New reforms by the Indian government will allow Apple Stores to open in the country

New reforms by the Indian government will allow Apple Stores to open in the country
The last we heard about Apple's desire to open Apple Stores in India was that the commerce ministry and the finance ministry were planning on discussing the matter. The former was in favor of granting Apple a waiver so that it wouldn't have to abide by a regulation that covers all foreign owned stores, and demands that 30% of the goods they carry be made in India.

But it looks like this is a moot point now as the country introduced today some new rules on foreign investment in the country. The new regulations will allow Apple to open its retail stores in India. The news comes a couple of days after central bank governor Raghuram Rajan announced that he would not seek a second term.

The new reforms mean that Apple can take advantage of the country's newly lax rules on local sourcing of goods sold in foreign owned stores. The new rules will be in place for three years, and can be expanded to five years if the store sells items that are "state of the art." While Apple has yet to comment, India's secretary of the Department of Industrial Policy and Promotion, Rajesh Abhishek, said that India will be in touch with Apple to see if they are interested in opening Apple Stores in the country now that the regulations have been relaxed.

Last month, India rejected Apple's request to sell refurbished iPhones in India, and the new reforms do not seem to have anything to do with that decision. Also in May, Apple CEO Tim Cook met with Indian Prime Minister Narendra Modi. The country will be the second largest market in the world for smartphones this year, but with a per capita income of $1500 most purchases are of budget handsets priced under $150. Apple has 2% of the market for smartphones in the country, but sales rose 56% during the second fiscal quarter. During those three months, Apple announced that iPhone sales overall dropped on a year-over-year basis for the first time in history.

With India becoming an important country for future iPhone growth, Apple hopes that opening its stores in India will increase the visibility of the Apple name.

source: Reuters

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16 Comments

1. justrt

Posts: 446; Member since: Jul 10, 2014

Noooo!

2. Barney_stinson

Posts: 672; Member since: May 30, 2016

Dont let them loot you fellow indians!!!

3. kanagadeepan

Posts: 1260; Member since: Jan 24, 2012

Don't worry.. They will get loss for opening those stores..

4. techspace

Posts: 1037; Member since: Sep 03, 2012

They will make a lot of money from them in the long run.

5. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Not selling $1000 phones though. lol.

7. techspace

Posts: 1037; Member since: Sep 03, 2012

They are overpriced... but do you really think that they won't be able to make profit?

6. xfire99

Posts: 1205; Member since: Mar 14, 2012

Bribing always works. China next!

8. peace247 unregistered

u mad? they have changed the rules for the whole economy, not just for apple.

25. xfire99

Posts: 1205; Member since: Mar 14, 2012

lol? 30% locally siurced = more jobs = economy disaster? First deny, after Cook visit India and suddenly a change in the law? Doesnt ring a bell? China close down Aplle services and losing cases in courts. Apple invest 1 billion in ride-hailing service Didi Chuxing! Soon China will allow Apple services again and Apple can start selling iTunes movies, books bla bla.

9. RoboticEngi

Posts: 1251; Member since: Dec 03, 2014

Ohhhh the hypocrisy won't stop. A country changing its laws, just to sell iphones.....I wonder what Mr. Cock, ups Cook did to get them to sell his crap phone....

10. sukrith2194 unregistered

It wouldn't matter much... With high prices of all apple devices and the availability of these devices at lower costs from other retailers will end in quick closures most probably

12. Mercedes-Benz

Posts: 403; Member since: Jan 18, 2015

Be grateful

13. kiko007

Posts: 7493; Member since: Feb 17, 2016

There's a certain level of ignorance seen here I've never understood. How is a company trying to open it's doors on foreign soil a bad thing? This could bring much needed jobs to a nation in need of more employment options. Not to mention what a company like Apple can do for the image of Urban India. You people are so short sided it's a wonder how you've managed not to starve to death at this point. Such hatred is both ignorant and callous of what could improve a nation in need of better living standards.

16. marorun

Posts: 5029; Member since: Mar 30, 2015

dont change the fact thats they wont sell much 1000$ phone in a country ppl buy 150$ phone.

28. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

While there is a certain level of ignorance involved in the commentary... that's pretty much a standard throughout the whole of the internet. You just have to take it with a grain of salt. But, to answer your question(s) from an opposing viewpoint: 1. Ask the city of Detroit how well it fared against Japanese auto imports. Or, ask China how it fared by letting the British Empire usurp the tea trade. And this will be over the top, but ask Native Americans and Africans how well foreign trade worked out. Now, admittedly those last two are extreme examples, and I'm not advocating sealed borders and cutting international trade... But, trade has to be balanced carefully. If import/export is out of balance, one party will amass significantly more economical influence. And with that comes real power. In the Apple/India case, Apple stands to earn profits off the Indian economy that is then deposited into Apple's accounts held in financial institutions in Europe. That profit is not recirculated back into the Indian economy. "Urban Image" will not maintain an economy. 2. Which jobs? We're talking about retail stores here. With an average income of $1.5K (US) per year, we're not exactly talking about a large amount of Apple stores opening all over the place employing tens of thousands, or even hundreds, of employees. Stores will only be located in the the wealthiest parts of the wealthiest cities. If we'd have been talking about manufacturing jobs, then yes... those jobs could have come into play as a benefit to the Indian economy. But, at least they're sticking to their guns on not allowing to sell refurbished handsets as new just because they're newly shipped to India. Then Apple would have really been reaping the profits. "Refurbished" doesn't really lend itself well to "Urban Image" anyhow. Apple's business plan had been lose-lose for India. You're right about India needing improvements in living standards... how does owning an iPhone do that? "I haven't eaten or bathed in 3 days, but at least this video of flies circling my distended abdomen was -Shot on iPhone-!" India needs real, sustainable, social & economic initiatives - not consumer electronic goods. (Unless they're going to be making them at a decent wage for which Foxconn/Pegatron isn't exactly known for.)

19. darkkjedii

Posts: 31036; Member since: Feb 05, 2011

TechieXP1969, your Bizarro is in here clowning you lol.

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