The marriage between Apple and India It could be much more fruitful, were it not for some factors that prevent the Cupertino giant from penetrating the Indian market for good. Some of these problems include, as we have already reported, the company's low sales rate there and the fact that it does not yet have stores in the country.
These problems, however, are not restricted to Apple: the strict Indian government laws make it difficult to increase the expressiveness of a foreign brand in the country, starting with the rule that prevents foreign capital companies from settling in if they do not produce. 30% of your products locally.
In the case of Apple, this has always been the big factor blocking the company from building its first retail store there, where there are only authorized dealers and service centers. However, a statement from India's finance minister, Nirmala Sitharaman, may bring new hope to Ma, as reported by San Francisco Chronicle.
Sitharaman announced yesterday (4/7) that India will relax the laws on the presence of foreign brand stores in the region. This way, these companies (Apple included) could be exempt from the need to manufacture 30% of their products in India as long as they applied more than $ 200 million in foreign direct investment (FDI).
These companies will certainly have to reconsider their strategy to harness the great potential of Indian consumption. Now it would be a race for all these retail companies to evaluate the conditions and make a quick decision to invest in India.
For Ma, investing that amount in the country will not be so difficult: with its App Accelerator and the construction of one (or more) Apple Stores, the company could reach the minimum FDI to settle in India, and from that, further increase its expressiveness in the region.
Wistron, Ma's supplier, currently manufactures some models of iPhones in India to try to lower the cost of the device per wool; However, we have commented in recent months that other Apple partners are also more than willing to bring their factories to India, such as Foxconn and Pegatron.
via Cult of Mac