Foxconn to Begin Production on iPhone X in India This July

[JPack]

I don't disagree.

But Cook has repeatedly cited that lack of US employment pool skills in this area as to why they continue most manufacturing in Asia/China.

If that is true, that is fine.

But if you then go and break ground in, say, India it starts to look a lot like. back-handed excuse.

The notion that ANY worker can not be trained is nonsense. Geographic natives are not magically born into the skillset. So, how is it that you can start from scratch in India not not, say, Indiana?

You can. It is mostly a matter of cost … and that is fine. One just needs to be honest about it. And Cook isn't.

Tim Cook is simply stating facts and he's right. The American workforce lacks manufacturing skills for most consumer electronics.

When was the last time an LCD was manufactured in the U.S.? There's not a single plant in the country.

Consider the other components in a smartphone, which include image sensors, logic boards, flexible connectors, optical films, aluminum chassis, etc. Where in the U.S. is there experience manufacturing those components? There's no skilled workforce sitting around waiting for these jobs.

India is assembling iPhone for their own domestic market in order to avoid 20% duties. None of the above mentioned components are made in India. Why would Apple bring assembly work to the U.S.? It artificially drives up the cost and lowers the quality of the product.

 

[NickName99]

I wonder if they’ll bring back any of the iPhone X cases in India? When I bought my iPhone X used after the XS came out, it was incredibly difficult finding an Apple electric blue leather case for it. The XS case doesn’t fit the X camera correctly, there’s a big gap. I had to set a watch in eBay, finally saw a used one show up and I grabbed it. All the new ones out there are poorly made and poorly fitting Chinese counterfeits, you really have to be careful when shopping online.

 

[DVD9]

So when does that Foxconn plant in Wisconsin open?

 

[Khedron]

You mean the current Samsung phones with still inferior facial recognition and silicon than the 2017 iPhone X?

Hilarious take on the iPhone X.

But still outperforms the iPhone X because Apple always cuts corners on RAM
[doublepost=1555090923][/doublepost]

Tim Cook is simply stating facts and he's right. The American workforce lacks manufacturing skills for most consumer electronics.

Depends whether you consider working unhealthy hours for unliveable wages to be a "skill"

 

[VRED]

Foxconn is set to begin production of the iPhone X in India this July, according to a report by The Economic Times. Production will take place at Foxconn's Chennai plant in eastern India.

According to an official with knowledge of the company's plans, Foxconn hopes to step up production capacity and "diversify to even higher models going forward." Today's report sees Foxconn's plans to move some of its production outside of China begin to take shape, following the manufacturer's trial production of the iPhone X earlier this month.

News about Foxconn's plans to produce high-end iPhones in India emerged late last year. According to a Reuters report, Foxconn invested $356 million to expand an existing plant and take on the new iPhone production, creating as many as 25,000 jobs in the process.

Foxconn has been considering expanding its production plants in India as a way to diversify its supply chain away from China, where most of the Taiwan-based firm's facilities currently reside. Apple manufactures most of its iPhones through Foxconn, but the latter's growing India base provides security in the face of Apple's vulnerability to rising U.S.-China tensions over trade and technology.

Previously, Apple partnered with Wistron to produce iPhones in India, including the iPhone SE and iPhone 6s. When building iPhones in India, Apple is able to avoid import duties placed on imported smartphones and their components. More production in the country also helps Apple meet India's 30 percent local sourcing requirement that would allow Apple to open its own local retail stores.

Production of the iPhone X family in India appears to be part of Apple's revamped India strategy, which also includes better and longer-lasting retail deals with higher sales targets, the opening of official Apple retail stores in India, "overhauling" the company's relationship with independent retailers, and improving apps and services "aimed more closely at Indians." Due to the high price of iPhones in India, and other reasons, Apple has continually struggled in the country, leading to the new strategy.

Article Link: Foxconn to Begin Production on iPhone X in India This July

I believe this Foxconn plant in Chennai,India was used to produce Nokia phones a few years ago before being acquired by Microsoft.
This move will certainly reduce the prices of the higher end iPhones in India making it a huge potential market. It is currently highly priced because of import duties and other taxes. And Apple opening their local retail stores will certainly help change their brand image(currently as a brand whose products only the rich can afford).

 

[Baymowe335]

But still outperforms the iPhone X because Apple always cuts corners on RAM
[doublepost=1555090923][/doublepost]

Depends whether you consider working unhealthy hours for unliveable wages to be a "skill"

You mean the extra RAM they don't need because their OS is more efficient? The X is going on 2 years old and still performs great, particularly with iOS12.

 

[Defthand]

Wait.... so they can build an iphone in India, but not in the United States???

