Apple's India plans have bureaucratic hurdles

Apple's India plans have bureaucratic hurdles

Summary: Well, on the bright side, Apple did have plans for expansion in India.

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TOPICS: Apple, India
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“I love India but I believe Apple has some higher potential in the intermediate time in some other countries. We have a business there and the business is growing, but the sort of the multilayer distribution there really adds to the cost of getting products to market.”--Tim Cook

At Apple's last quarterly earnings call, Tim Cook irked several Indian technology enthusiasts when he said India wasn't on Apple's exapnsion list. At the time Cook did not reveal anything beyond what he said above. However, as it turns out, the India's laws might have something to do with Cook's remarks.

In a recently passed decision, the Indian government has allowed Foreign Direct Investment (FDI) in the retail sector. The decision is seeing quite a bit of political friction and the fine print seems to be a dampner on a lot of enthusiasm. Amazon India has to work around a certain rule to setup operations in India, Apple has a different problem.

In a report for The Economic Times, Writankar Mukherjee & Chaitali Chakravarty say Apple does have plans to open their own stores in India. While Apple declined to comment on the report, India's new FDI in Retail policy might make this difficult for the company. Under the rules, for a foreign retailer 30% supply needs to be sourced locally. Apple India's current problem is selling their product through a reseller network; if the company wants to fix this by opening their own stores, they face another roadblock--that of having local inventory. A solution for Apple to consider might be procuring accessories made in India.

Maybe India isn't that business friendly afterall.

Topics: Apple, India

Manan Kakkar

About Manan Kakkar

Telecommunication engineer with a keen interest in end-user technology and a News junkie, I share my thoughts while preparing for my Master's in Information Management.

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8 comments
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  • I wonder does having a Call center in Bangalore

    Or having all of your products Manufactured in Indian slave factories count? If so Microsoft/Nokia have a leg up in that country.
    Troll Hunter J
    • Yak Yak Yak

      Funny, one day you're all for slave labor cause you say it gets you what you want cheap, the next day you'll post fake indignation so that you can take a dig at MS?

      You have some serious mental issues going on, I would honestly seek some professional help.

      Even your screen name lies about your intentions, Troll Hunter Fake.
      William Farrel
      • Then by all means

        Seek professional help. I hve never claimed to be for slave labor, that would be you using one of your many Screen names Matt/todd/Will/etc.
        Troll Hunter J
    • I always love how capitalism

      is blamed for socialism's failings. India is hardly a capitalist nation.
      baggins_z
    • Do you have any proof

      That any Nokia or Microsoft product is made in an "Indian slave factory"?
      athynz
      • Nokia phones are designed by Foxconn

        In China, and built in Foxconn's plant located at No 2 A 1 Phase III, Sipcot Industrial Estate, Chennai To Bangalore Road, Sriperumpudur, Tiruvallur - 602105 the one that makes the Lumia phones for Nokia. It's long been known that Microsoft shipped all it's call centers to India, that's just a Fact
        Troll Hunter J
  • Apple to expand in India?

    Accruing products sourced in India on the face of it seems to suggest thats OK for Apple's expansion but still lots of questions need to be asked by the Indian gvt to protect its pple from 'slavelabour'

    http://www.ghusu.com/top-10-features-of-the-new-iphone5/
    roots_mann
  • Not business friendly? Really?

    So, if China and the US use predatory & protectionist behaviour, it's OK, but when India strives for some kind of balance - it's not helpful? Singh's track record seems to be at odds with this suggestion.

    Have a good hard look at how "unfree" America's & China's trade arrangements are - yes, even the so-called "free" ones. They are free only in the sense of free to take advantage.
    baljeetd