India is seeking a commitment from Apple that it establish a local manufacturing presence before it is able to open any Apple stores there.
Bloomberg quotes an unnamed senior government official as saying requirements for using 30 per cent of local content in products could be relaxed if the California-based consumer electronics giant announced a timeframe for local manufacturing. This could include production via a local partner, such as Foxconn.
Apple Insider notes that India’s industrial policy means foreign companies wanting to open a single-brand store must use 30 per cent local components. This is aimed at strengthening the country’s industrial sector and employment figures.
Apple currently has only 2 per cent of the Indian phone market, which is predicted to add another 1 billion smartphones in the next five years. It products are currently sold through re-sellers.
Over four-fifths of the market is currently dominated by phones priced under $US 150.