Apple’s plan of selling refurbished iPhones in India may not see the light of day anytime soon, but its dream of opening its own retail locations in the world’s second-largest smartphone market isn’t as elusive. Speaking to an anonymous source, the Times of India had reported that the Indian government is looking to bend its existing 30-percent rule and give the American tech firm three years to comply with local sourcing norms.
As a rule, foreign companies are required to source at least 30 percent of a product’s total sales value from local vendors, meaning Apple would have to purchase iPhone components from the country. Unfortunately for Apple, its complex supply chain, which extends across many manufacturing hotspots, including China, Japan, and the United States, has so far excluded India.
And yet there’s a silver lining: Apple is reportedly in talks with Foxconn, the company that assembles the iPhone, about building a factory in India, in a move that may very well satisfy the government’s 30-percent policy. Obviously, it remains to be seen whether Foxconn can put up a factory within the prescribed time frame, but considering what’s on the line, we have no doubt things will turn out well for Apple.
Industry analyst Strategy Analytics previously said Apple’s market share in India fell to 2.7 percent in the first quarter of 2016, from a high of 6.6 percent in 2012, amid the proliferation of cheap smartphones in the region.