Apple plans distribution centre in India to cut price disparities
02 Dec 2016
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In order to get a better control of its supply chain, Apple will soon set up a distribution centre for its products in India for the first time, reports The Economic Times. This will facilitate consolidation of its logistics operations and ensure prices for Apple products remain the same offline and online.
The distribution centre will come up in Bhiwandi on the outskirts of Mumbai. It will be owned by Apple's global logistics partner DB Schenker, which is also one of Europe's largest logistics company.
A new distribution centre would ensure that supplies of its flagship products don't run out, especially in retail stores. In October, the stock for iPhone 7 and iPhone 7 Plus ran out well before it could meet the tremendous demand.
Currently, Apple products are brought into India through major cities like Mumbai, Delhi, Bangalore. The goods are then directly dispatched from the airport to distributors.
Online players manage to keep Apple product prices low because they bring them from places where value added tax is set to a minimum.
The distribution centre will come up in Bhiwandi on the outskirts of Mumbai. It will be owned by Apple's global logistics partner DB Schenker, which is also one of Europe's largest logistics company.
A new distribution centre would ensure that supplies of its flagship products don't run out, especially in retail stores. In October, the stock for iPhone 7 and iPhone 7 Plus ran out well before it could meet the tremendous demand.
Currently, Apple products are brought into India through major cities like Mumbai, Delhi, Bangalore. The goods are then directly dispatched from the airport to distributors.
Online players manage to keep Apple product prices low because they bring them from places where value added tax is set to a minimum.
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