Apple reportedly plans to open its own stores in India, but the country's current regulations are not on its side.
India requires companies to source as much as 30 percent of their components from Indian companies, which makes things quite difficult for Apple. In a bid to open Apple Stores in the country, the Cupertino iMaker has reportedly requested the Indian government to loosen its restrictions in this regards.
According to a new report from 9to5Mac citing the Business Standard, Apple executives met with Indian officials to discuss the issue.
"They (Apple) have clearly told us that they cannot adhere to the sourcing norms as they hardly use any hardware for their products. We have also told them that while the government is keen on investments, it cannot make exceptions. However, we can analyse a company's needs on a case by case basis," a senior DIPP official reportedly told the Business Standard. DIPP is the department responsible for controlling Indian foreign investment policies.
In other words, Apple reportedly argued that iOS devices simply do not have enough internal hardware to source 30 percent from Indian companies. At the same time, the company is most likely unwilling to change its manufacturing processes for a single region.
Apple has its own stores in several regions worldwide, and the company is constantly looking to expand its retail presence as much as possible. Back in October 2013, the Economic Times (ET) reported that Apple executives in India had laid out plans to open 100 standalone stores.
"Apple wants to set up 100 exclusive standalone stores under the franchisee model in smaller markets," the ET reported at the time. "It's scouting for franchise partners and has made proposals to some of the multi-brand retail chains, the executives said. Apple has not set any deadline for setting up these stores in smaller towns in India, but is looking to roll them out this fiscal year."
If the Indian government is not willing to loosen its restrictions, however, Apple will not be able to open its own stores legally in the country. Apple is currently selling devices in India through a reseller program, but it has no first-party retail presence.
