India takes a bite out of Apple, spelling disaster for the tech giant. Causing Apple to shell out more money to maintain their overseas markets. Since any company wishing to rent out retail space in India needs to have at least 30 percent of goods made in the country. The announcement puts Apple retail stores in tech limbo until the requirements are met. This puts a new country on the “destroy Apple” list with Russia and China. And Putin is happy to see the American NGO squirm.
Apple Outsourcing to India
If Apple wants to do business in India, they may need to reorganize their whole operation. The recent news comes on the heels of possible retail stores opening in the country. The government requires that any company wishing to open a storefront must meet strict requirements. One of those requirements is that at least 30 percent of sold goods must be made in India. The tech giant almost slid passed the rules. However, a recent report from a senior government official shot down the possibility.
What Does China Think?
If Apple moves forward with their plan to open retail stores in India, China may lose some business. China has traditionally manufactured the tech giant’s innovative products. However, if 30 percent gets outsourced, China may further tighten restrictions on NGOs? This could damage a relationship already on the edge. There are plans for a design and development accelerator division to open in India by 2017. There is also a new Apple office in Hyderabad. This could offset the 30 percent locally sourced goods rule a bit. Leaving China to continue business as usual. After all, CEO Tim Cook recently visited China to make a billion dollar deal to invest in a Chinese tech company. The deal ensured that Apple’s online products and services could continue as planned.
Russia and Putin Happy
The decision by the Indian government to uphold their strict rules is surely making Russia president Putin pretty happy. Russia has been battling alongside China to cast out most foreign NGOs. Or Russia and China have increased taxes for the foreign companies to do business. Russia is also no stranger to developing their own tech-savvy companies. Companies like VK and Yandex continue to keep Russia in the know. In the know while keeping Putin pleased as well. Could Putin be behind the pressure from India?
