India could exempt Apple Stores from local sourcing rules for 2-3 years - report
An idea allegedly being floated by the Indian government could make proposed Apple Stores exempt from local sourcing regulations, but only for two to three years, according to a new report
Talks between the finance ministry and the Department of Industrial Policy and Promotion are already underway, in which the 2-3 year exemption has been raised as a possibility, according to Times of India sources. Recently, finance minister Arun Jaitley shot down the idea of a blanket exemption based on Apple's selling of "cutting-edge technology."
Regulations normally require that foreign firms setting up a single-brand retail store source at least 30 percent locally. Although Apple reportedly informed the government that it's beginning to buy chargers from India, the rest of the company's supply chain operates elsewhere.
Foxconn, at least, is hoping to build an Apple-focused manufacturing complex, which could conceivably start operations before the proposed time limit is up.
Last week commerce and industry minister Nirmala Sitharaman told reporters that she would speak to the finance ministry about the matter. If the earlier decision isn't reversed, Apple's only hope for launching Apple Stores in the near future could be personal intervention by Prime Minister Narendra Modi, who recently met with Apple CEO Tim Cook.
Talks between the finance ministry and the Department of Industrial Policy and Promotion are already underway, in which the 2-3 year exemption has been raised as a possibility, according to Times of India sources. Recently, finance minister Arun Jaitley shot down the idea of a blanket exemption based on Apple's selling of "cutting-edge technology."
Regulations normally require that foreign firms setting up a single-brand retail store source at least 30 percent locally. Although Apple reportedly informed the government that it's beginning to buy chargers from India, the rest of the company's supply chain operates elsewhere.
Foxconn, at least, is hoping to build an Apple-focused manufacturing complex, which could conceivably start operations before the proposed time limit is up.
Last week commerce and industry minister Nirmala Sitharaman told reporters that she would speak to the finance ministry about the matter. If the earlier decision isn't reversed, Apple's only hope for launching Apple Stores in the near future could be personal intervention by Prime Minister Narendra Modi, who recently met with Apple CEO Tim Cook.
Comments
There is no point making Mullins of phones just to be the market leader if all you're doing is breaking even which is whats going on with Android! Even if the high end market has perked, and I don't think it has, that's no excuse to kill yourself with low end, zero profit phones, let alone showing iOS clones. Taking about dumb.
The Indian cell phone market grew at 25% last year. While that will slow (since the country has a billion cell phones at this point), given the recent arrival of LTE, smartphone growth will be even faster than that number for the foreseeable future. Apple currently has only 2% of the share, implying that Apple's growth could be even faster than the rest of the smartphone market.
It is the last market of any stock price-moving consequence left for the iPhone. The only question is how and how fast Apple makes it happen, not if/when.
As a person who has worked (last 20 yrs) with people from this culture, whether born there or born in the US, one thing most all of them have in common, is the fact they do not want to pay what something is worth, let alone consider the quality and value as the driving factor in a purchase. They some how think they are negotiating, but in reality they are just cheap, I would not even say frugal. They are really good at justifying their cheap decisions, especially in the work place. I seen really bad business decision being made because they claimed they negotiate a lower price only to find out later they only got what they paid for which was a lesser product than what was needed.
India is not going to be like China; One they do not have a single authority making decisions for the entire country, i.e the finance minister making different decisions than another part of the country which is counter to each other. Over half the people live in poverty and the ones who are not living in poverty are doing everything they can to make sure the other half never succeed. They lack investment in their infrastructure, China spent 30 yeas and $100's B on putting in roads and unified electrical and communications systems. India is not spending money on infrastructure at a rate which will make a different. India will never do what China did which is to display people to ensure public work project will be successful. Lastly India does not have the same work ethics you see in China, China does everything they can to make sure everyone in China can have a job.
My experience has been quite the opposite to yours. Indians have an excellent sense of worth and quality, but tend to be frugal. They are no different from almost any other place where I've seen business done, in that they negotiate a lower price for everything. In fact, nowhere else have I seen a 'Walmart' mentality -- beat you down for costs and quality be damned -- more than in the US. Yes, India's infrastructure is poor compared to China's, but most Indians I know are quite proud to -- and would rather -- live in a rambunctious, free-wheeling, democracy with minority protection and a free press (by emerging market standards). Moreover, the 'soft' infrastructure (as opposed to the 'hard' infrastructure which is apparently what you have in mind) is head-and-shoulders above that of a country like China. The work ethic is quite good in my opinion, and if there's any place where I am seeing a precipitous decline on that front, again, it's here in the US. And, I've been here in the US for nearly 35 years, so arguably, I know the US better than you do India.
Mine is also just one data point.
Hardly. If there is a market, dominated by cheaper products, that doesn't mean you need to get into that tight spot as well by bringing prices of your products down. That is the last thing you wanna do.