Apple Looking to Set Up Distribution Center in India to Streamline Logistics

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Apple is set to create a new distribution center in India to consolidate its logistics and supply chain in the country, according to The Economic Times. The center will be its first in India.

Currently, Apple products are brought to India via several different cities: Chennai, Mumbai, Bengaluru, New Delhi, Hyderabad and Chandigarh. Each city has a different value-added tax (VAT) rate, which causes price discrepancies when the products are shipped directly from the airport to distributors. Further, online retailers in the country source their inventory from low-VAT territories so they can gain a price advantage over brick-and-mortar retailers.

The distribution center, which Apple's global logistics partner DB Schenker will own and operate, will be in the city of Bhiwandi, near the city of Mumbai. An unnamed executive told The Economic Times that the center will "allow Apple to stock its products adequately, will ease operations and streamline its logistics and supply chains." It will also help Apple maintain consistent pricing for its products.

Apple has been ramping up efforts to gain a larger foothold in India. In July, the Indian government officially adopted rules that would pave the way for the first Apple retail stores in the country. The company is also opening up an iOS app design and development accelerator and a campus focused on Maps development in the cities of Bengaluru and Hyderabad, respectively. The Cupertino company has also asked for financial incentives to make it easier to create an iPhone manufacturing plant in India.

Article Link: Apple Looking to Set Up Distribution Center in India to Streamline Logistics
 

Aman_5ingh

macrumors newbie
Dec 1, 2016
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Bangalore, India
Appealing to 1% of the population of India still means 12.5 million possible customers. This 1% is among the 28% that live in urban areas, have access to Internet and toilets, are college-educated and end up taking engineering jobs, occasionally have Italian or French cuisine, and smell of cologne, not curry.
 

furi0usbee

macrumors 68000
Jul 11, 2008
1,781
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Streamline profits more like it.
LOL. Exactly. To save even more money, simply move the entire corporate headquarters to Ireland. Since you make 99% of your products off shore, just make that last step and go all out. Sadly, when my 2012 rMBP (15") dies, I don't know if I will ever buy another Mac. I have soured so much on Apple over these last few years. The computers/OS is dumbed down so much, I fear I will have to jailbreak macOS in the next few versions just to install apps I don't buy from the Mac App Store.
 
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Cineplex

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Jan 1, 2016
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So making iPhones in India makes distribution easier....yet they import iPhones from China in this market? But at the same time they won't bring manufacturing here because of the lack of skill....yet India has the same problem using Apples logic. So which is it Tim? Is China the only place in the world with manufacturing knowledge or not? If you can make iPhones in India, you can make them in the USA as well.
 
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konqueror4u

macrumors regular
May 18, 2016
119
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Programmers Heaven
Expanding its markets - Yes
Innovative - No
The only innovations we've recently seen from Apple have been removing of a headphone jack, removing of ports and function keys and adding a touch bar. With such "innovation" soon they'll have nothing to sell on that "expanded" market!
I just saying they are innovative in earning money than their products I think we both mean the same :)
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So making iPhones in India makes distribution easier....yet they import iPhones from China in this market? But at the same time they won't bring manufacturing here because of the lack of skill....yet India has the same problem using Apples logic. So which is it Tim? Is China the only place in the world with manufacturing knowledge or not? If you can make iPhones in India, you can make them in the USA as well.
India produces around 2 million grads in STEM so it should not be a problem and they are cheap. Ofcourse we do not need STEM grads in manufacturing so economics is the deal breaker. India is near to China and India's young population is its asset.

Going by the logic you presented Apple has to price iPhone as per the manufactured location. So US manufactured iPhone will cost twice the Asia manufactured iPhone are we ready to pay twice for the same iPhone? Trust me manufacturing costs in India and Vietnam will be cheaper than China. India with its 1.3B population has potential to be Apple's biggest market in Asia after China.
 
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BornAgainMac

macrumors 603
Feb 4, 2004
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So making iPhones in India makes distribution easier....yet they import iPhones from China in this market? But at the same time they won't bring manufacturing here because of the lack of skill....yet India has the same problem using Apples logic. So which is it Tim? Is China the only place in the world with manufacturing knowledge or not? If you can make iPhones in India, you can make them in the USA as well.
I think instead of answering that, Tim needs to just retire. Tim's replacement can address your question.
 
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konqueror4u

macrumors regular
May 18, 2016
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Programmers Heaven
I think instead of answering that, Tim needs to just retire. Tim's replacement can address your question.
Apple as Global corporation will not be able to address the issue. It involves interests of all the stake holders including the ones at overseas. I do not think world can afford Made in US products which was the primary reason Apple's production moved to china under jobs. Expanding markets are the bread and butter for the corporations.