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Apple has had a bit of a hang-up in India. The company was held back from opening their stores due to a rule that “30 percent of goods sold by foreign companies must be manufactured or produced in the country.” As is well known, a majority of Apple’s manufacturing comes from China, not India. But according to certain sources, it looks as though Apple might get a pass and start opening the retail locations previously planned for India.
It appears that Apple will not have to immediately obey to the 30 percent rule. Both the Department of Industrial Policy and Promotion and the Ministry of Finance are currently entertaining the idea that Apple could start searching for manufacturing prospects in India after the locations have opened. Thus, the company could soon start to push some of its manufacturing to locations in India, and thereby comply with the rule.
According to Apple, they have already been purchasing chargers from the country. To boot, Apple is apparently setting up a maps development center in Hyderabad as well as an iOS app and design accelerator in Bangalore, which would help the company establish a presence in India.
Apple was originally denied the request to build retail stores in India back in 2015. At that time, the government issued an exemption for single-brand businesses that delivered top tier “cutting-edge technology.” However, India’s finance minister, Arun Jaitley, dismissed the idea.
Under this new ruling, the intended date for Apple’s compliance is two to three years, according to a source at Times of India.
All of this follows Tim Cook’s recent trip to India, where he met with Prime Minister Narendra Modi as well as other business leaders and politicians. Apple is looking to set up shop in the country, because they currently can only gain access to the retail market through third-party distribution and resellers; which has required a unique selling strategy on Apple’s part.
India is currently a big center of revenue for Apple. According to Mac Rumors, Apple’s revenue from India surpassed a whopping $1 billion last quarter; up a total of 56 percent.
What do you think about Apple’s progress in India? Let us know in the comments.
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