They could sell local apples, maybe?
Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
11–20 of 115 posts
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#12> Apple was expected to receive an exemption from the rule, earning a recommendation from country's Department of Industrial Policy and Promotion, but the ministry of finance has decided Apple's products do not fall into the cutting-edge technology category. A source told Reuters Apple did not provide enough material to justify the exemption. So did Apple just submit a crappy application? Or is the ministry not follo…
How do Apple's products qualify as "cutting-edge technology"? Or, phrased differently, would Samsung also qualify? HTC? LG? What differentiates "cutting-edge" from "just another widget" in the consumer electronics sector?
I read "cutting edge technology" as "computers, phones, and other sophisticated electronics." It would be helpful if the article mentioned if the Indian government provides a concrete definition.
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#13Before people get out their pitchforks.
These laws in India are a direct result of 200 years of British 'free' trade. Imagine the amount of damage something like NAFTA has done to the american working class - multiply that with 200 years.
While america was in its infancy - before it industrialized - it too used protectionism as a way to allow its local industries to grow, how is it bad if India is trying to do the same thing ?
The indian unemployment/underemployment problem will laugh at the face of the European/American moaning about jobs. Just to give you an interesting statistic - 85% of student loans in India is under water ( compared to 50% in america ).
There was this interesting story of engineers in India accepting jobs as pions ( gaurds/watchmen ) for a miserable 200 dollars salary a month. Could you imagine yourself in that position ? So I do not fault the govt for these laws or else there will be serious civilian unrest.
Indian markets, products and the economy in general is really bad and unsophisticated. There is no way they can compete with american, European and Chinese companies.
Of'course some bureaucrats within the Indian Govt uses this as a way to extract wealth from foreign companies who want to set up shop in India. But that is a corruption problem rather than an argument against the law. Even simple law in India is hard to enforce due to corruption, the reward greatly outweighs the risk.
Hopefully things will improve in India.
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#14What's 30%?
30% of sales by unit, sales by price, items for sale, floor space? Or something else?
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#15Earlier quoted context omitted.
How do Apple's products qualify as "cutting-edge technology"? Or, phrased differently, would Samsung also qualify? HTC? LG? What differentiates "cutting-edge" from "just another widget" in the consumer electronics sector?
I assume the law is for products that can not be produced at all in India. There is nothing Apple does in China that it can't do in India. All the really high tech components come from Korea, Taiwan, etc. Free trade aside this is a smart move for India: Apple has saturated the markets in the west and needs Asian consumers for future growth. It's been shut out of China despite being based there from a production stand…
Shut out of China? How so?
It's been a few years since last I was in China, but I remember visiting several Apple flagship stores and seeing iPads and iPhones everywhere on the street.
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#16Before people get out their pitchforks. These laws in India are a direct result of 200 years of British 'free' trade. Imagine the amount of damage something like NAFTA has done to the american working class - multiply that with 200 years. While america was in its infancy - before it industrialized - it too used protectionism as a way to allow its local industries to grow, how is it bad if India is trying to do the sa…
I'll add that America is the most protectionist country according to Credit Suisse: http://www.businessinsider.in/The-country-that-imposes-the-m... (Couldn't find link to original report)
Worked out well for America. Protectionist laws are a legitimate tool for social and economic progress.
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#17> Apple was expected to receive an exemption from the rule, earning a recommendation from country's Department of Industrial Policy and Promotion, but the ministry of finance has decided Apple's products do not fall into the cutting-edge technology category. A source told Reuters Apple did not provide enough material to justify the exemption. So did Apple just submit a crappy application? Or is the ministry not follo…
India is heavily invested in protectionism, that's the primary issue, the exemption is in place because it was clear no one was going to make smart phones there.
Well, given Micromax exists and has manufacturing (and HQ) in India, now Indian government can say that smartphones are not cutting-edge high-tech per se.
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#18Earlier quoted context omitted.
How do Apple's products qualify as "cutting-edge technology"? Or, phrased differently, would Samsung also qualify? HTC? LG? What differentiates "cutting-edge" from "just another widget" in the consumer electronics sector?
I read "cutting edge technology" as "computers, phones, and other sophisticated electronics." It would be helpful if the article mentioned if the Indian government provides a concrete definition.
the cutting edge of technology is always moving, moreor less tautologically, they could give better guidelines (i haven't read them they might actually be very good guidelines already) but there isn't going to be a concrete definition.
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#19What's 30%? 30% of sales by unit, sales by price, items for sale, floor space? Or something else?
At least 30 per cent of the value of procurement of manufactured/processed products shall be sourced from Indian small industries.
So for high margin product like iphone, they're going to base it on cost of good or (materials). There's probably some fudging room.
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#20What's 30%? 30% of sales by unit, sales by price, items for sale, floor space? Or something else?
At least 30 per cent of the value of procurement of manufactured/processed products shall be sourced from Indian small industries. So for high margin product like iphone, they're going to base it on cost of good or (materials). There's probably some fudging room.
For each product? You can't sell any product unless 30% of it was made in India?