Indian government expected allow Apple Retail Stores without any sourcing requirement for 2-3 years

“The government is expected to allow Apple to open its own retail outlets in the country without any sourcing requirement for two-to-three years as it tries to work out an arrangement under which the Cupertino, California-based company will agree to local purchases once it gets a stronger toehold in the country,” Surojit Gupta and Siddarth Srivastava report for The Times of India.

“Sources told TOI that discussions have already kicked off between the finance ministry and the department of industrial policy and promotion (DIPP) and the option of allowing the maker of iPhone and iPads without sourcing requirements in the initial years has been floated,” Gupta and Srivastava report. “For companies opting to open stores under the single-brand retail format, the government has mandated 30% sourcing from local vendors. Last week, TOI was the first to report that the government is expected to relax norms for Apple after commerce and industry minister Nirmala Sitharaman indicated a review at a press conference.”

“Currently, the company sells its products through distributors,” Gupta and Srivastava report. “Its chief executive Tim Cook was in India to drum up support for its plans to open its own stores as well as making it presence even stronger in the country, which is likely to serve as one of its biggest markets for years to come.”

Read more in the full article here.

MacDailyNews Take: As we’ve already remarked on Apple Retail Stores in India:

That’ll be worked out eventually. — MacDailyNews, May 24, 2016

SEE ALSO:
Indian government discussing waiver to permit Apple Retail Stores – May 30, 2016
Blow for Apple and Indian consumers as Indian government pushes protectionism – May 25, 2016
Blow for Apple and Indian consumers as Indian government pushes protectionism – May 25, 2016
Apple hits setback in push to open retail stores in India – May 24, 2016
Apple’s U-turn in India: From arrogance to servility – May 23, 2016
Apple finds potential new factory hub – in India – May 23, 2016
Apple’s Tim Cook samples Bollywood, cricket, in bid to woo India – May 21, 2016
India shows Apple CEO Cook the love it’s yet to give the pricey iPhone – May 20, 2016
Apple CEO Cook: ‘We are in India for the next thousand years’ – May 20, 2016
Watch Apple CEO Tim Cook at his first cricket game in India – May 19, 2016
Apple opens Maps development office in Hyderabad, India – May 19, 2016
Apple CEO Cook debuts in India – May 18, 2016
Apple to open first-of-its-kind iOS App Design and Development Accelerator in India – May 18, 2016
Tim Cook visits India: Apple to expand its Indian software development center, build local start-up accelerator program – May 17, 2016
Apple Retail Stores to open in India by end of next year – May 16, 2016
iPhone sales surge 56% in India as Apple eats into Samsung’s high-end share – May 8, 2016
Apple deprivileged as India bows to Washington D.C. consensus on mobile phone import tariffs – May 7, 2016
India rejects Apple’s plan to import and sell refurbished iPhones – May 3, 2016
Indian government panel paves way for wholly-owned Apple retail stores in India – April 28, 2016

[Thanks to MacDailyNews Readers “Fred Mertz” and “Dan K.” for the heads up.]

8 Comments

  1. Obviously it would take a while to build up a local Indian Apple manufacturing operation and the government there is now realizing that. No point in punishing the market and Apple in the interim until that can happen.

    Disingenuously trite trolls can please refrain from their usual doofus inanities on the matter.

  2. How is samescam complaining about Apple selling iPhones in India? Do they make 30% of the product there? Just curious. I guess the low end market is Indian made?

  3. The kind of restriction being addressed doesn’t even make sense.

    Is the requirement that Apple set up a scheme by which the 30% of the value of each Apple device is domestically produced in India? Or could Apple just set up a curry vendor in each store and sell products only up to 2.3 times the curry shop sales? Does the requirement dictate that Apple include 30% domestic Indian production in every device, world wide? Are there to be India-specific products which meet the content goals that are different from the world-wide production configuration? Can Indian companies produce the India-specific components, ship them to Taiwan for incorporation into the final product and have the final products containing the required India-made content sold only in India? How would one value those components? Each item in an iPhone is pretty cheap compared to the selling price of the final product. The cost to produce an iPhone is only about 65% of the sales price. Is India suggesting that Apple just leave the markup in India? That way they get the money without actually doing anything?

    The lack of conceptual understanding of technology products and their production shown by this rule is astounding.

  4. So India has an economic protection system in place so that foreign companies must produce 30% in their country or be denied direct sales single brand access to their economy.

    Hmmhhh… Wonder what Apple’s position would be if the US required them to source 30% of their components in the US?

  5. So India is openly hostile against LGBT rights and in fact being Gay is illegal and punishable by law.

    Yet Apple and other notable tech companies condemn North Carolina, shut down plans for investing in North Carolina and yet now invest in creating jobs in India….

Add Your Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.