Apple’s iPhone sales continue to struggle in India, but recent local sourcing regulation may finally allow Apple to open retail stores in the country.

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In January through March of 2019, the demand for iPhones fell 42%. In April, carrier discounts drove it up, but the chart fell again for the month of May and June. About 220,000 iPhone units were shipped during the Q1 phase, with April getting some spark when it sold 200,000 units.

India has long since been the target for production by Apple. The government is getting ready to relax their local sourcing requirements due to difficulty in attracting foreign direct investments. The Economic Times have mentioned that foreign investment was down 13% in 2018. Nirmala Sitharaman, finance minister of India has already confirmed that sourcing norms shall be reduced in the upcoming months.

Analysts predict that Apple will respond to this by opening retail stores and gaining a foothold in the country.

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