India is planning to push through Apple's application to set up retail stores in the country, reports Bloomberg. The company is currently resubmitting its application as it wasn't in the right format, said a source.
Apple should qualify as a provider of cutting-edge technology, the person said. That would exempt the maker of iPhones and iPads from a rule forcing foreign businesses that retail a single brand in India to procure 30 percent of a product’s inputs locally. The company makes most of its devices in China.
While the country of 1.3 billion people represents a big opportunity for Apple, it's also challenging as many can't afford Apple's high-end products. Currently Apple has just 2% of India's smartphone market. Back in December, it dropped the price of the iPhone 6s and iPhone 6s Plus in India by up to 16%. Additionally, Apple slashed the price of the iPhone 5s bringing it down to almost half of its original price.
Currently, Apple uses resellers in India for its products. Opening its own stores would not only help Apple increase sales but also promote the brand.
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Apple should qualify as a provider of cutting-edge technology, the person said. That would exempt the maker of iPhones and iPads from a rule forcing foreign businesses that retail a single brand in India to procure 30 percent of a product’s inputs locally. The company makes most of its devices in China.
While the country of 1.3 billion people represents a big opportunity for Apple, it's also challenging as many can't afford Apple's high-end products. Currently Apple has just 2% of India's smartphone market. Back in December, it dropped the price of the iPhone 6s and iPhone 6s Plus in India by up to 16%. Additionally, Apple slashed the price of the iPhone 5s bringing it down to almost half of its original price.
Currently, Apple uses resellers in India for its products. Opening its own stores would not only help Apple increase sales but also promote the brand.
Read More