As India has relaxed its sourcing laws. Government of India is relaxing 30% of its sourcing laws in consideration of the foreign owned firms. Sourcing laws in India ask for at least 30% of the sourcing to be done domestically in India for any foreign manufacturers. However, there has been a relaxation provided by the Indian government in this law as it permits companies to briefly meet this necessity by buying products and goods that are made on India only to trade them in foreign lands and overseas locations.

This rule can be availed and taken advantage of for coming five years. After these five years, these companies will be required to source at least 30% of their retail products domestically in India. Apple is searching for opportunities to broaden its projects in India to dig deep into the smartphone market of this country where it is not very common as it is looked upon as luxury product. Apple initiated its assembling operations of iPhone SE during May of 2017 in India and now it is looking forward to establish stores in many major cities of India including Bangalore, Mumbai and New Delhi.

iPhone’s costs have increased significantly in Indian markets following the increase in tax imposed by the government of India on imports of smartphones. Indian government has imposed this tax increase to encourage and assist the manufacturing of these goods locally in order to develop the country’s industry. 15% customs duty is now imposed instead of 10% on all kinds of imported mobile phones. These circumstances have forced Apple to raise its prices to about 3.5% at least on average on its usual iPhone models.

Apple is second biggest market of mobile subscription in the world and at least 750 million individuals have either a simple mobile phone or a smartphone. As reported by IDC (International Data Corporation), Xiaomi of China and Samsung of South Korea are India’s biggest smartphone manufacturers with their massive shares of about 23.5% each at the closing of 3Q17. Apple is looking at the Indian territory as a big opportunity to expand its market and claim an even larger share of the worldwide mobile market. Right now, Apple claim’s less than 3% of India’s smartphone market but it is hoping to change that soon.