Despite disappointing earnings in other parts of the world, India is doing great for Apple right now — with iPhone sales up 56 percent over the past quarter, without Apple even having a brick-and-mortar retail store in the region.
Things may be about to get even better, however, as Apple’s plans to open Apple Stores in India have taken a leap forward as the country’s Department of Industrial Policy and Promotion (DIPP) has recommended Apple be exempt from laws stating that foreign single-brand retailers must source at least 30 percent of their products locally.
Despite the possibility that Apple manufacturers Foxconn and Pegatron may open factories in India, currently Apple does not meet the usual requirements to be able to open an own-brand store in the country. Therefore, DIPP’s recommendation that Apple be exempt is highly significant.
Right now Apple sells its devices in India exclusively through premium resellers operating on a franchise model, although it has previously stated its desire to open a series of brick-and-mortar Apple Stores — including a major flagship store reminiscent of Apple’s Fifth Avenue glass cube retail store in New York City.
The news that Apple is one step closer to opening official Apple Stores in India couldn’t come at a better time.
Despite Tim Cook insisting that China is the company’s future biggest market, the relationship between Apple and the Chinese government has been increasingly strained as of late. Recently China forced Apple to shut down the iBook Store and iTunes Movies in the country, while a leading expert on global political risks for corporations has suggested that China might work to block Apple’s advance over the next five years: something it has already proven willing to do as a way of favoring local brands.
India isn’t without its own demands for Apple (for instance, all iPhones sold from 2017 must feature a panic button not currently existing in iOS software). However, those demands pale in comparison to those currently being levied by the Chinese government. Who knows? India could wind up being the prime beneficiary of China’s attempts to stifle Apple.
Source: Economic Times
