Apple Stores in India: Approval for 100% FDI in Single Brand Retail Clears Path

With the phenomenal growth in the Indian smartphone market over the past few years, Apple has been trying hard to open up its iconic Apple tree Stores in India in the belief that it will assistance the company carve out a larger slice of the smartphone pie in the country.

Still, government regulations had prevented 100% Foreign Direct Investment (FDI) in single-make retail, which is why Apple has had to wait, just like German cash-and-bear outlet Metro, and American retail chain Walmart.

Now, all the same, the Bharat's cabinet has approved a proposal to permit 100-percentage FDI through the automatic route in single make retail, paving the way for Apple and others to gear up dedicated stores in India. While the companies choosing to have this route volition nevertheless have to source 30% of their components locally, the time-frame for meeting that requirement has been extended to v years.

Apple is yet to issue an official argument on the developments, but it is surely a positive evolution for Apple who has been belongings high-level talks with the Indian government for the FDI approval.

There is still one caveat though: With real manor prices in the big cities going through the roof, it will exist interesting to encounter how many of these 'Apple Stores' the company does end upwards opening. The get-go few locations will be cardinal to Apple tree'southward success, peculiarly given the larger number of potential new smartphone buyers in Tier-two and Tier-iii.

Either fashion, 100% FDI or non, Apple may yet detect it hard to become a mainstream brand if information technology fails to price its products reasonably in the land. Only visiting an Apple tree Shop may not exist convincing enough for the cost-conscious Indian heir-apparent.