Apple’s Retail Expansion in India: Third Store in Bengaluru

Apple is set to launch its third retail store in India, a significant milestone in its ongoing expansion within the country. Following the successful unveilings in Mumbai and Delhi last year, the tech company has secured a lease for a new outlet at North Bengaluru’s Phoenix Mall of Asia, located in Hebbal.

Details of the New Store

The upcoming Apple store will cover approximately 7,997.8 square feet, similar in size to the Delhi location at Select Citywalk but significantly smaller than the flagship Apple BKC in Jio World Drive, Mumbai, which exceeds 20,000 square feet. According to a report from Business Standard, Apple has agreed to a 10-year lease for this space, with annual rent set at ₹2.09 crore (₹17.4 lakh per month) starting August 2025. The lease officially began in November 2024.

Lease Terms and Revenue Sharing

Apart from fixed rent, the lease agreement includes a performance-based revenue-sharing component. Apple will contribute 2% of store revenues for the initial three years, increasing to 2.5% thereafter, capped at twice the annual guaranteed rent. Additionally, the company has provided a security deposit exceeding ₹1 crore, with both rent and deposit rising by 15% every three years, as reported by Business Standard.

Property Ownership and Exclusivity

The property is owned by Sparkle One Mall Developers, and the lease contains an exclusivity clause that prevents competitors from occupying nearby spots within the mall.

About Phoenix Mall of Asia

Phoenix Mall of Asia, covering 13 acres with a total retail space of 1.2 million square feet, is set to become a key shopping hub in Bengaluru. Developed by Phoenix Mills, this group operates 12 malls across eight cities in India and is in the process of creating an additional 5 million square feet of retail space.

Broader Strategy and Local Production

The Bengaluru retail location is part of Apple CEO Tim Cook’s larger plan to enhance retail operations in India, which he has labelled a “major growth market” during the company’s recent earnings discussions. The company has already initiated hiring for the new stores aligned with its retail growth strategy.

Apple is also bolstering its operational presence in Karnataka. Its manufacturing partner, Foxconn, is establishing an iPhone production facility in Devanahalli, located just north of Bengaluru. The new store and the nearby manufacturing facility underscore Apple’s increasing commitment to the area, influencing local real estate markets as developers advertise closeness to the Foxconn site.

Apple’s Journey in Indian Retail

Apple commenced its retail journey in India in 2023 with the launch of Apple BKC in Mumbai and Apple Saket in Delhi. The Business Standard report indicated that the Bengaluru store is on par with the Delhi outlet in dimensions but lacks the scale of Apple BKC.

Future Plans

Looking forward, Apple is expected to open four additional stores in India, targeting cities such as Pune, Delhi NCR, Mumbai, and another site in Bengaluru.