Will there be repercussions from the US Federal government about this?
they probably supported it to get production out of china. why would there be repercussions?
Mass Production of iPhones to Start in India
11–20 of 107 posts
Re: Mass Production of iPhones to Start in India
#12Earlier quoted context omitted.
"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.
How dare a country enforce policies that benefit the domestic economy.
Re: Mass Production of iPhones to Start in India
#13India should demand that the Chinese firm share their manufacturing techniques.
Re: Mass Production of iPhones to Start in India
#14Man, 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 s…
What makes you think you will not pay a premium for iPhones in India in the future?
Apple prices based on demand curves, not supply costs.
Re: Mass Production of iPhones to Start in India
#15Trying 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. T…
I think Apple is pretty late at this point. Xiaomi and Oppo have figured out the distribution, localization, and a sizeable user base already there, and a decent smart phone now costs $150-200. They are quite good phones and from what I understand, price is the biggest driver for sales.
Re: Mass Production of iPhones to Start in India
#16Man, 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 s…
What makes you think you will not pay a premium for iPhones in India in the future? Apple prices based on demand curves, not supply costs.
India has a really high import tax on electronic items. Even if Apple charges a slight premium over its US prices, it's still going to be significantly cheaper than what it currently is.
For example: a 64 GB iPhone X is currently selling for around 1100 dollars.
Re: Mass Production of iPhones to Start in India
#17Man, 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 s…
What makes you think you will not pay a premium for iPhones in India in the future? Apple prices based on demand curves, not supply costs.
I believe it would reduce the import duty on the devices manufactured in India.
Re: Mass Production of iPhones to Start in India
#18I agree with an above poster, this seems to me like a political or legal concession just for Apple to be able to sell in India more easily (or maybe at all?).
The infrastructure and political circumstances in India are just laughable.
Read all the articles about the manufacturing ecosystem around Apple factories in China, the special bonded customs zones the regional governments set up, the incentives, and workers they help recruit.
India by comparison is a disaster. You don't even know which official to bribe to get the power to stay on properly. Almost more trouble than it's worth to enter that market.
Re: Mass Production of iPhones to Start in India
#19Trying 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. T…
Gdp per capita for India is around ~$2000. India does not have much of a market for +$500 phones nor does it have a contract system where the +$500 can be paid over time. So I don't see it help Apple much in gaining market share. At the current Apple prices I have seen multiple long time Apple users leave Apple. Unless Apple is willing to cut its margins dramatically I don't see them getting much of a foot hold in India.
Re: Mass Production of iPhones to Start in India
#20Man, 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 s…
The company manufacturing on the outskirts of Bangalore is Wistron. Not Foxconn.