Franchise?

    Ans: Yes, Apple does offer franchising program but it is quite limited, and in India, one can only apply for Apple Authorized service provide program.

  3. Is Apple Franchise Profitable?

    Ans: Absolutely yes. Apple is indeed one of world’s most recognized and leading smartphone manufacturers that offers a wide range of products and one can anticipate to earn around 8-12%.

  4. How to Get Apple Franchise?

    Ans: To become an approved Apple Store Franchise owner, send out a detailed email at – aasp_application_euro@apple.com

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