India Government To Offer Apple (AAPL) a Reprieve from 30% Sourcing Requirement - Times of India

The Times of India is reporting that a 2-3 year exemption may be made for Apple (NASDAQ: AAPL) to open its own retail outlets in the country without any sourcing requirement as it tries to work out an arrangement under which the company will agree to local purchases once it gets a stronger toehold in the country.

Last year, a window was carved for foreign companies to set up shop in the country through the single-brand retail route. For companies opting to open stores under the single-brand retail format, the government has mandated 30% sourcing from local vendors. However, the government is expected to relax norms for Apple after commerce and industry minister Nirmala Sitharaman indicated a review at a press conference.

According to the paper, "It is only fair to insist on some local production and two-three years is a reasonable period. Five years may be too long," said a source, who did not wish to be identified.

Apple has told the government that it has started buying some chargers from the country, which are also being exported.

Apple specific stores are key to opening the market to prevent the higher priced iPhones from being sold, side by side, with lower priced, higher margin, competitors.

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