Apple Not Able to Open Retail Stores in India Without Selling 30% Locally Sourced Goods

[MacRumors]

Apple's plan to open three Apple Store locations in India may fall through following a ruling from the Indian finance ministry that says Apple must sell locally sourced goods if it wants to open stores in the country, reports Reuters.

In India, 30 percent of goods sold by foreign companies must be manufactured or produced in the country, a requirement Apple does not meet as its products are largely made in China. India last year exempted retailers selling state-of-the-art goods from the rule, prompting Apple to file a new application with the Indian government.

Apple was expected to receive an exemption from the rule, earning a recommendation from country's Department of Industrial Policy and Promotion, but the ministry of finance has decided Apple's products do not fall into the cutting-edge technology category. A source told Reuters Apple did not provide enough material to justify the exemption.

"They did ask for a waiver but didn't provide any material on record to justify it. The decision was taken only after a thorough examination of their application," the source said.

The waiver is available only for investment in "state of the art" or "cutting-edge technology", he added.

Without the ability to open its own retail stores in the country, Apple will need to continue selling iOS and Mac devices in India through third-party distributors. Apple is eager to expand its business in India as it is a largely untapped market. Last quarter, Apple saw its revenue from India grow 56 percent, surpassing $1 billion.

The ministry of finance's ruling comes just after Tim Cook spent several days in India, where he met with Prime Minister Narendra Modi and other local business leaders, actors, politicians, and developers.

Apple has also announced the launch of a Maps development center in Hyderabad and an iOS app and design accelerator in Bangalore.

Article Link: Apple Not Able to Open Retail Stores in India Without Selling 30% Locally Sourced Goods

 

[Michaelgtrusa]

Apple will have to meet the mark if they want to play.

 

[discounteggroll]

but the ministry of finance has decided Apple's products do not fall into the cutting-edge technology category

if that isn't a slap in the face, I don't know what is

 

[smacrumon]

India really is putting Apple under the pump. Good on India for trying to negotiate a deal that suits their country's own objectives instead of simply accepting another corporation setting up shop, using the workers only to then move on with little benefit to the country. Play hard ball, India.

 

[Dilster3k]

That's just savage, props to them for sticking by their rules.

but the ministry of finance has decided Apple's products do not fall into the cutting-edge technology category.

REKT.

 

[Z400Racer37]

Because Fascists know best... God they create so much value, what would we ever do without them... #RegulationFTW

 

[brendu]

These kind of politics are why I would never want to be CEO of a major multinational company.

 

[Z400Racer37]

India really is putting Apple under the pump. Good on India for trying to negotiate a deal that suits their country's own objectives.

BS. If their people want to buy Apple products, there is no moral case to be made to deny it to them by the guns of an oppressive government.

Trump would love this dump.

 

[redheeler]

but the ministry of finance has decided Apple's products do not fall into the cutting-edge technology category

16 GB base storage on iPhones, lack of 4K support on Apple TV, and a Mac Pro that hasn't been updated since 2013. I wouldn't call that cutting-edge either to be honest.

 

[cmd_Spacebar]

Data Center? Solar Farm?

They sell a service. iCloud could be hosted there?

 

[usarioclave]

"The waiver is available only for investment in "state of the art" or "cutting-edge technology", he added."

Looks like someone forgot to do the needful to the right person. Bummer.

It's hard to tell what cutting edge in India means. Running water and toilets? Air conditioning?

 

[deadandalive]

If they want to be douchebags then Apple should too and cancel the Maps Development Center.

 

[American Hero]

but the ministry of finance has decided Apple's products do not fall into the cutting-edge technology category.

Well, that opens the door for Samsung and Google to open stores in the country. Sorry Apple.

 

[smacrumon]

BS. If their people want to buy Apple products, there is no moral case to be made to deny it to them by the guns of an oppressive government.

Trump would love this dump.

The people of India can already buy Apple products from third-party distributors in India.

 

[WordMasterRice]

BS. If their people want to buy Apple products, there is no moral case to be made to deny it to them by the guns of an oppressive government.

Trump would love this dump.

They aren't denying them Apple products, they are denying the Apple store.

 

[hiddenmarkov]

So...the jobs weren't enough then I gather?

Odd question maybe, why does apple want to skip 3rd party stores so bad here? And not in say South Korea where they seem to have no issues staying 3rd party. Korea only has 3rd party stores. IIRC its apple policy making that not happen. For odd reasons they won't open a store there.

Based 3rd party stores I saw like Frisbee...if apple gave in a little an apple store or 2 might do very well there.

 

[samcraig]

But when Apple plays hardball, companies and governments should bow down, right?

 

[HobeSoundDarryl]

Can you imagine if the most desirable country in which to market anything had such laws?

But yes, much better to drive that country's masses to compete in the "cheapest labor" race. That will certainly end well. Let them eat cake.

 

[GreyOS]

Tim's trip to India didn't pay off then, lol.

 

[Rogifan]

India really is putting Apple under the pump. Good on India for trying to negotiate a deal that suits their country's own objectives instead of simply accepting another corporation setting up shop, using the workers only to then move on with little benefit to the country. Play hard ball, India.

What objectives does it suit? Certainly those of the people.

But when Apple plays hardball, companies and governments should bow down, right?

Said no one ever.

 

[Crosscreek]

Make some high tech Watch bands there and that should cover it. :-o

 

[Zirel]

Apple will have to meet the mark if they want to play.

Or just pay out the lobbies to kill the problem.

 

[Johnny907]

the ministry of finance has decided Apple's products do not fall into the cutting-edge technology category.

BURN!

Wonder who threw the bigger fit over this: Cook or Ive.

 

[HobeSoundDarryl]

But when Apple plays hardball, companies and governments should bow down, right?

Apple is above governments, laws, etc. I can't even grasp why the world isn't just sending all money made by individuals, corporations and governments directly to Apple. Why is this planet still called something other than Apple's World? And so on.

 

[macduke]

but the ministry of finance has decided Apple's products do not fall into the cutting-edge technology category.

It's probably that ancient 5400rpm mechanical hard drive technology in the iMac that did them in, lol. That or the last Mac Mini update regression.