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Also how "complicated" is the manufacturing? Is it just lsat-mile assembling of all pre-made components shipped in from the US, China, Germany, et al. or the same technical processes and complexity that goes on in one of these Chinese plants that pump out the iPhone X, XS and XS Maxes?
Earlier quoted context omitted.
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.
That isn't right. The iPhone X costs (just under) 1,00,000 INR retail in India, which is over 1400 usd.
This includes taxes.
For reference: https://www.flipkart.com/mobiles/apple~brand/pr?sid=tyy,4io&
Earlier quoted context omitted.
It’s not “just” that, it’s actially the desired result of the protectionist policy, which appears to have been effective.
Why don't other large, developing countries adopt similar policies? What are the downsides?
This is so against globalisation and global trade it‘s not even funny. Totally cool if Apple did this voluntarily, but the only reason they‘re doing it is to prevent high import taxes. India is a huge market. So it‘s all good. Brazil is a good deal smaller and requires the same thing. So does Argentina (and is even smaller). Now imagine every country would do this.
iPhones are a luxury product. A tax on imported high end electronics is a tax on the well-off. Not only that, it's the best kind - a tax that an end-user can choose whether or not they want to pay.
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You are forgetting India is a land of 1.3 billion people. There are at least 50 - 100 million people who are willing to spend more than 500$ on a phone. That's a big enough market for Apple to consider.
No. The sale of 500$+ phones in only in a few million.
I 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 th…
Oh dear. Thats patently false. Major manufacturing usnits get their own dedicated connection along with own local grids. The power situation for large industries is as good as it gets. Smaller industries and consumers may get the shaft in some areas but this is never the case for the big ones in major manufactiruing areas.
This is so against globalisation and global trade it‘s not even funny. Totally cool if Apple did this voluntarily, but the only reason they‘re doing it is to prevent high import taxes. India is a huge market. So it‘s all good. Brazil is a good deal smaller and requires the same thing. So does Argentina (and is even smaller). Now imagine every country would do this.
This is so against globalisation and global trade it‘s not even funny. Totally cool if Apple did this voluntarily, but the only reason they‘re doing it is to prevent high import taxes. India is a huge market. So it‘s all good. Brazil is a good deal smaller and requires the same thing. So does Argentina (and is even smaller). Now imagine every country would do this.
Earlier quoted context omitted.
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.
> a 64 GB iPhone X is currently selling for around 1100 dollars. That isn't right. The iPhone X costs (just under) 1,00,000 INR retail in India, which is over 1400 usd. This includes taxes. For reference: https://www.flipkart.com/mobiles/apple~brand/pr?sid=tyy,4io&
I live in Sweden, and the pricing will go like this:
- The US: $999
- The EU: €999
- Sweden: 9900 SEK
Depending on currency rates, it can become up to 30% more expensive.
My favorite discovery was around the time of the trashcan MacPro. It was cheaper to fly to New York, buy the Mac, and fly back than to buy one in Sweden. And you would still have money left over.
Apple doesn't manufacture in the US as they are not forced to manufacture in the US. If they were, they'd make it happen and work-around any issues, just as they have in India.
Apple doesn't want to manufacture in India (via Foxconn) but the Indian regulations and government didn't budge which forced Apple's and Foxconn's hand. Result: Apple/Foxconn is now making iPhones in India.
If the US citizens stood up for their own interests more, then there would be a Made in the USA iPhone... perhaps more expensive than a China made one, but Apple may decide to absorb the margin hit to retain marketshare in their largest market.
[1] https://www.theverge.com/2019/1/28/18200330/why-apple-cant-m...