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Apple supplier Foxconn to invest $1B in India, sources say

reuters.com

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Re: Apple supplier Foxconn to invest $1B in India, sources say

#191

Post by pradn »

puranjay wrote: post #177
harshalizee wrote: post #11

I wonder if this will be the start of an Exodus of manufacturing away from China. Corporations are constantly under scrutiny with their brand messaging and signaling with respect to various conflicts involving China, Hong Kong and the unrest within the United States. India on the other hand, is a Democratic republic, might help alleviate some issues. If India plays its cards right, they may pave the way for a manufac…

One of the key reasons for manufacturers to move to India is the massive domestic market. Apple's devices have to be imported into India which attracts an import duty. Minus this tax, Apple's products would be substantially cheaper, which would help it sell a lot more units.

While India is a leader (currently #2 behind China) in units of smartphones sold, their value is only ~20 billion of the ~500 billion USD smartphone market. I don't see extra sales in the superpremium tier being a strong motivator. In India, iPhones are luxury goods, where the higher price makes them more attractive. The sort of person who can afford ~8x average monthly earnings for a phone can also afford a ~6x multiplier. (That's why iPhones are popular in movies for villains and corrupt politicians.)

Re: Apple supplier Foxconn to invest $1B in India, sources say

#192

Post by tixocloud »

MrsPeaches wrote: post #169
tixocloud wrote: post #154

Earlier quoted context omitted.

There is opportunity to be somewhere in the middle ground that can help lift the wealth of a 3rd world country. In the case of Malaysia, the country focused heavily on manufacturing for foreign entities but was structured as joint ventures with the goal to retain knowledge within the country. Many industrialised nations saw this as “protectionism” as capital flowing in without flow out as easily and you are bounded b…

Thanks, that sounds like an interesting example. Do you have any links to where I can read more about the policies? When was this?

I’ll have to do some research but I can drop you an email once I find some. This was roughly around 80s and 90s. There was a vision to become a first-world nation by 2020.

Re: Apple supplier Foxconn to invest $1B in India, sources say

#193

Post by formercoder »

cm2187 wrote: post #158
pankajdoharey wrote: post #20

Earlier quoted context omitted.

Actually I think, the most ideal countries to expand manufacturing to are African countries, they have some of the same advantages once china had. 1. Mineral Resources. 2. Cheap Labour. 3. High Density of Lanthanide and Actinide group minerals. China also has a fourth advantage which is a good mix of Production, Manufacturing and Electronics Engineers. Which Africa doesn't have. On the other hand India doesn't have t…

I think you should add to your list political stability, infrastructures (including basic things like stable electricity supply) and a cooperative workforce.

And acceptable levels of currency risk.

Re: Apple supplier Foxconn to invest $1B in India, sources say

#195

Post by amelius »

dutch3000 wrote: post #194

somehow these global corps need to be held to a unified standard with regatds to environmental and human impact as these vary country by country.

Yes but good luck with that.

Especially since western companies/countries have profited from the exact same exploitation for so many years already.

Re: Apple supplier Foxconn to invest $1B in India, sources say

#196

Post by paganel »

cpursley wrote: post #144
sufyanadam wrote: post #132

Earlier quoted context omitted.

I have to disagree with you on almost all points. I lived in East Africa for 20 years, and my observation of the African people was that their intelligence was similar to what you'd find anywhere in silicon valley. The problems you mentioned with financial services was solved way back in 1999 and rivals any mobile / cashless system anywhere else in the world, and that was long before things like square came out in th…

I don't think people are suggesting folks in Africa have a lower IQ, they're stating that they have less training an expertise (required for this type of manufacturing). I guess the big question of this is the case is how to get people there skilled up. I wonder how China did it before becoming a manufacturing juggernaut.

China had a strong and very long tradition of educating the members of its administration, which I guess counted. There was of course Mao’s Cultural Revolution that tried to wipe all that tradition off, but it failed miserably.

Re: Apple supplier Foxconn to invest $1B in India, sources say

#197

Post by fierarul »

harichinnan wrote: post #105
brisance wrote: post #77

Someone help me understand this. If China and India get into a conflict, doesn't that mean each side would be trying to get the other's exports banned? Which means, effectively, Foxconn is handicapping itself?

India and China recently ended up at war. 20 Indian soldiers died and an undisclosed number of Chinese soldiers died during a primitive battle with Kung Fu sticks and stones. There's an agreement on not using firearms in conflicts and that has held up for some 60 years. There's no reason to believe this would be an all out war anytime soon.

> There's an agreement on not using firearms in conflicts and that has held up for some 60 years.

This is the first time I heard about this and a quick search confirms it's true. Amazing!

Re: Apple supplier Foxconn to invest $1B in India, sources say

#198

Post by CryptoPunk »

MrsPeaches wrote: post #152
pankajdoharey wrote: post #20

Earlier quoted context omitted.

Actually I think, the most ideal countries to expand manufacturing to are African countries, they have some of the same advantages once china had. 1. Mineral Resources. 2. Cheap Labour. 3. High Density of Lanthanide and Actinide group minerals. China also has a fourth advantage which is a good mix of Production, Manufacturing and Electronics Engineers. Which Africa doesn't have. On the other hand India doesn't have t…

> So the ideal situation in my view would be to setup manufacturing hub in African countries. Hire Chinese/Indian/American/Russian manufacturing Engineers and the rich mineral resources in African countries. Wow, neocolonialism much? This sort of extractive thinking is exactly the reason that countries in Africa remain some of the poorest in the world. Which companies do you think will be bringing in these foreign wo…

>How many counties can you name for whom bringing large numbers of foreign knowledge workers worked to build up a a strong manufacturing core (apart from maybe operation paper clip [1])?

Singapore. If you expand your criteria for success a bit to 'advanced economy', many countries have utilized foreign labor to great effect. Saudi Arabia, Dubai and other Middle Eastern states saw signficant economic development, and the emergence of large export industries, utilizing foreign labor.

Caribbean states with economies centered around finance and tourism, and at least one African state, Botswana, with its mining industry, did the same.

Re: Apple supplier Foxconn to invest $1B in India, sources say

#199

Post by shwoopdiwoop »

pankajdoharey wrote: post #20
kodablah wrote: post #12

> With India’s labour cheaper compared with China, and the gradual expansion of its supplier base here, Apple will be able to use the country as an export hub While there are negatives, I appreciate how globalization of manufacturing helps lift poorer economies (albeit it slowly and not always agreeing with the politics of the newly-built middle classes). One might expect manufacturing in mid-Africa in two decades.

Actually I think, the most ideal countries to expand manufacturing to are African countries, they have some of the same advantages once china had. 1. Mineral Resources. 2. Cheap Labour. 3. High Density of Lanthanide and Actinide group minerals. China also has a fourth advantage which is a good mix of Production, Manufacturing and Electronics Engineers. Which Africa doesn't have. On the other hand India doesn't have t…

One major advantage that China has is an insanely good transportation and logistics network. Anything you need for production, you can get in a very short time and large quantities.

I can see how population density would be a huge factor when it comes to how feasible it is to establish and develop these networks.

Re: Apple supplier Foxconn to invest $1B in India, sources say

#200

Post by theduder99 »

harshalizee wrote: post #11

I wonder if this will be the start of an Exodus of manufacturing away from China. Corporations are constantly under scrutiny with their brand messaging and signaling with respect to various conflicts involving China, Hong Kong and the unrest within the United States. India on the other hand, is a Democratic republic, might help alleviate some issues. If India plays its cards right, they may pave the way for a manufac…

https://www.forbes.com/sites/kenrapoza/2020/04/07/new-data-s...
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