India Announces Latest Tax Increase on Imported Smartphones, Including iPhone

[Aniruddh]

I went through this article it talks about more about setting up a manufacturing unit not about the Apple Retail Store. 100% FDI has been approved in certain sectors not all the sectors as far as I know. Yes Apple does wants special treatment and concessions in Tax in setting up a more full scale manufacturing unit here, for which the government have reservations. But as far setting up an Apple Store I really don't understand what is going on behind the scenes even after Tim Cook's frequent visits to India and talks with PM Modi ! This is a typical example of Indian Burecracy which believes in just procrastination !!

100% FDI in single brand retail is approved by the government.

https://economictimes.indiatimes.co...-via-automatic-route/articleshow/62441547.cms

 

[jamisonbaines]

I was looking at today’s budget session, all the hopes and news about getting a tax break was just a fluff piece. But let’s not just single out Apple over here, I believe the finance minister is juggling a lot with this years budget, on one hand it’s most definitely pro poor and it goes hand in hand with the next years elections on the horizon.

It’s always funny to go online and check everyone classifying themselves as middle class in India, when the reality is that huge chunk of the population can barely afford an iPhone. This year a lot of poor families get healthcare, farmers get relif thanks to additional cess being levied upon, and not to forget the reduction in corporate taxes too.

It’s just that I am okay with actual poor people get a lot of benefits this year, but of course it could be just that the shock hasn’t settled in.
Next years iPhone will be more expensive, heck the Mercedes I planned will cost more too, but I don’t think my problems are remotely comparable.

Again, no comments over the political spectrum over there.
BJP sucks, but Congress sucks arse. India has been ***** out of luck in that regard.

Capital Gains on market investments, now that sucks for me downright.

Thanks for sharing this perspective. iPhone X is attractive but I'd be happier with healthcare and an iPhone SE.

 

[augustya]

100% FDI in single brand retail is approved by the government.

https://economictimes.indiatimes.co...-via-automatic-route/articleshow/62441547.cms

You see the way Apple is as a Company, I don't think Apple will cave in so easily to the Indian Governments shrewd and cunning policies, Apple is equally Pricey and will want long term assurances and benefits than what the Indian Government is offering right now. This new move by the Indian Government says and I quote from the Article above that only for the first 5 Years a company can ignore the 30% local procurement of materials but after 5 years they will have to meet the Indian Government condition. I dont think Apple is so friendly to tame down by such enticing propositions, Apple will want to get the best out of the deal if they have to enter into the Indian Market directly.

 

[Ramchi]

You see the way Apple is as a Company, I don't think Apple will cave in so easily to the Indian Governments shrewd and cunning policies, Apple is equally Pricey and will want long term assurances and benefits than what the Indian Government is offering right now. This new move by the Indian Government says and I quote from the Article above that only for the first 5 Years a company can ignore the 30% local procurement of materials but after 5 years they will have to meet the Indian Government condition. I dont think Apple is so friendly to tame down by such enticing propositions, Apple will want to get the best out of the deal if they have to enter into the Indian Market directly.

No Country can afford to make laws suitable for ONE COMPANY, however great that company may be. Just don't work in vocal and vibrant democracies such as India. Which is why they prefer to work with dictatorship regimes.

Sorry, that is something impossible in India...May be rest of the Third-World countries it may be possible.

 

[Aniruddh]

You see the way Apple is as a Company, I don't think Apple will cave in so easily to the Indian Governments shrewd and cunning policies, Apple is equally Pricey and will want long term assurances and benefits than what the Indian Government is offering right now. This new move by the Indian Government says and I quote from the Article above that only for the first 5 Years a company can ignore the 30% local procurement of materials but after 5 years they will have to meet the Indian Government condition. I dont think Apple is so friendly to tame down by such enticing propositions, Apple will want to get the best out of the deal if they have to enter into the Indian Market directly.

That's not a shrewd and cunning policy. Look, everything that Apple does is not sane and everything Apple opposes is not "shrewd and cunning".

Those sourcing norms are there for a reason. This country has a huge population and government is trying make deal with Apple in the lines of "Hey, we have a huge market and in return we need jobs. Let's make a deal."

This deal sounded good to every other company except Apple. Like I said earlier, every other major smartphone brand is manufacturing their flagship phones here.

You can not expect a democratically elected government to amend rules for a specific company and Apple needs to understand that.

 

[augustya]

You can not expect a democratically elected government to amend rules for a specific company and Apple needs to understand that.

But tell me how is that Apple has been successfully able to open stores in almost all parts of the world including a strict and tighter regime as China ! why is that in India only Apple has a problem doing Business. That is also an indication that the Indian Government is giving a hard time to companies like Apple.
[doublepost=1517567984][/doublepost]

Sorry, that is something impossible in India...May be rest of the Third-World countries it may be possible.

Third world countries ?? Apple is a Luxury Brand. And it has Established Business in only some of the Tier-1, developed Countries in the world. All those Countries are third world ?? I think a lot is being blown out of proportion by the Indian government and the media on this by saying, Oh ! well you know ? what we have to give jobs to our local people, is that not a problem with countries in the west or even China, still China allows Apple to do free Business!! So I am saying let the quality and the merit decide that. It is like asking Reservation Quotas for SC/ST/OBC in India. Let the people decide on its own ? people who can afford it will buy it ! who cannot, wont !! For me the Indian Government Policy is just oppressive and also regressive !

