Reliance Retail to close 16 Apple iStores

Reliance Retail to close 16 Apple iStoresReliance Retail, a division of Mukesh Ambani-led Reliance Industries Ltd (RIL), is reportedly going to close 16 of its 20 exclusive Apple iStores due to differences with the iPhone/iPad-maker over design of the stores.

People familiar with the matter said that Reliance decided to close most of the stores because of highly strict standards set by the Cupertino, California-based tech giant. The sources added that the Indian company was not with the returns it was getting from the iStores.

The Cupertino firm's new standards include a standardized design for its stores, with higher ceilings, more white LED lights, wooden floors and new display tables among other things.

When contacted, a senior executive who operates a chain of Apple stores, said, "Complying with such specifications in a market like India may not always make business sense since Apple is still a niche brand and in the current economic environment it becomes an added expense to change store design."

The executive added that 12 of the store did comply with Apple's new norms but the company decided to convert them into Digital Xpress store because of their prime locations. These Digital Xpress stores will also offer Apple products along with products from Apple's rival brands.

The reported closure of Apple iStores may make a dent in the Cupertino firm's bid to boost sales of its products in India, where its share of the mobile devices market is still lagging far behind Samsung.