Blow for Apple as India sticks to retail rules

AFP, NEW DELHI:  Apple faces a roadblock in its quest to open stores in India after the finance minister decided it must comply with tough local sourcing rules, a report said Wednesday, days after a visit by chief executive Tim Cook.
India will not exempt Apple from regulations stating that foreign single-brand retailers must buy at least 30 per cent of their parts locally if they want to open outlets, the Bloomberg report said.
Apple has no stores in the world’s second-most populous nation, instead selling iPhones through third-party retailers such as Vodafone and Airtel. It makes most of its handsets in China. The Silicon Valley giant had reportedly applied for an exemption that allows firms bringing cutting-edge technology that cannot be easily replicated by Indian manufacturers to sidestep the rules.
“Minister Arun Jaitley decided to support the decision by India’s Foreign Investment Promotion Board that Apple will have to procure 30 per cent of components locally if it wants to sell through its own retail stores,” Bloomberg reported, citing unnamed sources.

Blow for Apple as India sticks to retail rules

AFP, NEW DELHI: Apple faces a roadblock in its quest to open stores in India after the finance minister decided it must comply with tough local sourcing rules, a report said Wednesday, days after a visit by chief executive Tim Cook. India will not exempt Apple from regulations stating that foreign single-brand retailers must buy at least 30 per cent of their parts locally if they want to open outlets, the Bloomberg report said. Apple has no stores in the worlds second-most populous nation, instead selling iPhones through third-party retailers such as Vodafone and Airtel. It makes most of its handsets in China. The Silicon Valley giant had reportedly applied for an exemption that allows firms bringing cutting-edge technology that cannot be easily replicated by Indian manufacturers to sidestep the rules. Minister Arun Jaitley decided to support the decision by Indias Foreign Investment Promotion Board that Apple will have to procure 30 per cent of components locally if it wants to sell through its own retail stores, Bloomberg reported, citing unnamed sources.