Apple’s McDonald’s solution for India

Tim Culpan, writing for Bloomberg, homes in on India’s desire that Apple build all devices sold in India in India:

A different Indian government policy, separate from the retail regulations, is pushing Apple to manufacture iPhones locally. The company isn’t keen, and the prospects in the near term are unlikely. To do so would require suppliers such as Taiwan’s Foxconn to hire tens of thousands of workers in single locations. Foxconn executives have stated their desire to avoid having China-style mega-factories in India.

If Finance Minister Arun Jaitley decides to uphold the ban, Apple has one final option. By signing a franchise agreement with a local Indian retailer, the company could get its shop fronts without the foreign investment. The business model would look a lot like McDonald’s, with Apple providing training and support while dictating layout, procurement and sales procedures.

An interesting idea. A strong precedent, giving up control of their brand in a way that Apple historically has fought against. Is that loss of control worth the money they could make in India?