Apple CEO Tim Cook asks India team to set high service standards, bring to table a fruitful experience

KOLKATA: Apple Inc CEO Tim Cook told his India team to recreate the global Apple Store experience in the country and build new benchmarks for both sales and after-sales services through such flagship outlets. He also exhorted them to clear misconceptions about refurbished iPhones, said two people with knowledge of the proceedings.

Full coverage: Apple CEO Tim Cook's maiden visit to India

At a 45-minute staff meeting on Friday at the company’s Gurgaon office at One Horizon Centre with around 175 employees — the Bengaluru and Mumbai offices logged in by video-conference — Cook reiterated what he’s said several times before: India is at a point of takeoff, there is no better time for Apple to strike out aggressively on the path of growth and the country will contribute significantly to revenue in the long run.

Cook also had a nearly hour-long meeting with top Bharti Airtel executives on Friday, meeting chairman Sunil Mittal and India CEO Gopal Vittal. Mittal’s son Kavin Mittal is said to have briefed Cook about Hike, his instant messaging startup.

"The two parties spoke about strengthening their existing relationship," a person familiar with the discussions said.

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During the town hall with India employees, the Apple CEO said the company will not flood the country with its company-owned stores since it does not want to damage the existing distribution network comprising thousands of neighbourhood mobile retail stores, large retail chains and franchise-owned Apple exclusive outlets. Instead, Cook told his India team to build Apple Stores in key markets such as the metros and where there is a significant young population with high aspirations and disposable income. He said Apple Stores are necessary to set benchmarks for sales and service, including after-sales service support in just a few minutes. He said Apple’s experience is that wherever it has set up company-owned stores, these help expand the market.

At the same time, Cook wants staff to allay apprehensions about the sale of refurbished iPhones. He said these phones will be refurbished by Apple, certified by the company and have warranty support. He told the team that refurbished iPhones will help Apple breach the affordability gap in India and win new consumers.

An email sent to Apple on Friday evening regarding its staff meeting did not elicit any response till press time.

Apple’s plea to import and sell refurbished iPhones in the country has been turned down twice by the Centre on concern that it will lead to dumping of old products. Even Apple’s rivals have been lobbying against this, arguing that it would defeat Prime Minister Narendra Modi's Make in India campaign and lead to the piling up of e-waste.

However, the Centre is likely to soon allow Apple to set up company-owned stores, exempting it from the 30 per cent local sourcing condition. Cook is scheduled to meet Modi on Saturday.

Cook also visited Zomato, which is in the same building as Apple’s office. He also toured three retailers in the Galleria market in Gurgaon that includes two Apple exclusive outlets and one multibrand store to get a first-hand feel of the market. Cook is said to have ended the day with a dinner hosted by US Ambasador to India Richard Verma.

(With inputs from Gulveen Aulakh and Surabhi Agarwal in New Delhi)