Apple had been deliberating to bring its own retail stores in India but the local sourcing norm has been preventing this from happening. According to the local sourcing norms, 30% of the goods need to be manufactured in India and only then the company would be able to independently operate the retail stores in the country.
A recent recommendation from the government panel headed by Secretary of Department of Industrial Policy has suggested exempting Apple from the law. If this recommendation makes it through a committee then Apple would be able to setup independent stores across the country.
Apple has been trying to get the licence from quite some time and it was only this year that the Cupertino company had filed a proposal with the authorities along with the necessary amends. Apple is citing the reason that its products are cutting edge and thus should be exempted from mandatory local sourcing norms.
At this juncture the it is just a recommendation and it still requires a nod from the Finance ministry, which in spite of allowing 100 percent FDI in single brand retail needs the company to take FIFB permission in case the limit goes beyond 49 percent. While at the outset this might look like a great move but it is the distributors like Redington and Ingram Micro who will take the blow.
Lately Apple has been bullish when it comes to the Indian market where it commands a minor share of 2.4%. Apple’s much controversial move to introduce refurbished handsets in India is also picking steam. The sad part however is that Apple’s iPhone SE was a miss and hit exercise with the abnormally high price tag in India. On a related note It is only fair that we also mention the recent incentive for corporate users which seems to be a move to bring first time Apple users on board.