There is still hope for Apple to open retail stores in India

After Apple's application to open retail stores in India was denied by the Indian government, it turns out the company might still get the chance to sell its devices at its own retail stores in the country. Currently, this is not allowed under Indian legislation, as it obligates foreign companies to sell at least 30 percent locally-sourced goods in order to be allowed to open retail stores in the country. Last year saw a minor amendment in the law, exempting foreign high-tech manufacturers from the rule, provided they submit a special application for a waiver, backed by a sufficient body of reasons, but Apple's request was turned down.

Now, according to an anonymous sources talking to the Times of India (TOI), the government might grant Apple a grace period of two to three years, in order to give the company a chance to comply with the local legislation, during which time Apple will be permitted to sell products in its own retail stores. According to the sources, exempting Apple from the sourcing clause for a few years would give it time to begin partnerships with local vendors. Eventually, Apple will be expected to look at the option of manufacturing in India and to begin sourcing some components locally. TOI's sources also claim that Apple has begun buying chargers from the country and is already exporting them.

The Indian Ministry of Finance has argued that the mandatory “30 percent rule” for locally-sourced goods is needed for creating more jobs in the country. India is becoming one of the biggest foreign smartphone markets and tech comanies are striving more and more to expand their presence over there. Apple is no exception and its CEO Tim Cook recently met up with India's Prime Minister Narendra Modi to discuss Apple's future in the country.

Source: Times of India via SlashGear

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15 Comments

1. Ezio2710

Posts: 548; Member since: Aug 22, 2015

if apple care about profit ,forget india. if they really care about market share, they must consider pricing policy. because price determines the market share in india like countries.

2. RajRicardo

Posts: 495; Member since: Feb 28, 2014

You do know apple recorded a 50+ percent growth in India when all other countries showed a downturn? Also those iPhones apple sold in India aren't cheap either. Indians pay 40-55% more premium for an unlocked iPhone compared to US consumers who mostly rely on carrier subsidies.

4. Ezio2710

Posts: 548; Member since: Aug 22, 2015

that 50+ % from iphone 5s 16gb which is priced at 20k for 3 year old device. I'm talking about majorities

5. sukrith2194 unregistered

Also because of the old iPhone 4S, 4, 5 being sold for under 15K

7. sgodsell

Posts: 7365; Member since: Mar 16, 2013

You do know that a 50% growth from almost nothing, means almost nothing, right.

12. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

50% growth based on how many people? After all, if you had only 300,000 people in India with an iPhone, 50% growth would only bring that to 600,000. So that actually isn't saying much. Especially considering several OEM already sell product in very high quantities in India. Feature-phones are still the biggest sellers do to pricing. According to this article -http://www.androidcentral.com/samsung-micromax-and-intex-lead-indian-smartphone-market-idc, Samsung is the only leading outside with the other 2 companies being locals it appears. According to the article, smartphone growth was only 5M units more in shipping vs same quarter 2014. Out of 5M extra shipped units, how many you think were from Apple? I can say with affirmation, it probably was 1/5th of that. Price? Based on India's largest carrier AirTel, you can get a Samsung Galaxy S6 Edge+ for what is equal to $808USD or $53,900 Rupees. The iPhone is so expensive, it doesn't even show the price. But I already know, its over $1000 in India. Now consider, that same Galaxy S6 Edge+ in the USA is still roughly $550 - $600 depending if its unlocked or which carriers its for. Consider that only a $200 difference while the iPhone exceeds a $300-400 difference or more depending on storage. Opening a store in India isn't goign to help Apple is locals can't afford them. There are many that can, but lots can't. You figure in the USA with 350M residents, more than 50% of the population can afford any phone sold here. While in India out of which has 1.2B citizens, yet only 22% have a smartphone as of 2014 -http://www.statista.com/statistics/257048/smartphone-user-penetration-in-india/ Samsung already has a larger market-share in India with 23%. Samsung actually offers cheap phones. I just don't think Apple can compete with many of the models being sold there. Especially not with the J series, which is a very good phone for what it costs. Apple selling older phones is the only thing selling in India. I mean remember the brought back the iPhone 4 just for India. How lame when you can get a Galaxy J7 for less and it still does and have more, including much better specs, and better software.

3. SIGPRO

Posts: 2817; Member since: Oct 03, 2012

Apple just can't take NO for an anwser!

13. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Well that's what negotiations are for. However, I dont care if Apple sells in India or not. The reality is though, Apple can't compete in sales with new models vs other options. Xiaomi, Samsung and even Microsoft have better sale sin India vs Apple, do to the fact they make some very good phones vs what Apple is selling in India, which is most the iPhone 4's and 5's because they are cheap now. The iPhone 5S on Amazon India is roughly $314USD The iPhone 6 is about $560USD The iPhone 6S is $718USD The iPhone 6S Plus is $1154 Yet the Galaxy J7 2016 which has slightly better hardware vs the iPhone 6S, and a 5.5" Super AMOLED display is only $213USD. Which one you think the locals are going to buy? No matter how much they may want an iPhone, it isn't goign to happen. Unless Apple can sell a brand new iPhone (not an older model) for less than $300, they aren't going to beat Xiaomi or Samsung who both offer phones that are better for less than $300USD. The average income in India is $10-50 per day. That at max $1500. After rent, food, transportation, clothes, kids and more...there is no room for a $1000 phone.

6. mahima

Posts: 729; Member since: Nov 20, 2014

i don't understand why people buy iphone especially in India. people i know around buy 5s and 4s just because its iphone. There are much better deals in android at the same price. I get it if they buy 6 or 6s... but 4s and 5s are just ridiculous as they are old device and the only thing okay is its camera for 5s

8. Ezio2710

Posts: 548; Member since: Aug 22, 2015

To show the appl logo while holding the phone. Apple is rich company, if you hold apple iphone in your hand means you are rich

15. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Yes, that is true in many countries. My wife is from the Philippines and having an iPhone people say you are rich because an iPhone is equal to 2 months+ of income without bills to pay. I remember when me and my wife sent out iPad 2's to her family. She gave hers to her sister and I gave mine to her kid, OMG I thought they were gonna have a heart attack when they opened the box. Last year I sent my HP Envy which was pretty good consider it was an i7 Sandy Bridge with 1TB HDD and Dedicated Nvidia and Intel GPU's. I still have the video of him taking it out the box. Everyone was like WOW! People overseas think it is a huge deal to have fancy American products from well known brands like Apple, Dell, HP and others. I can't wait for this XMAS to send more stuff. Will likely send my iPad Pro, it sucks anyways.

14. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

There are actually better deals at a lesser price.

9. anup807

Posts: 12; Member since: Jan 13, 2015

Its like a Mercedes is selling a car at the price of Maruti. It's more about the brand than the product. that's people are buying iPhone 4s, 5s..

10. peace247 unregistered

ohh please... Mercedes it at a different level compared to Maruti.... unlike apple

11. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Make them get the local vendor first. Make sure they secure those deals first. Don;t let them do anything. Don't exempt them from anything. Sounds like Apple is bargaining with money. If no exemption was given to anyone else, then Apple shouldn't be exempt. Everyone should follow the rules equally. How amazing that last year which is roughly when Apple first talked to India, they past some law to allow tech companies to be exempt. That's BS. Because Dell and Hp who both have workers in India, did not get any exemption. They had to secure the 30% of local vendors/factories to make components and parts before they could sell/produce any goods in India. Apple should have to do the same. When you have billions, it doesn't take 2 or 3 years to secure such.

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