AAPL Stock – India the Latest Battleground for Apple Inc.

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Apple Inc. (AAPL) has long been celebrated for its powerful approach to retail. After all, its Apple Store boasts the highest revenue per square foot of any brick-and-mortar operation.

AAPL Stock - India the Latest Battleground for Apple Inc.Of course, AAPL stock relies on high price points in the hundreds of dollars, which helps, but the Apple Store’s superiority to high-end retailers like Macy‘s (M) and Tiffany’s (TIF) puts the gadget maker in good company.

Now, Apple stock investors are welcoming news that there may soon be a high-end Apple Store in India, in partnership with Indian megaconglomerate Tata and its electronics retail arm Croma. While they won’t be free-standing stores, the 400 to 500 square feet of dedicated store-within-a-store space should sport the same design and experience traditional Apple stores are known for.

You may wonder why Apple has chosen to go this route instead of sticking to its traditional stores, which have won over AAPL stock investors around the world.

The answer lies in sourcing rules within India that prohibit certain kinds of direct foreign investment in retail. As the Times of India put it, “Going the Croma route gives Apple the opportunity to control the consumer experience without jumping through the bureaucratic hoops.”

Now, there are reasons to be enthusiastic about this move in theory. AAPL stock investors have been increasingly reliant on global growth to keep the train running, and a bigger push into India is part of that mission.

AAPL Stock Needs International Growth

However, there are two challenges that loom large for Apple stock right now: a slowdown in China that is sparking fears that metrics there will drag down the entire company’s growth; and the fact that remaining markets like India may not have nearly as much consumer might as some investors hope.

The wealth gap in India is huge, and that means many Indians could not afford the high-priced Apple iPhone and instead opt for cheap phones powered by Google Inc. — or Alphabet (GOOG, GOOGL) as it’s now known — and the ubiquitous Android operating system.

On the surface, it’s hard to imagine that Apple Stores in India will have much of an impact.

But when you consider the high stakes for international growth and the importance of momentum to offset challenges in China, the push by AAPL stock into India could be one of the most important battles it is fighting right now.

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP

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Article printed from InvestorPlace Media, https://investorplace.com/2015/10/aapl-stock-apple-store-india/.

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