Apple Executives to Visit India to Discuss Local Manufacturing Plans

[MacRumors]

Apple executives will attend a high-profile meeting with Indian officials later this month in order to discuss the company's plans to set up a manufacturing plant in the country.

Apple is said to be seeking a number of tax and other incentives at the meeting, set to take place on January 25, and could potentially ask for long-term duty exemptions. According to PTI, Indian representatives from a number of government departments will attend, including officials from commerce, industrial policy and promotion (DIPP), revenue, environment and forest, electronics, and IT.

Last month it emerged that Apple was in talks with India to explore the possibility of making products locally, as well as set up a distribution center, after Prime Minister Narendra Modi ordered his government to exempt foreign retailers for three years from a requirement to locally source 30 percent of goods solid in their stores.

Apple sent a letter to India's federal government in December, outlining its manufacturing plans and asking for financial incentives, and this month's meeting would appear to be the next step in the negotiations.

In September 2015, Apple CEO Tim Cook sat down with Prime Minister Modi to discuss various matters and Cook reportedly responded positively to Modi's invitation to open a manufacturing base in India. Foxconn was previously reported to be looking at the possibility of an expansion into India to produce iPhones and iPads, but Cook's outspoken interest in the possibility was Apple's first public interest in the expansion.

Apple products are currently manufactured in six countries, including China, Korea, Japan, and the United States.

Article Link: Apple Executives to Visit India to Discuss Local Manufacturing Plans

 

[TehFalcon]

BS, should be trying to manufacture in the USA. Not India of all places. Thanks for supporting the American Economy, Apple.

 

[MH01]

They should move to Ireland for tax incentives .

 

[2457282]

BS, should be trying to manufacture in the USA. Not India of all places. Thanks for supporting the American Economy, Apple.

Apple has never manufactured phones in the US. I know that they are looking to see if Foxcom can set up a plant in the US, but that will likely be a fairly automated plant, so not many jobs. And because of the laws in India, Apple has to do this if they want to sell in that country. In other words, making phones in the US does not help Apple in India, only making them there help there. So not sure why you are going all Trump here.

 

[TehFalcon]

Apple has never manufactured phones in the US. I know that they are looking to see if Foxcom can set up a plant in the US, but that will likely be a fairly automated plant, so not many jobs. And because of the laws in India, Apple has to do this if they want to sell in that country. In other words, making phones in the US does not help Apple in India, only making them there help there. So not sure why you are going all Trump here.

1: This is not only for iPhones
2: India is not a Major sales country for them
3: It's about investing more into another country that isn't even a big part of your consumer base.

 

[jonnysods]

You will get tax incentives for building in India, but at the premium prices it's going to be hard to compete nationwide for new customers.

 

[Xi Xone]

You will get tax incentives for building in India, but at the premium prices it's going to be hard to compete nationwide for new customers.

I do believe they are planning to make a low-cost iPhone for that market (and some other countries)

 

[Avieshek]

Well, a better place than communist China.

 

[Stella]

Good policy, India. If companies don't like it, they have the option of not trading there and missing out on a large market.

 

[Oblivious.Robot]

1: This is not only for iPhones
2: India is not a Major sales country for them
3: It's about investing more into another country that isn't even a big part of your consumer base.

As far as I understand, by building Apple products in India, they'll be able to offer their products cheaper. Less import taxes for Apple, which would be passed on to customers, while maintaining a profit.

If the after taxed product costs lesser, more people would buy them over Samsung or other similar priced products. India is still one of the few growing markets for Apple.

Once they grow, then they'll be a "major sales country for them".

What I don't understand based on your third point is that, just cause the country is not a big part of their consumer base at the moment, they should just never invest in them?

I disagree, they're investing over there to grow in the future after all.
I'm certain it's a long game for Apple.

 

[G-News]

To manufacture you first need a product, Tim. A product!

 

[Kaibelf]

1: This is not only for iPhones
2: India is not a Major sales country for them
3: It's about investing more into another country that isn't even a big part of your consumer base.

1. Doesn't matter.
2. Duh. That's why Apple is investing in accommodating the laws there to break into that market.
3. Last I heard, sensible businesses try to grow into NEW markets.

 

[Cineplex]

Please, Tim. Stay there. Take Jonny and the Beats guys with you.

 

[TehFalcon]

As far as I understand, by building Apple products in India, they'll be able to offer their products cheaper. Less import taxes for Apple, which would be passed on to customers, while maintaining a profit.

If the after taxed product costs lesser, more people would buy them over Samsung or other similar priced products. India is still one of the few growing markets for Apple.

Once they grow, then they'll be a "major sales country for them".

What I don't understand based on your third point is that, just cause the country is not a big part of their consumer base at the moment, they should just never invest in them?

I disagree, they're investing over there to grow in the future after all.
I'm certain it's a long game for Apple.

No im saying investing MORE into a country where you have much less of a presence then a place where you do is why Apple is getting so stale here and in the other popular markets. If they would invest in their popular markets FIRST then it would be much less of an issue.

 

[jonnysods]

I do believe they are planning to make a low-cost iPhone for that market (and some other countries)

Flip send one my way. The SE was meant to be low cost but was still cost prohibitive.

 

[konqueror4u]

Good move for Apple's business growth. Basically iPhone costs $1000 in India so by lowering it to $650 they will be able to see more. Manufacturing in US is not possible due to higher labor costs if at all they manufacture it will be automated and still they will cost more.

I think Apple has to go for local manufacturing and come up with country specific pricing based on the manufacturing costs associated to the country. I think every customer will be happy to purchase an iPhone manufactured in their country.

In US it might cost at least 2.5x - 3x more than the current price actually it will cost more than that due to 5x-6x labour cost but than can be offset by providing tax exemptions and incentives. I am talking this as an example if every component of iPhone sold in US in manufactured in US. I am sure there will not be more consumers to buy an iPhone if it priced around $1500-$2000.

 

[pankajdoharey]

China actually has better Infrastructure to produce goods so it comes as a surprise to me. Of all places in India Tamil Nadu is home to the largest number of semiconductor manufacturers in India, if anywhere in India it can come in TN or Bangalore which are the best placed in terms of Infrastructure in India. Lets see if it even begins before the next 2 yrs, because such things usually take a long time.