Ruling in India Clears Way for Apple's Long-Awaited Retail Expansion

by

The Indian government today announced a few changes to its rules on foreign direct investments (FDI) within the country, which previously required 30 percent of goods sold by a foreign company to be manufactured or produced within India (via The Times of India). The rule stagnated Apple's retail store growth within the country due to most of its products being created in China.

Now, Apple is going to be the recipient of a 3 year "relaxation" that India is introducing on its local sourcing rules, which was predicted earlier in the month, in addition to an extension of another 5 years on top of that if it can prove that the products it sells are "state of the art." India has previously exempted companies who proved such quality over the last few years, which prompted Apple to file a new application with the Indian government in May.

apple store logo 1

Apple's plans to open stores in the country had suffered a setback as the Foreign Investment Promotion Board (FIPB), under the finance ministry, red-flagged a panel's recommendation to relax the mandatory local sourcing norm for the Cupertino-based company to sell its products through the single-brand retail window.

The panel comprising representatives from departments of industrial policy and promotion (DIPP) and information technology had recommended a waiver from the 30% sourcing norm on the ground that Apple's products were "cutting-edge", which allows for doing away with the domestic procurement rule.

If it gets the 5 year extension, Apple could open and run retail stores in India for 8 years without needing to source products locally. Last month, Apple CEO Tim Cook met with Indian Prime Minister Narendra Modi to discuss these issues and reiterate India's importance to Apple's global iPhone market.

Currently, Apple's largest presence in India comes in the form of its Authorized Mobility Resellers program, which saw the Cupertino company partnering with third-party resellers to introduce an Apple presence in the country without directly installing full-blown Apple Stores.

Tag: India

Top Rated Comments

(View all)
Avatar
57 months ago

This is interesting and puts Apple in a position where they don't want their ego to be bruised -- hopefully it should encourage some really great Mac updates! Let's stay positive :)

? Their products are already state of the art. Sounds like business as usual to me.
Score: 8 Votes (Like | Disagree)
Avatar
57 months ago

Not surprised and expected. That is why Tim was in India. All this delay was due to pressures from other suppliers. Don't forget, everyone bribes - not just Apple!

Yep. Other suppliers wanted Apple to comply with the same rules as everyone else. Can't say that I blame them. The 3 + 5 years seems like window dressing to me since Apple will be in compliance within 2 years. The Foxconn plant should be up and running in 18-24 months.
Score: 4 Votes (Like | Disagree)
Avatar
57 months ago

With the bribery comments right at the top with being the most liked, I at times wonder, even with the privilege of being born in the "first world" is education that rare? Having a proper read at the articles could probably fill that void, India just gave away to the Foreign Direct Investment in a lot of sectors, if one thinks this happens just "for Apple" then good for them, but they just opened up their market for defence, pharmaceuticals, airlines etc. http://timesofindia.indiatimes.com/business/india-business/Big-reforms-Government-introduces-100-FDI-in-defence-civil-aviation/articleshow/52831409.cms

In India, irrespective of the written rules, to get things done and moved along, one needs to make sure the right people benefit and sign the dotted line. We look at the situation, as corrupt and unacceptable, but that is cause we lack the knowledge of the culture, and it is us that are frankly naive. In the west, same happens, these companies lobby our governments, and we Believe we don't have corruption....not true
Score: 3 Votes (Like | Disagree)
Avatar
57 months ago

In India, irrespective of the written rules, to get things done and moved along, one needs to make sure the right people benefit and sign the dotted line. We look at the situation, as corrupt and unacceptable, but that is cause we lack the knowledge of the culture, and it is us that are frankly naive. In the west, same happens, these companies lobby our governments, and we Believe we don't have corruption....not true

I just at times feel a little bad, I was born in India but I'm only half an Indian with British ancestry and believe me, for almost 22 years of my life, I was never a fan of that place.
But..
Things are actually changing with the new set of rules, and an updated government which is believe it or working for India against the previous "family orianted" idiots.

Now that the things are actually getting better, albeit at a slow place and that's understandable as it was horrible in the previous times with open ended corruption and still is, but even a little progress that has happened is a big deal when governing such a large populace.

India even got a better rank in the http://www.livemint.com/Politics/EcOTkT1wYfGkC0BvPbth4M/India-improves-ranking-in-global-corruption-index.html
While countries such as Brazil got worse, and it's surprisingly better score in the Indian subcontinent.

Sorry for the rant, I just idolised the western standard growing up that there is very little of India left in me, but however it's perceived over here is like a spit in the face.
Score: 3 Votes (Like | Disagree)
Avatar
57 months ago

I just at times feel a little bad, I was born in India but I'm only half an Indian with British ancestry and believe me, for almost 22 years of my life, I was never a fan of that place.
But..
Things are actually changing with the new set of rules, and an updated government which is believe it or working for India against the previous "family orianted" idiots.

Now that the things are actually getting better, albeit at a slow place and that's understandable as it was horrible in the previous times with open ended corruption and still is, but even a little progress that has happened is a big deal when governing such a large populace.

India even got a better rank in the http://www.livemint.com/Politics/EcOTkT1wYfGkC0BvPbth4M/India-improves-ranking-in-global-corruption-index.html
While countries such as Brazil got worse, and it's surprisingly better score in the Indian subcontinent.

Sorry for the rant, I just idolised the western standard growing up that there is very little of India left in me, but however it's perceived over here is like a spit in the face.

Ive been to Indiana few times for work, love it. The people are fantastic ! Though our politicians are just as bad as India ones...We just like to pretend ours are better cause it's the west lol. Money rules no matter where you are. Indian is growing very fast, I was in Hyderabad and was very impressed, India will grow fast with the middle class expanding. I look forward going back to india in the future to do more traveling .
Score: 3 Votes (Like | Disagree)
Avatar
57 months ago

Not surprised and expected. That is why Tim was in India. All this delay was due to pressures from other suppliers. Don't forget, everyone bribes - not just Apple!

