Apple has an extensive plan to expand its retail operations globally through the second half of 2023 deep into 2027. The focus of this plan is on Asia, particularly in China, Korea, Japan, India, and mainland China outside of Hong Kong. The plan involves opening new stores, including a new flagship Plus store in the Jing on Plaza in China and several new mall stores in China over the next few years. In Korea, two new stores are expected to open in Seoul and another District later this year. In Japan, there will be several new stores and remodels. Additionally, Apple will relocate its retail store in Perth, Australia.
Apple is also looking to expand its presence in India, with three new stores planned for later this decade, including one in New Delhi and two in Mumbai. This expansion is a reflection of where economic growth and consumption will come from in the next few years. Apple is well-positioned in these markets, but they anticipate much more growth in the future.
The plan is not just about locking people into the Apple ecosystem, but also getting more switchers from the likes of Xiaomi, Huawei, and Samsung. The smaller stores generate on average about 40 million dollars annually, the lower-tier outdoor stores about 45 million dollars, and the flagship ranges generate between 75 million dollars to 100 million dollars annually.
While Apple has been hugely successful so far in Asia, there is still much more growth to do in China, Japan, and India. The local population is very used to their own search engines and internet usage, which is different from how Apple functions. However, this expansion plan follows their retail approach, and it is an expansion rather than an acceleration. This is in line with what they were doing pre-COVID and flies in the face of people who thought Apple would no longer open stores or expand into these markets at the rate that they used to.
Overall, Apple’s plan to expand its retail operations globally is a significant upgrade in the Asia Pacific region. They are well-positioned in these markets and anticipate much more growth in the future.