Apple Stock News
A few days ago Apple confronted a legal barrier in India when wanting to open three Apple Store locations which didn’t follow the legal rules from the finance ministry in India which say that Apple must sell locally sourced goods if it wants to open stores in the country as reported by Reuters.
India finance ministry requires from any foreign company to manufacture at least 30% of the products sold in-house in India, this requirement Apple doesn’t meet as clearly a very large portion of their production is manufactured in China. Until last year there was an exemption for some retailers selling state-of-the-art-goods, today we don’t see this exemption saving Apple yet from getting the ok from the Indian government to cooperate with the opening of the Apple Stores.
Apple was expected to receive an exemption from the rule by having a recommendation from the Industrial Policy and Promotion department but the ministry of finance doesn’t think that Apple falls into this category of cutting-edge technology and they must comply with the rules of locally sourced goods to be able to open their stores.
“They did ask for a waiver but didn’t provide any material on record to justify it. The decision was taken only after a thorough examination of their application,” the source said.
The waiver is available only for investment in “state of the art” or “cutting-edge technology”, he added.
Without being able to open their own retail stores in India, Apple will have to be satisfied with selling their diverse line of products through third party distributors in India. Apple is thirsty to expand to the India market after seeing last quarter’s 56% growth worth more than a billion dollars.
The company will have to approach the Indian government in a more personal way to be able to work with them the way they want to.