There are circumstances where companies can get around this rule, this is applies to state of the art technology or cutting edge technology, Apple had applied to use this rule but the India government has turned them down. (NASDAQ:AAPL)’s pricey iPhones. Although Apple’s iPhones are already sold in India, the bulk of the sales are refurbished iPhones and there is room to sell both new and recycled iPhones in India and Apple can be seen aggressively pursuing that opportunity.
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While speaking at Startup Fest Europe in Amsterdam, Apple CEO Tim Cook underscored his company’s interest in healthcare involvement, according to CNBC. While Apple’s iPhone sales in the country have risen considerably in the previous year, it only has a 2% share in India’s fast-growing smartphone market.
Following a presentation by the Cupertino-based electronics manufacturer last month, a committee headed by the DIPP secretary had come to a conclusion that Apple’s products are indeed “cutting-edge” and had recommended that Apple should be given the exemption.
Apple declined to comment on what Cook achieved on his Asia trip.
He met with Indian Prime Minister Narendra Modi on Saturday and discussed, among other topics, “the possibilities of manufacturing and retailing in India”, according to a statement from Modi’s office.
“Apple has to continue retailing in India through a variety of avenues like premium resellers, online retailers and multi-brand stores”, said Shah.
“There is some difference of opinion on whether Apple’s technology is cutting edge”, the official said. He also said their is a very large pool of young talent in India and this youth have very significant skills which Apple would like to explore.
It would be interesting to observe how Apple manages their retail expansion in India, after complying with the 30% procurement rule; and how will Foxconn manufacture iPhones in India, after obeying the same rule. Apple’s proposal to setup official retail stores under the single brand policy has been approved but without any relaxation in local sourcing.
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But Apple’s seemingly growing appetite for alternative emerging markets is making many in China uncomfortable. Foreign retailers face strict regulations in India, as part of efforts to attract manufacturing jobs to the country instead of merely allowing them to sell products in its market. This has resulted in the departure of many companies from China. On Apple’s operating system, Maps is used three times more often than Google Maps.
