Apple is “on course” to gain approval for its first retail stores in India, according to a Bloomberg report citing “a person with knowledge of the matter.” The government is expected to clear Apple’s application, but it’s unclear when final approval might come.
“The Indian government plans to push through Apple’s application to set up outlets, the person said, asking not to be identified as the information isn’t public. The company is resubmitting the request as it wasn’t in the right format, the person said.”
As a provider of high-end consumer technology, Apple should qualify for government approval, which would make it exempt from a rule that forces foreign businesses to pass on 30 percent of their revenue to the Indian government.
Apple CEO Tim Cook is said to be looking for new markets where the Cupertino company can grow after forecasting its first sales decline in over a decade. India presents an ideal opportunity, boasting the world’s fastest-growing economy and 220 million smartphone users.
However, Apple’s top tier prices could prove to be a stumbling block. When it launched the iPhone 6s in India late last year, it was forced to slash prices and introduce a trade-in program just a few weeks later to boost lackluster sales.
That tactic certainly worked, though. During an earnings call last month, Cook revealed that iPhone sales grew a record 76 percent in India last quarter, leading to a 38 percent increase in revenue. Official Apple stores could raise those figures even more.
Apple filed its application for retail stores with India’s Department of Industrial Policy and Promotion late last month, and although it can be a lengthy process, it’s thought the company will have no issues in gaining approval.
It’s unclear at this point when that might happen, however.
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