Apple To Open Flagship Stores In India!
The Indian Finance Minister, Arun Jaitley, has recently agreed to a proposal that elucidates how Apple Inc. could now open stores in the fast-growing Indian economy without primarily sourcing its components locally. He has sanctioned an offer not to be identified that gives the IT ministry the power to tag a vendor of a single brand as a benefactor of a pioneering technology. It is because such a federation would give Apple a three-year indemnity from rules that enforce some foreign traders to acquire 30% of machinery in India. Apple manufactures most of its goods in China.
Tim Cook, CEO of Apple, is trying to make profits from growth prospects in the $2 trillion Indian economy that consists of 1.3 billion people, where usage of smartphone is mushrooming like nowhere else. However, Apple’s market share contenders are selling cut-rate devices. A devious establishment and a set of intricate rules continue to pose themselves as challenges for many local and overseas companies struggling to match up with India’s prospective. In the first half of this year, Apple was planning on opening physical stores in India, but then, it decided to hold off its plans unless it was discharged from having to source 30% of the goods it has sold in the country. Apple has flagship stores operating in New York, Shanghai and Tokyo whereas in India, it operates through two key distributors – Redington and Ingram. These two distributors then stream the products to regional merchants, multi-product trade channels and Apple Authorized Re-seller outlets.
California-based manufacturer of iPads and iPhones, The Cupertino, could apply again to open stores in India with chances of engaging in a contract because of the latest decision. The decision was previously rejected after the finance ministry vacillated from taking a call on whether Apple products are cutting edge or not. However, the newest decision could clear up that confusion. The company can now open its stores hassle-free and is planning to set up 10, 000 sq. ft. stores across major cities like Mumbai, Bangalore and Delhi by the end of 2017. If it decides to do so, it is likely for Apple to be allowed to circumvent sourcing products locally for eight years – three years as per the new customs and an additional five years if it can substantiate its deals as ‘cutting-edge’ technology and ‘state-of- the-art’. At present, Apple operates in India through authorized re-sellers outlets, most of which have been considered futile in providing a reliable high-quality shopping experience.
Picture courtesy – tnwcdn.com
by techtalks @TechTalks August 23, 2016 5:13 AM UTC