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Apple Suppliers Plan Major Production Move to India
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Exactly. When Oppo part of BBK, a Apple competitor wanted to sell phones in India they found out quickly that its very hard to set up a network of resellers for their products made in China because of the tariffs, and Indian loyalty to their own products. So they went ahead with setting up Indian factories for production. But India is such a large marketplace I don't think most here fantom that pretty much all that will be made in India will ultimately be sold there. Its like China is that bad guy and we need to diversify so we import less from China and more from India. But India is not as nice a society as some think it is with its 1.32 billion people. As posted by ahmadof look at the news from there.
Yeah, I think most of this production line move is a response to India's tariff. All the Apple production line move to India is for production of models they expect to have good sale in India. You don't see iPhone XS or iPhone XS Max or iPhone 11 Pro or iPhone 11 Pro max manufactured there. It is being hyped by anti-China sentiment as a move away from China. I think this is being exaggerated.
Human right issues is mostly weaponized by western countries. Realistically, human rights is closely associated with the economical situation of the country. Indian's economic development allowing higher living standard is a great human right achievements. There are certainly issues, even very severe ones. But we need to look at those realistically. Many issues have historical reasons and will likely take a long time to solve. Weaponizing human rights is perhaps the biggest abuse of human rights.
There is a very big class of people in India that get their Apple Products transported by friends from USA/CA to
1. Avoid the 40% tax
2. Buy something unavailable (like customised Macs)
Because its considered a norm that an Apple product has to be bought from US for savings, many older people don't buy it as gifts when they want. Many young people don't buy it when they need it. They buy it in the season when NRIs visit India.
Lowering that tax and setting up online store will give way more reasons to buy from India and buy more often.
1. Avoid the 40% tax
2. Buy something unavailable (like customised Macs)
Because its considered a norm that an Apple product has to be bought from US for savings, many older people don't buy it as gifts when they want. Many young people don't buy it when they need it. They buy it in the season when NRIs visit India.
Lowering that tax and setting up online store will give way more reasons to buy from India and buy more often.
At last! Last one out of China is a rotten egg.
An unspecified Apple supplier is planning to move a significant amount of production operations to India, according to The Times of India.
The unnamed Apple contract manufacturer is expected to shift six production lines in total, with the aim of accommodating the export of $5 billion worth of devices from India. Establishment of a new facility for these new Indian production lines is expected to generate employment for around 55,000 workers over the period of a year. It will begin manufacturing iPhones, but may expand to other devices in the coming years.
Apple suppliers Wistron, Pegatron, Foxconn, and Samsung, are all expected to set up production facilities in India. These vendors are expected to be joined by Indian vendors Dixon Lava and Micromax in supplying Apple.
Foxconn announced last month that it was planning to invest as much as $1 billion in India, and has already established its first manufacturing plant in India. Last month, Apple started making iPhone 11 at the Foxconn plant in India. This was the first time a top-of-the-line model was been manufactured in the country.
Many companies are planning to diversify their supply chains in an effort to reduce dependence on China, which has come under increased scrutiny amid the global health crisis and trade war with the United States.
The Indian government has motivated production with the "production-linked incentive" (PLI) scheme, designed to attract companies with large-scale requirements for electronic components and semiconductors. The government has pledged up to six percent of costs of locally produced goods over the next five years. 22 companies from various countries, including Taiwan, South Korea, and Germany, have already applied to the PLI scheme. There have been no applications from Chinese companies. The scheme has already exceeded the government's manufacturing revenue target.
India is the second-largest smartphone market, but Apple has generally struggled to establish a substantial foothold in the country in the past. Apple almost entirely sells China-made devices in India, but increasing local production would take advantage of the government's "Made in India" initiative, which could see Apple save as much as 22 percent on import duties and give it the option to reduce prices. Should Apple's supply chain expansion into India be successful, it may begin using the country as an "export hub."
Article Link: Apple Suppliers Plan Major Production Move to India
