Photo Credit: Bloomberg
- India eased foreign sourcing rules on Wednesday
- Rule forced companies to source 30 percent of their production locally
- Most of Apple’s components are manufactured in China
Apple is poised to start online sales of its devices in India within months, a person familiar with the matter said, benefiting from new rules making the world’s fastest-growing smartphone market more attractive to foreign brands.
On Wednesday, India eased rules that forced companies such as Apple to source 30 percent of their production locally – a requirement the iPhone maker has been lobbying against for years – to include exports as part of the requirement.
That rule posed a problem for electronics brands because most of its devices and components are manufactured in China. The government also allowed so-called single brand retailers to set up online stores before physical shops.
With escalating trade tensions damaging ties between the US and China, New Delhi’s latest investment rules could provide a boost to Apple, allowing it to grow sales in the country and possibly help it reduce its high dependency on China by building out an alternative supply chain in India.
The Cupertino, Calif.-based device and services company will begin selling its iPhone, iPads and Apple Mac computers online in the coming months. It’s also firming up the Mumbai location of its first company-owned brick & mortar store in India – likely to open next year – the person said, asking not to be identified as the details are confidential. Selling online will be a big step forward for Apple in a country where counterfeit products abound in online platforms increasing buyers’ distrust