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Apple has joined a coalition of U.S. businesses in protest at India's sudden introduction of tech import restrictions last month, claiming the move will damage New Delhi's ambitions to become a global manufacturing hub and harm consumers (via Bloomberg).

apple-india.jpg

In a letter sent to U.S. officials this week, eight American trade groups asked the government to urge India to reconsider the policy, which will see the country impose a new license requirement for technology imports from November 1, covering everything from laptops and tablets to servers and datacenter components.

India didn't give a reason for the change in rules, but the move is thought to be an effort to boost local manufacturing, forming another prong in Prime Minister Narendra Modi's "Made in India" campaign to encourage domestic manufacturing in the tech sector.

The trade groups said the move "could significantly disrupt trade, hamper efforts to more closely integrate India into global supply chains, and harm businesses and consumers in both countries," according to a joint memo seen by Bloomberg. The policy was originally meant to go into immediate effect earlier this month, until authorities granted affected companies a three-month reprieve for them to obtain the required licensing.

U.S. industry groups including the Information Technology Industry Council, the National Association of Manufacturers, and the Semiconductor Industry Association have objected to the planned licensing rules, which they say could impact the shipment of American-made computers and electronics into India, inhibit the free flow of goods, and complicate business operations for all countries involved.

"This potential will only be achieved if businesses have assurance about a predictable regulatory climate," said the letter, which was signed by Apple, Intel, and other U.S. companies involved in technology and manufacturing.

Article Link: Apple, Other US Tech Firms Sign Letter Protesting India's PC Import Restrictions
 
Take to make stuff elsewhere otherwise we are just financing their build up of manufacturing for India (just like China), 🙄 build it up in the USA already and better start now it takes time to build up and generate talent. And yes it’s possible!
Only the Mac Pro is assembled in the USA, in Austin,Texas.
 
Take to make stuff elsewhere otherwise we are just financing their build up of manufacturing for India (just like China), 🙄 build it up in the USA already and better start now it takes time to build up and generate talent. And yes it’s possible!

India is a source of cheap labor from a country that is viewed as a reliable partner as an alternative to China. The US simply does no have the labor pool to compete with India for thoe types of manufacturing jobs where labor is a significant part of the assembly of a device.

Once designs for phones and computers become less labor intensive by combining what are now discrete components into a single chip, for example, greater automation becomes possible and manufacturing can return to countries with high labor costs and a skilled workforce. Devices will be designed for nearly fully automatic production with a few high skilled techs and manual labor; it won't be the factory jobs of old that employed entire towns.
 
Ah, yes, “we’re saying this for your benefit, India.”
While I agree that these firms are speaking for their own interest, I don't think they are completely wrong:

IT companies are trying to decouple themselves from China (both with R& and with chains of production), and India would look like a legit choice, thus the government should show itself as the opposite of China's by being reasonable and not too harsh.

Otherwise they may save pennies and lose pounds...
 
Take to make stuff elsewhere otherwise we are just financing their build up of manufacturing for India (just like China), 🙄 build it up in the USA already and better start now it takes time to build up and generate talent. And yes it’s possible!
Persuade US workers to work for $2/hr before dreaming about manufacturing stuff en mass in US.
 
Persuade US workers to work for $2/hr before dreaming about manufacturing stuff en mass in US.
Persuade companies to not take so much profit so they do not have to pay $2/hr.

So for hypothetical example:-
Indian manufacturing worker $2/hr creates $20 profit per product coming off the production line
US manufacturing worker $12/hr creates $5 profit per product coming off the production line

The company is making a profit but where do you think they are going to build their factories, India or the US? India of course because of greed.
 
If it is made in India, will it be at the same quality standards?

Sure. Apple and others will set the standards and pay what it takes to get quality; they aren't looking for the cheapest possible supplier. One area China has excelled at is knocking stuff off cheaply, given rise to AliExpress; it will be interesting to see if such a path is followed in India. One thing that benefited China for years was artificially low mailing costs which enabled sellers of cheap goods on sites like AliExpress to ship $3 watch bands with no shipping charge since they could cover the costs in the price; which lead to teh rise of AliExpress, DHGate and others.
 
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Persuade US workers to work for $2/hr before dreaming about manufacturing stuff en mass in US.
Exactly. There’s already labor shortages and people complaining that $18 an hour and full benefits isn’t enough to pour coffee. If Apple moved manufacturing to the US, I have to believe they’d build everything by machine and not with humans.
 
Imagine the red tape required to manufacture in the U.S. these days, even with humongous tax breaks and incentives. Environmental impact studies, NIMBY politics, labor agreements, federal and local regulators, unions, the list goes on. I'm not by any means suggesting the above red tape isn't worthwhile and necessary but when you are competing with a country with an inexhaustible labor supply, less regulation, and the political will to do it you have an uphill battle.

Of course there's the $2000 iPhone made in the U.S. vs the $1000 iPhone made in India or China. Electronics manufacturing left decades ago, followed by the textile industry (where can you buy a pair of pants made in the U.S.), followed by the plastics industry (no more U.S. made Tupperware), followed by just about every labor intensive industry.

We can't just snap our fingers and bring those industries back home, not in a global economy at least. Protectionism has always led to economic disaster.
 
Persuade companies to not take so much profit so they do not have to pay $2/hr.

So for hypothetical example:-
Indian manufacturing worker $2/hr creates $20 profit per product coming off the production line
US manufacturing worker $12/hr creates $5 profit per product coming off the production line

Except at $12, by the time you take out benefit and other costs the worker I only getting $8 before taxes and deductions, which means they're better of at McDonalds.

If $12 is their hourly wage, you're making no money once you pay all the non-wage costs for a worker.

The company is making a profit but where do you think they are going to build their factories, India or the US? India of course because of greed.

While companies clearly want to maintain margins, it's simple economics where labor intensive work moves to cheap labor locales; and is consumer driven.

For all the people who say "Buy American" or "Buy EU," how many when faced with a choice of a product made in their country vs one half as much that is imported buy the import?

Consumer behavior drives manufacturing decisions because many choices are based on price first.

Exactly. There’s already labor shortages and people complaining that $18 an hour and full benefits isn’t enough to pour coffee.

Except it's not a labor shortage but the unwillingness of companies to pay what it takes to get workers. If McD's pays more than you do that's not a labor shortage when you can't hire; it's a problem with your business model.

If Apple moved manufacturing to the US, I have to believe they’d build everything by machine and not with humans.

Of course. Automation is the key to manufacturing in high labor cost areas.
 
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