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Google eyes India stores in competition with Apple ( AAPL ),

sources say

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Company closing in on Mumbai, New Delhi

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Google only has a small number of physical stores, all in

US

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Pixel, other Google offerings to be in India stores,

source says

By Aditya Kalra

NEW DELHI, Feb 20 (Reuters) - Alphabet Inc's ( GOOG )

Google is close to deciding on locations in its key market of

India where it will open its first physical retail stores

outside the United States, three sources familiar with the

matter said.

Google counts India as a key growth market, where it has

committed to investing $10 billion. It currently has only five

physical stores, all in the United States, which sell its

products such as Pixel phones, watches and earbuds.

It is aiming to mirror a retail approach that helped Apple

Inc ( AAPL ) rake in billions of dollars in the last two decades

by showcasing its own products. Apple ( AAPL ) has 500 plus stores

worldwide.

Google is in advanced stages of finalising locations in

or around the capital of New Delhi, and the financial capital

Mumbai, said three sources, who declined to be named as the

process is confidential.

Google declined to comment on the matter.

The first source said the stores are likely to be around

15,000 square feet, and will take at least another six months to

open, though the timeline could change.

The IT hub of Bengaluru in south India was also considered,

but New Delhi and Mumbai are the frontrunners, the person added.

"The idea is to compete with Apple ( AAPL ) ... especially to target

the luxury segment," said the person, adding more stores will be

considered if the initial ones do well.

Google currently sells it products in India through

authorised retailers, as does Apple ( AAPL ). But in 2023, Apple ( AAPL ) CEO Tim

Cook visited India to open its first company-run stores in

Mumbai, and then in New Delhi.

Pixel phones in India cost from about $370 to $2,000 for

top-end models. Apple's ( AAPL ) iPhones cost from about $520-$2,130.

Google has also started making Pixel smartphones in India.

In 2024, Apple ( AAPL ) dominated the local market for premium

phones, priced above $520, with a roughly 55% share, compared

with Pixel's 2% share, research group Counterpoint said. The

fast-growing Indian market has about 712 million smartphone

users currently.

Google's plan to open the stores is firm and will be

executed soon, there are some standard regulatory and compliance

processes to clear before the stores can be set up, said the

second source, without elaborating on the issues.

A third source said one of the possible locations Google

is considering near New Delhi is in the satellite city of

Gurugram, where many global corporations such as Uber and Meta

have offices and the likes of Uniqlo have retail outlets.

In India, Google is battling many regulatory and legal

challenges. Among them are ongoing antitrust cases related to

its in-app billing system and abuse of market position in the

market for smart TVs.

In a top-level departure, Google lost its India head of

public policy this month, marking the second departure in around

two years from the critical role which is key to government

engagement.