Mass Production of iPhones to Start in India
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Mass Production of iPhones to Start in India
1–10 of 107 posts
Re: Mass Production of iPhones to Start in India
#2Trying to interpret this.
First of all $300M isn't a lot of money for this sort of operation. I guess it barely buys a good line of equipment, installed with an operable workforce, if that. Secondly, the amount of manual labour in iPhone assembly has to be pretty minimal with respect to margins. Can anyone enlighten us to the management situation?
I guess perhaps the true story behind the 'asserted' transition to an additional base in India includes other factors like: freeing Foxconn capital from China (currently their largest production base, with rising costs, a slowing market and perennial foreign exchange hassles), gaining additional internal production operations experience within a foreign non-'Chinese' (ie. Taiwan/China) environment, and cross-jurisdictional legal/tax/tariff/exchange rate hedging. (The US-China trade war has to have scared the pants off anyone in a consumer electronics this heavily.)
Re: Mass Production of iPhones to Start in India
#3Pretty meaningful change. Hopefully the advent of this will result in increased social mobility and the rise of a homegrown hardware technology industry in the coming years.
Re: Mass Production of iPhones to Start in India
#4Trying to interpret this. First of all $300M isn't a lot of money for this sort of operation. I guess it barely buys a good line of equipment, installed with an operable workforce, if that. Secondly, the amount of manual labour in iPhone assembly has to be pretty minimal with respect to margins. Can anyone enlighten us to the management situation? I guess perhaps the true story behind the 'asserted' transition to an…
"The company needs to meet a 30 percent local sourcing rule to be able to open its own stores in the country."
It is just the result of protectionism.
Re: Mass Production of iPhones to Start in India
#5Trying to interpret this. First of all $300M isn't a lot of money for this sort of operation. I guess it barely buys a good line of equipment, installed with an operable workforce, if that. Secondly, the amount of manual labour in iPhone assembly has to be pretty minimal with respect to margins. Can anyone enlighten us to the management situation? I guess perhaps the true story behind the 'asserted' transition to an…
It's a logistics/risk balancing/new demand move.
1. Logistics: Cheaper to ship to rich Middle east and maybe even Europe
2. Risk balancing: With uncertainty at political levels about tariffs and trade rules, it makes sense to distribute production to multiple places in the world.
3. New demand: Lower cost of production == lower prices in India. Apple has negligible penetration in the largest fastest growing market. This move is a bet to try to beat android competition in price and raise global demand for IPhones.
Honestly, this move is a no-brainer. The benefits are endless.
Re: Mass Production of iPhones to Start in India
#6Trying to interpret this. First of all $300M isn't a lot of money for this sort of operation. I guess it barely buys a good line of equipment, installed with an operable workforce, if that. Secondly, the amount of manual labour in iPhone assembly has to be pretty minimal with respect to margins. Can anyone enlighten us to the management situation? I guess perhaps the true story behind the 'asserted' transition to an…
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Re: Mass Production of iPhones to Start in India
#7My guess is that they are only doing this to meet the local restrictions in order to open stores, avoid extra taxes inside of India.
Re: Mass Production of iPhones to Start in India
#8Man, finally this came along. Apple had been negotiating for almost 3 years to setup manufacturing in India. Foxconn got a start in the outskirts of Bangalore where they manufacture iPhone SEs.
I as a customer am super glad this is coming along. Tired of paying a premium for Apple products in India. In addition to iPhones I seriously hope they start iPad manufacturing as well. IMHO iPads will probably have a better success rate in India once the prices reach parity with US.
Re: Mass Production of iPhones to Start in India
#9Trying to interpret this. First of all $300M isn't a lot of money for this sort of operation. I guess it barely buys a good line of equipment, installed with an operable workforce, if that. Secondly, the amount of manual labour in iPhone assembly has to be pretty minimal with respect to margins. Can anyone enlighten us to the management situation? I guess perhaps the true story behind the 'asserted' transition to an…
"The company needs to meet a 30 percent local sourcing rule to be able to open its own stores in the country." It is just the result of protectionism.
It’s not “just” that, it’s actially the desired result of the protectionist policy, which appears to have been effective.
Re: Mass Production of iPhones to Start in India
#10Will there be repercussions from the US Federal government about this?