Apple’s attempt to bypass Indian rules to open its own retail locations in the country has been rejected, Bloomberg reports. The company was expected to qualify for an exemption from rules forcing single-brand retailers to obtain 30 percent of their products’ materials locally, applying as a provider of cutting-edge technology. But sources with direct knowledge of the discussions said India’s Foreign Investment Promotion Board ruled Apple has to comply with the regulations, refusing to certify Apple for the exemption.
The decision still needs to be ratified by the government, meaning it could be overturned, but the ruling is a significant blow for Apple’s prospects in the country given most of its products are made in China and don’t meet the FIPB criteria. Apple already trails Samsung and Micromax in India due to the high price of its products. The company has ramped up advertising efforts in India in recent months, with Tim Cook likening the market there to China a decade ago.
Update: Bloomberg reports India’s finance minister has ratified the FIPB’s ruling, seemingly ending Apple’s plans to open its own stores in the country for the time being. The company will have to begin procuring at least 30 percent of device components in India if it wants to sell them through its own retail stores.