India is a Hub of Resources | Apple Correspondents to Open Offices

Seems like the high collar folks from Apple are in the middle of implementing some kind of creative intervention in Asia. Apple wants to open up a chain of retail stores in India, but seeing to the country’s rich political background and lots of unforeseen “forces”, it might be a little god damn difficult for the ‘i’ device guru to make its move.

A trip to India, a handful of retailers and good old licensing is perhaps Apple’s day dream of opening up a multi-million dollar business in the Asian country. India has tons of States, way more than 35; it’s a big country that could generate a lot of revenue for new businesses. In this context, Apple is already a pre-established authority. Everyone knows about the company, they have seen its products and vice versa.

The question is: why has it become so hard for Apple to open up its retail shops in India? Is the weather too hot or the Indian authorities aren’t favoring the company’s stance on being more progressive?

We Don’t Want an Indian Partner | Apple Intends to Do Something Else?

Okay, according to the country’s by laws for foreign investors as big as Apple, there are some “special” rules. The Wall Street Journal sources suggest that the would-be Apple retailers are subject to source about 30% of their product sales/ income. Didn’t get that, did you?

In simple words, no matter how much money Apple will be making off those retail shops, 30% of the share has to be given to local Indian business partners. All the ‘i’ devices sold, have to have a 30% of an Indian source – the products have to some from a local business partner (at least 30% of the units).

Apple thinks that this is a big problem. Already they have their hands running blood red with Foxconn scandals. The company is having its products being produced in China and Hong Kong already, why would it want to include Indian manufacturers to a 30% proportion? But if Apple DOES sanction India to produce 30% of its devices, it would mean an unlimited number of retail stores all over the country.

Even if Apple does proceed now, it will take the company and Indian authorities a few years to implement the new business plans. What if in the coming time period, the Indian government notches up the 30% condition to 51%? Now that would be a huge punch in the face, won’t it? However, Apple needs to expand its reach all across the world. They are already doing it and by hook or by crook, they’re going to get what they want from Mother India. Period.