Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
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Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#2The title seems like the setup for a joke. Are we sure 30% of code from apps in the app store wasn't produced by outsourced programmers in India?
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#3> 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 following the spirit of the law?
I won't pretend for a moment that I know anything about Indian law though, so I have no idea who's to blame here.
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#4The title seems like the setup for a joke. Are we sure 30% of code from apps in the app store wasn't produced by outsourced programmers in India?
You don't buy App Store apps from the Apple store, you buy hardware, so that's not relevant.
Though if Indian programmers had contributed to the software that comes preinstalled on the products sold there, I wonder what would happen. Does "locally sourced" only apply to physical manufacturing?
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#5> 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.
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#6> 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…
I'm going with bribery. Some Indian officials just made a good chunk of change.
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#7> 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?
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#8The title seems like the setup for a joke. Are we sure 30% of code from apps in the app store wasn't produced by outsourced programmers in India?
You don't buy App Store apps from the Apple store, you buy hardware, so that's not relevant. Though if Indian programmers had contributed to the software that comes preinstalled on the products sold there, I wonder what would happen. Does "locally sourced" only apply to physical manufacturing?
> You don't buy App Store apps from the Apple store, you buy hardware, so that's not relevant.
Totally right. I wasn't thinking about this correctly.
> Though if Indian programmers had contributed to the software that comes preinstalled on the products sold there, I wonder what would happen. Does "locally sourced" only apply to physical manufacturing?
A very good question. How much should the software count towards what something is compared to the hardware, and how much would Apple value iOS compared to the hardware design of a new iPhone. I imagine traditionally it would be quite a bit more, but Apple also invested in a foundry and produces their own chips, so that definitely increases the hardware side valuation.
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#9> 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 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 standpoint. If India can force Apple to shift production to India in exchange for access to its consumers that would be a great coup.
Re: Apple Not Able to Open Stores in India Without Selling 30% Locally Sourced Goods
#10> 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…
I'm going with bribery. Some Indian officials just made a good chunk of change.
Or, more likely, didn't make the chunk of change they wanted ...