 

[Aniruddh]

Two real issues with your response.

But tell me how is that Apple has been successfully able to open stores in almost all parts of the world including a strict and tighter regime as China ! why is that in India only Apple has a problem doing Business. That is also an indication that the Indian Government is giving a hard time to companies like Apple.

Because Apple bows to China.

...is that not a problem with countries in the west or even China, still China allows Apple to do free Business!!

First, Chinese government can do anything they want without having to answer their people.

Second, China does give hard time to Apple. You know it if you are following news recently. Not just Apple, they give hard time to every foreign company.

https://www.cnbc.com/2017/02/02/why-foreign-companies-are-shutting-shop-in-china.html

https://nypost.com/2016/05/17/why-us-companies-have-started-fleeing-china/

You really need to do some research about China.

 

[augustya]

I am saying a lot of times, I just want to keep all the Politics aside and enjoy the comfort and luxury of using a Technological Innovation and Apple is a leading name in that. So quite frankly To hell with the Policies if they make life impossible for Tech Enthusiasts like me !! Seriously !!

 

[Aniruddh]

I am saying a lot of times, I just want to keep all the Politics aside and enjoy the comfort and luxury of using a Technological Innovation and Apple is a leading name in that. So quite frankly To hell with the Policies if they make life impossible for Tech Enthusiasts like me !! Seriously !!

It's easy for you to think like that but not for those who have responsibility to run government. They need to think about each and every expect. Unfortunately, there is an employment problem in our country and government will have to amend their policies to create jobs.

Apple is acting stubborn while each and every other major company is keen explore this market by manufacturing locally.

In my review of iPhone 7 Plus, I have stated how passive Apple is towards India.

 

[5105973]

This is very on point, but there are a few missing details.

Yes and no. Remember Apple's presence in China has nothing to do with the Chinese populace and everything to do with the location and orientation of the people it MUST do business with. It big, they are big, and nobody else is big enough to do the same thing at the same level of consistency. Foxconn and Samsung don't have substitutes... there aren't really any makers of RAM outside China/Taiwan and the more countries Apple have to hop through to make a phone, the more they spend on fuel and logistics moving bits around. Apple has been in China maybe 40 years now and has yet to make a real dent in China, considering the fact that nearly all it's manufacturing is done there.​

Indian culture completely explains that though. India built itself on the back of IT support and has many very computer-literate people. Tech Support call centre staff... Microsoft Certified course passers... Programming and Webdesign make the bulk of it's upper and middle class.

Apple is closed source, designed for people that are beyond enjoying the 'iron workmanship in the Eiffel Tower' and would rather the picture of it at night with the lights as a finished piece. Apple doesn't make sense for them, as it expects a wide range of same-brand devices to actually be beneficial. The added ease of use connecting your iPhone to your AppleTV is made non-beneficial because everyone has free tech support a phone call away from a friend. It's just as hard to have your son/brother/friend setup Miracast on your PC to your Android, even if it might take them a lot longer but save you several hundred.




Be aware that your classing of 'low price' takes on different meaning in India, where Chinaphones with the speed of the new Pixel can be had for $120... and that is high end in a non-contract setting for the middle class consumer. An iPhone X is to most of India as the Gold Plated Apple Watch was to us. Also realise that where Apple chooses to put it's factories is completely independent of where they want to sell. If Modi is trying to lock in Apple (which I think is the opposite of what he is trying to do; if you can afford an iPhone you can afford the price raise.... not the case for cheaper units) he already has. Apple will not pull out of India's 1bn population over a 5 or 10% tax raise.


One does not understand Apple it seems. "Better versions of services or software for X" is exactly what Apple does not do. That is specialization and causes fragmentation, particularly in featureset. It either works for you or it doesn't. Modi doesn't want Manufacturing jobs from Apple. It wants manufacturing jobs from ANYONE and that is the big point.

A few decades ago India was much preferred to China, but the behaviours of companies like Coca Cola should make you realize that Modi doesn't want to give Apple a kiss. Many companies gave Coke a kiss in the form of tax break as they were the Apple of the 90s (the worlds biggest biz) and Coke built factories, ran them until the tax break elapsed then up and left the same day they were done and left the factory on the market for sale.

What Modi wants to do is make any business outside India selling smartphones move to India. I imagine it's because he probably wants to retain some of those intelligent Computer Science grads that keep going to the US on H1-Bs. They could in the near future become key in creating a Silicon Valley within India, or at the very least a MediaTek. Also, the more smartphones in India, the lower the country's needs in the realm of PC tech support, so it's definitely already reducing jobs there.
[doublepost=1517507731][/doublepost]You might only be concerned about having an Apple store, but India would be better off with it's own.... even Motorola, than an Apple Store.

I’m in a rush this morning but got a chance to give your post a quick read—it deserves much more consideration than that. Thank you for taking the time to help me expand my perspective and understanding.