India eases rules on local sourcing, paves way for country's first Apple Stores

Posted:
in General Discussion
The Indian government on Monday announced loosened policies towards local sourcing by foreign retailers, likely setting the stage for Apple launching its first stores in the country.




Foreign companies running single-brand stores now have a three-year grace period before they have to meet local sourcing quotas, Bloomberg reported on Monday. If a foreign business can show it's selling state-of-the-art technology, that grace period can be extended by another five years.

The government's Finance Ministry recently declined to give Apple an exception to the old sourcing rules, prompting Commerce and Industry Minister Nirmala Sitharaman to begin talks with her Finance colleagues. That appears to have led to compromises to accommodate Apple -- earlier in June, Bloomberg said that the government was willing to change regulations if it could get a solid timeframe on when local manufacturing might happen.

Apple's main assembly partner, Foxconn, is believed to be planning an Apple-focused factory for India, but even once a deal is signed it could take 18 months for the facility to be finished and start operations.

With the new rules, Apple will have to re-apply for permission to launch stores, Sitharaman told the press earlier today.

Comments

  • Reply 1 of 14
    jbdragonjbdragon Posts: 2,154member
    I still don't think it's worth it for Apple to get into that market. A Max 8 years before Apple would have to go along with the same old sourcing rules. I don't think it's worth it to get into that market. Maybe Satellite stores like how Apple is in Best Buy stores here in the U.S. That's the most I think Apple should do in that country and that may be even to much. There's so many other issues Apple would have to deal with also.
  • Reply 2 of 14
    beltsbearbeltsbear Posts: 314member
    jbdragon said:
    I still don't think it's worth it for Apple to get into that market. A Max 8 years before Apple would have to go along with the same old sourcing rules. I don't think it's worth it to get into that market. Maybe Satellite stores like how Apple is in Best Buy stores here in the U.S. That's the most I think Apple should do in that country and that may be even to much. There's so many other issues Apple would have to deal with also.
    As long as India can make phones well another source always helps. 
    mwhiteanantksundaram
  • Reply 3 of 14
    I am looking for the story I read earlier today about this. I think after someone resigned, this new rule was passed.
  • Reply 4 of 14
    dick applebaumdick applebaum Posts: 12,520member
    jbdragon said:
    I still don't think it's worth it for Apple to get into that market. A Max 8 years before Apple would have to go along with the same old sourcing rules. I don't think it's worth it to get into that market. Maybe Satellite stores like how Apple is in Best Buy stores here in the U.S. That's the most I think Apple should do in that country and that may be even to much. There's so many other issues Apple would have to deal with also.

    8 years is a long time ...  The thing about emerging markets, is that they emerge/change!

    Also, this could be an entree for other deals.

    Say,  if Apple were to setup an iDevice repair/refurbishing facility in India -- could that open the Indian market to high-quality (but lower cost) refurbished iDevices, and help build the Indian infrastructure at the same time.

    slprescott
  • Reply 5 of 14
    dougddougd Posts: 270member
    The Indian people are wonderful
  • Reply 6 of 14
    LoneStar88LoneStar88 Posts: 288member
    jbdragon said:
    I still don't think it's worth it for Apple to get into that market. A Max 8 years before Apple would have to go along with the same old sourcing rules. I don't think it's worth it to get into that market. Maybe Satellite stores like how Apple is in Best Buy stores here in the U.S. That's the most I think Apple should do in that country and that may be even to much. There's so many other issues Apple would have to deal with also.
    Wrong.

    The Indians are no dummies—even the bureaucrats.

    The market there for Apple products is potentially so much larger with full-fledged retail stores. And I think we're in for a surprise when we learn of the demand once the stores are in place.

    Given these first years of experience Apple and India will have, I think there will be new opportunities for both sides.

    There would also seem to be far fewer government-imposed restrictions (than in China) for software, social, and security aspects of the products.

    A more vibrant and productive software development economy could also be a welcome by-product for both sides.
    edited June 2016
  • Reply 7 of 14
    anantksundaramanantksundaram Posts: 19,305member
    This was all quite obvious, and in the cards, for anyone who willing to go beyond uninformed headlines. This board was rife with drive-by one-liners and put-downs on India, Apple and and India, retail in India, etc. (you know who you are). 

    It sure would be nice to hear back from some of them now...
  • Reply 8 of 14
    anantksundaramanantksundaram Posts: 19,305member
    I am looking for the story I read earlier today about this. I think after someone resigned, this new rule was passed.
    The guy that resigned -- the head of country's central bank, a brilliant economist who's going back to his (tenured) job at the University of Chicago -- did not have anything to do with any of this. 
  • Reply 9 of 14
    GymkhanaGymkhana Posts: 45member
    I'm sure no money changed hands, with this big breakthrough taking place... <wink/nudge>
  • Reply 10 of 14
    sreesree Posts: 110member
    jbdragon said:
    I still don't think it's worth it for Apple to get into that market. A Max 8 years before Apple would have to go along with the same old sourcing rules. I don't think it's worth it to get into that market. Maybe Satellite stores like how Apple is in Best Buy stores here in the U.S. That's the most I think Apple should do in that country and that may be even to much. There's so many other issues Apple would have to deal with also.
    They already have satellite and dedicated apple store. They are just franchisees, and not apple owned. There is no 30% local sourcing restrictions on that.

    What other issues? Seems like you have formed an opinion, and are finding reasons to back it.
  • Reply 11 of 14
    sreesree Posts: 110member
    That was actually quite well handled. No exception for apple, and the same flexible rules for everyone. Exception for apple never did seem right.

    Think 3-8years is a fair amount of time to get to 30% of local sourcing if a company is interested in doing so.
  • Reply 12 of 14
    tzeshantzeshan Posts: 1,996member
    I am looking for the story I read earlier today about this. I think after someone resigned, this new rule was passed.
    The guy that resigned -- the head of country's central bank, a brilliant economist who's going back to his (tenured) job at the University of Chicago -- did not have anything to do with any of this. 
    Head of central bank is no match to a job at U. of Chicago?  This is how strong India economy really is.  Cook is slowly putting Apple to death.  In his role he let iPhone 6 design to be leaked.  
  • Reply 13 of 14
    This is great news!
  • Reply 14 of 14
    singularitysingularity Posts: 1,329member
    tzeshan said:
    The guy that resigned -- the head of country's central bank, a brilliant economist who's going back to his (tenured) job at the University of Chicago -- did not have anything to do with any of this. 
    Head of central bank is no match to a job at U. of Chicago?  This is how strong India economy really is.  Cook is slowly putting Apple to death.  In his role he let iPhone 6 design to be leaked.  
    He left due to politics. He wasn't liked by the Indian government due to his tendency to say what he felt and didn't toe the line.
    His pay appears to be $36k for being the governor of India'so central bank. Which is amazingly low from a western perspective. 
    As for your comment about Cook.... what drugs are you on?
    edited June 2016
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