See Tim?....... That extra suitcase of cash came in handy. :p

You can take off the red dot, Tim.
Well played.

I guess Apple's suitcases of money paid off... I wonder how many people got paid off for this.

A recurrent theme anyone? A little sensitivity wouldn't hurt. Corruption has many forms, usually back door in the west.

Back to the article - major changes have happened in the Indian economy today hence apple's approval with many other major companies like IKEA. So no Tim's suitcase didn't do the trick sadly.

Apple knows the rules now. 30% local sourcing and you have 8 years to get your act together. It is simple as that. Nothing to do with Tim's invisible red tikka.
Score: 2 Votes (Like | Disagree)

Top Stories

Samsung Mocks Apple for Ditching Power Adapters With iPhone 12 Lineup

Thursday October 15, 2020 11:51 am PDT by
Samsung on its social channels is mocking Apple for removing the power adapter from the iPhone 12 lineup and other iPhone models, pointing out the fact that the Samsung Galaxy smartphones continue to ship with a power adapter. "Included with your Galaxy," reads a Samsung Facebook post that features a picture of a power adapter. Apple notably is no longer providing power adapters or...

iPhone 12 Pro Pre-Orders Already Selling Out With Delivery Times Pushing Into November

Friday October 16, 2020 6:35 am PDT by
Apple today opened pre-orders for the 6.1-inch models of the iPhone 12 and iPhone 12 Pro through its website and the Apple Store app, and estimated delivery times are already slipping into November for select configurations in the United States. Customers ordering a SIM-free/Pacific Blue/128GB version of the iPhone 12 Pro, for example, are already facing an estimated delivery window of...

HomePod Mini Cable is Non-Detachable, Ends With USB-C Connector for Use With Included 20W Power Adapter

Friday October 16, 2020 12:45 pm PDT by
While not detailed in the tech specs, MacRumors can confirm that Apple's new HomePod mini features a non-detachable power cable that ends with a USB-C connector for use with the 20W power adapter included in the box. With the switch to USB-C, the HomePod mini could potentially be powered by a wider range of devices and peripherals, ranging from MacBooks to USB-C battery packs with enough...

Apple's New MagSafe Charger and Cases Begin Arriving to Customers

Saturday October 17, 2020 10:10 am PDT by
Apple's new MagSafe charger and cases have begun arriving to some customers earlier than expected, and images of the accessories have started to surface on Twitter. The photos provide a first look at the products in real-world use. As of writing, some MagSafe cases are also available for pickup at select Apple Stores in countries like the United States, Canada, and Germany. Filip...

New Google App Feature Lets You Hum a Song to Search for It

Saturday October 17, 2020 4:05 am PDT by
Google has added a new feature to its Search app that allows you to hum a song that's stuck in your head, and then use the company's machine learning algorithm to try and identify it. In the Google app or using the Google Search widget, tap the mic icon and say "what's this song?" or click the "Search a song" button. Then start humming the tune for 10-15 seconds. When you're done, the...

Brazilian Certifications Suggest iPhone 12 Mini Features 2,227mAh Battery and iPhone 12 Has 2,815mAh Battery

Friday October 16, 2020 1:08 pm PDT by
Apple's iPhone mini has the shortest battery life out of all the iPhones in the iPhone 12 lineup due to its small size, but Apple has not provided public information about the battery's capacity. A regulatory filing from Brazil, however, suggests the iPhone 12 mini has a battery capacity of 2,227mAh. The same regulatory information says the iPhone 12 features a 2,815mAh battery, which is...

Apple Offering Free AirPods With iPhone 11 Purchase in India as Part of Diwali Celebration

Friday October 16, 2020 12:35 pm PDT by
Apple today launched a new Diwali promotion in India that will see the company providing customers with a set of AirPods with the purchase of any iPhone 11 model. The new iPhone 12 models are not part of the promotion. Apple is offering the standard AirPods With Charging Case free with purchase, but customers can choose to upgrade to the AirPods with Wireless Charging Case or the AirPods Pro....

Apple Event to Unveil First Apple Silicon Macs Could Happen on November 17

Friday October 16, 2020 2:24 am PDT by
Apple will hold another digital event on November 17 to announce its first Apple Silicon powered Macs, according to frequent leaker Jon Prosser. Apple has already said that this year it intends to introduce the first Mac powered by an Apple Silicon chip instead of an Intel processor. One thing it hasn't revealed is the date it will be announced. According to Prosser's source, that date is No...

Apple Online Store Down Ahead of iPhone 12 and 12 Pro Pre-Orders

Thursday October 15, 2020 11:15 pm PDT by
Apple's online store is down ahead of iPhone 12 and iPhone 12 Pro pre-orders, which are set to begin at 5:00 a.m. Pacific Time in the United States. "You're... early," reads the Apple Store message when attempting to visit the U.S. website. "Pre-order begins at 5:00 a.m. PDT. Enjoy the extra sleep." Apple used to do new device pre-orders at 12:01 a.m. Pacific Time, but since last year, has...

When You Can Pre-Order the iPhone 12 and 12 Pro in Every Time Zone

Thursday October 15, 2020 10:55 am PDT by
Pre-orders for the iPhone 12 and the iPhone 12 Pro are set to kick off on Friday, October 16 at 5:00 a.m. Pacific Time, which is a new launch time that Apple adopted as of last year. Apple is planning to make the new devices available in multiple countries around the world simultaneously, so we've made a guide to let MacRumors readers know when pre-orders will in their country. Pre-orders...