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

Discussion in 'Mac Blog Discussion' started by MacRumors, Dec 1, 2016.

  1. MacRumors macrumors bot

    MacRumors

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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
     
  2. Avieshek, Dec 1, 2016
    Last edited: Dec 1, 2016

    Avieshek Suspended

    Avieshek

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  3. ILuvEggplant Suspended

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  4. Wiesenlooser macrumors 6502a

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    Welcome to Apple 2016: when 90% of news ar business deals and at the end of the year they'll throw you a bone via an expensive MacBook Pro.
     
  5. ganja24 macrumors 6502

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    Apple in India... No thank You, get your act straight Apple
     
  6. mistasopz macrumors 6502

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  7. sudo1996 Suspended

    sudo1996

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    Seriously, you guys are criticizing Apple for trying to sell electronics in a market that demands them?
     
  8. Aman_5ingh macrumors newbie

    Aman_5ingh

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    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.
     
  9. konqueror4u macrumors regular

    konqueror4u

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    Apple is innovative in expanding its markets than its products as multi national company. Anyway good move. Apple cannot ignore India and China which accounts to 1/3 of worlds population with their growing incomes.
     
  10. MysteriousStain macrumors member

    MysteriousStain

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    Just as long as the briefcases full of cash don't get any thinner....
     
  11. chr1s60 macrumors 68000

    chr1s60

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    India must be the number one buyer of watch bands.
     
  12. djcerla macrumors 68000

    djcerla

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    Apple is killing it in India, with 66% of hi-end smartphone sales. No wonder they need better logistics.
     
  13. Everlast66 macrumors newbie

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    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!
     
  14. djcerla macrumors 68000

    djcerla

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    "innovative in expanding its markets" =/= "innovative and expanding its markets"

    With this level of reading comprehension skills one should not wonder why Donald Trump won the elections.
     
  15. furi0usbee macrumors 68000

    furi0usbee

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    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.
     
  16. Cineplex macrumors 6502a

    Cineplex

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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.
     
  17. Cloudkicker macrumors 6502

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  18. konqueror4u, Dec 2, 2016
    Last edited: Dec 2, 2016

    konqueror4u macrumors regular

    konqueror4u

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    I just saying they are innovative in earning money than their products I think we both mean the same :)
    --- Post Merged, Dec 2, 2016 ---
    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.
     
  19. BornAgainMac macrumors 603

    BornAgainMac

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    I think instead of answering that, Tim needs to just retire. Tim's replacement can address your question.
     
  20. konqueror4u macrumors regular

    konqueror4u

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    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.
     

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