Apple Stores in India: Relaxation for local sourcing

SrkOnline

SrkOnline

Disciple
Finally, Apple Stores will be opened in India soon. Though this is a good news for fans, the way in which Apple has claimed relaxation for local sourcing of materials is questionable. (Foreign companies selling products in India must purchase 30 percent of their components from local businesses if they wish to open up retail stores.) Now, Apple bypassed the rule.

As per http://9to5mac.com/2016/06/20/apple-stores-india-decision/,
Apple will likely be allowed to avoid sourcing products locally for eight years – three years as per the new norms and an additional five years if it can prove it deals in ‘state-of-the-art’ and ‘cutting-edge’ technology that’s unavailable in the country.

Do you believe in Apple's claim that their products have cutting edge technology for which raw materials cannot be sourced locally (within India)?
 
SrkOnline said:
Finally, Apple Stores will be opened in India soon. Though this is a good news for fans, the way in which Apple has claimed relaxation for local sourcing of materials is questionable. (Foreign companies selling products in India must purchase 30 percent of their components from local businesses if they wish to open up retail stores.) Now, Apple bypassed the rule.

As per http://9to5mac.com/2016/06/20/apple-stores-india-decision/,
Apple will likely be allowed to avoid sourcing products locally for eight years – three years as per the new norms and an additional five years if it can prove it deals in ‘state-of-the-art’ and ‘cutting-edge’ technology that’s unavailable in the country.

Do you believe in Apple's claim that their products have cutting edge technology for which raw materials cannot be sourced locally (within India)?
Click to expand...

You are asking a wrong question, Indian Govt. has already rejected the Apple claims of cutting edge technology after the last Tim Cook visit, Apple will be eligible for 3 year exemption/time limit to source locally just like any other company after the new FDI rules.
 
Not just Apple, I think there should be relaxations for many tech/other niche companies where their products are sold through 3rd party retailers anyway. This way, at least the consumers would be happy getting better service.
 
sabby said:
Not just Apple, I think there should be relaxations for many tech/other niche companies where their products are sold through 3rd party retailers anyway. This way, at least the consumers would be happy getting better service.
Click to expand...

Well, the rules are same for every company besides someone like Samsung don't even need these new FDI rules as they already have factories in India.
 
RS4 said:
You are asking a wrong question, Indian Govt. has already rejected the Apple claims of cutting edge technology after the last Tim Cook visit, Apple will be eligible for 3 year exemption/time limit to source locally just like any other company after the new FDI rules.
Click to expand...

Yes. You are right. Indian gov't has rejected initially. My point is whether there is any truth in what Apple says about cutting edge technology.
As per news reports, Apple is likely to get additional give years exemption because of this claim. I think Apple is trying to use exemptions in the law for its benefit.
 
SrkOnline said:
Yes. You are right. Indian gov't has rejected initially. My point is whether there is any truth in what Apple says about cutting edge technology.
As per news reports, Apple is likely to get additional give years exemption because of this claim. I think Apple is trying to use exemptions in the law for its benefit.
Click to expand...
Falling Share valuation, falling sales first time since launch of iPhone, seems like
EDGE (S7) has been cutting Apple badly, unless they literally bring something original & innovative instead of biased rehash of other's technologies; cutting from Edge seems to continue.

As far as Apple iPhone is considered they should be dealt similar to other manufacturers, nothing cutting edge about their technology, its their own continued reality distortion field which they want Indian government to believe .
 
I agree with the view that nothing that now Apple brings is revolutionary - most of it is recycled stuff, in a new avatar, and by the force of its huge numbers in the market, it ensures these are standardised, to a greater extent. Earlier, it was a different time.

Apple should within

year 1 - start ensuring that they starting using local packing materials for the boxes and etc. and assembly.

Year 2 - should start ensuring that the accessories are indian made {chargers,

Year 3 - start producing in India, partly.

and so on.

I honestly think 30% is a good figure. Whatever Apple claims about tight supply chain and other stuff - other companies do localised sourcing as well.

Secondly, it gives a good initiative for Apple to look away from China. China has its own issues, and their valuations and other things will cause problem, maybe.
 
RS4 said:
Well, the rules are same for every company besides someone like Samsung don't even need these new FDI rules as they already have factories in India.
Click to expand...
I think you may be confusing FDI with make in India. Even if Samsung have had their factories in India, they (as in Samsung Korea) couldn't own more than 49% of those due to FDI rule. Our local business babus took advantage of those rules in all sectors and unlike high tech industries, qualities were compromised and margins were dearer in many products. Protecting our own businessmen is a noble notion, but its been done for far too long and as a result, product quality, pricing (lack of competition) and service have been quite bad for many things.

As for the political leaders crying that this will cut down jobs, well its not like Foreign companies will bring all their employees from outside.
Anyway, I'll stop going more off topic. I think Apple Stores in India would be good for consumers as they'll at least get that legendary Apple Service for the huge price they pay for the devices in India. I hope this results in other companies as well opening their own outlets - better service + more jobs.
 
sabby said:
I think Apple Stores in India would be good for consumers as they'll at least get that legendary Apple Service for the huge price they pay for the devices in India.
Click to expand...
This s what the whole point is for an end user. I am happy for all the Apple users for getting a chance to exchange the phone for free in case of a diagnosed issue, Apple + protection, International warranty and may be the upgrade policy to exchange the old version for a new one
 
sabby said:
I think you may be confusing FDI with make in India. Even if Samsung have had their factories in India, they (as in Samsung Korea) couldn't own more than 49% of those due to FDI rule. Our local business babus took advantage of those rules in all sectors and unlike high tech industries, qualities were compromised and margins were dearer in many products. Protecting our own businessmen is a noble notion, but its been done for far too long and as a result, product quality, pricing (lack of competition) and service have been quite bad for many things.

As for the political leaders crying that this will cut down jobs, well its not like Foreign companies will bring all their employees from outside.
Anyway, I'll stop going more off topic. I think Apple Stores in India would be good for consumers as they'll at least get that legendary Apple Service for the huge price they pay for the devices in India. I hope this results in other companies as well opening their own outlets - better service + more jobs.
Click to expand...

Nope i am not confusing anything, the FDI rules and Make in India are interlinked tactics, why do you thing all these reforms are being carried out by the Government? To increase local production and make "make in India" a successful program, the 30% local sourcing rule still stays only with 3 years time given to get the local factories up and running.

Now, the Samsung India point, it does not matter for Samsung if it owns 49% or 25% or 0%, they can outsource the production to a third party if they want and still meet the 30% local sourcing Law as you need to source 30% of goods by value from within India and that does not mean you have to do that yourself, can place an order with foxconn Andhra factory just like Xiaomi etc.

Finally the post which i answered to was: " Not just Apple, I think there should be relaxations for many tech/other niche companies where their products are sold through 3rd party retailers anyway. This way, at least the consumers would be happy getting better service."

To which i i clearly replied that the rules are same for all the companies, be it Apple or Ikea or Samsung or Xiaomi.
 
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