Apple one step closer to Indian stores after latest finance ministry decision

Posted:
in General Discussion edited August 2016
India's finance minister has reportedly ratified a proposal that would allow single-brand retailers like Apple to be exempt for local sourcing rules for three years if they provide "cutting-edge" technology.

Apple should now be able to resubmit an application to open stores with better odds, Bloomberg sources said on Wednesday. The company's first attempt to get a greenlight for retail was shot down after the finance ministry wasn't ready to grant such an exemption. That led Commerce and Industry Minister Nirmala Sitharaman to intervene, setting the stage for the ongoing turnaround.

Normally Indian regulations require that foreign single-brand retailers source at least 30 percent of their goods or components locally. That's currently impossible for Apple, which has only just begun to tap Indian suppliers. The vast majority of its parts and manufacturing are handled by companies in China, Korea, Japan, and Taiwan.

Its main manufacturing partner, Foxconn, is believed to be working towards an Apple-focused factory in India, but that complex may take 18 months or more to start operations if and when it's approved.

Despite some progress, the Indian market has proven tough for Apple, owing mostly to the price of its products. Whereas many phones sold there cost the equivalent of $150 or less, even the iPhone SE is far more expensive. The company has resorted to keeping older models on sale as result, in some cases well after they've been pulled from shelves in other countries.

Comments

  • Reply 1 of 3
    ajmasajmas Posts: 557member
    The company has resorted to keeping older models on sale as result, in some cases well after they've been pulled from shelves in other countries.

    It will be interesting to see if the situation in India forces Apple to think more about the window of acceptable performance degradation? Currently, you are good for about three years of OS updates, on an iPhone, and at that point your should probably evaluate whether that final OS update will lead to more frustration than it is worth. Additionally, what will this mean for the app store and third-party vendors?
    edited August 2016
  • Reply 2 of 3
    This sure is taking a long time ; )
    latifbp
  • Reply 3 of 3
    jbdragonjbdragon Posts: 2,149member
    A 3 year pass before the 30% rule kicks in is still not worth it. I wouldn't do it. Let the high end 3rd party Retailers sell the iPhone and other Apple products. Don't cave to India for this weak deal.
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