You and I know the real reason. What makes me dislike and distrust Cook is his phony excuses. I won't forget his claim that America's machinists lack the skills to manufacture the iPhone! Yet India's do? Right, like India's **** computer science graduates who India's employers have to re-educate inhouse.

 

[dampfnudel]

I think it's pricing and strategy. It's easy to say the pricing is too high for the market, cuz it is. Even Cook says so. Apple's gradually lowering pricing to help address the issue. The strategy issue was Apple's biggest misstep in my opinion. They approached India with the same strategy they'd approach any other market. Basically, "we're Apple and we want to do A, B, and C so we're going to need you to do X, Y, and Z so we can get this ball rollin' P, D, and Q. India said: 1. Kick rocks. 2. You will be required to do what all other foreign vendors are required to do or 3. see 1.

Instead of going against the grain and trying to do things their way, Apple is now going with the grain. I think the goal is to position itself to get Apple store in India. To do that, they're going to have to tow the line.

I wish Apple would go with the grain in the US and Europe as well.

 

[Analog Kid]

I don't understand why Apple fails in the India market at all.. is it their prices?

India seems to be pretty open to western culture as a whole.. you would think Apple would have an easier time in that market than China.

I think India has some protections on accessing their market. I'd have to look up the details, but I'm sure someone around here knows better.

I think they've been pushing to get more stuff "made in India". Traditionally India has been a software power, and I think they're trying to build a manufacturing base to compete with China.

 

[jonnysods]

Still going to be hard to compete at their price points. I thought they would go the XR route, seems less luxurious. Or a polycarbonate XR for better reception and cheapness.

 

[J.Dillinger]

I don't understand why Apple fails in the India market at all.. is it their prices?

India seems to be pretty open to western culture as a whole.. you would think Apple would have an easier time in that market than China.

Ever been to India?

 

[justperry]

The Indian market is important for Apple.

Silly comment, all markets are important to Apple.

India is a difficult one though, few people out of the 1.4 billion (almost) can afford one, and then there's cheaper alternatives which do much the same.
Don't get me wrong though, I like me iPhone.

 

[Baymowe335]

Silly comment, all markets are important to Apple.

India is a difficult one though, few people out of the 1.4 billion (almost) can afford one, and then there's cheaper alternatives which do much the same.
Don't get me wrong though, I like me iPhone.

No, the Indian market is more important than many others and particularly because of growth opportunity.

China is a huge market despite being the home of phones that can compete. Same thing can happen in China. People like iPhones and Apple. When they have money, they want Apple. Luxury, aspirational brand.

 

[justperry]

It's a 3rd world country. Only the uber rich can afford iPhones there.

Yup, Apple and many others fail to see this, there's also this, there are just to many people in India and the cake is not big enough to make a decent living for most.

I see this in more countries, I lived in Indonesia for about 8 years, similar problems although culture difference is huge.

No, the Indian market is more important than many others and particularly because of growth opportunity.

Then you should have said it differently in your OP.

Like

The Indian market is more important for Apple.

 

[Baymowe335]

Yup, Apple and many others fail to see this, there's also this, there are just to many people in India and the cake is not big enough to make a decent living for most.

I see this in more countries, I lived in Indonesia for about 8 years, similar problems although culture difference is huge.




Then you should have said it differently in your OP.

Like

The Indian market is more important for Apple.

No, it was fine.

 

[rrm74001]

Tim is absolutely desperate to not spend a single cent on a new design.

It's a big touch screen on the front, and a camera/logo on the back. Just like the original iPhone, and every phone thereafter. We barely even have bezels anymore. What drastic design changes are you wanting at this point?

Or do you just want change for the sake of change?

 

[citysnaps]

Tim only wants processors to advance because he hopes to kill off computers as soon as possible. Then everything must go through the App Store and he gets his cut.

That is so adorable. And of course the reason why Apple is investing heavily in developing computer CPUs in-house. So that they can kill off computers. Sounds legit.

 

[kstotlani]

Does anyone know if this will lower the import tax and duty for iPhone sold in India? ( It is one of the reason why Apple's product in India are one of the most expensive in the world )

I am not well versed on the situation in India.

It’s not just Apple products but all foreign products have really high import duty in India. A product completely built in a different country has the maximum tax followed by a product assembled in India but parts built in a different country then finally if the product is completely built in India it will attract the normal taxes that all products do.

There was a time when the first category would be taxed 400% but now it can vary from 60-100% tax. I think Trump was complaining about Harley’s taxed at 60%.

 

[zombierunner]

Btw Chennai (formerly Madras) is in South India, not East as mentioned in the article.

 

[ilikewhey]

No, the Indian market is more important than many others and particularly because of growth opportunity.

China is a huge market despite being the home of phones that can compete. Same thing can happen in China. People like iPhones and Apple. When they have money, they want Apple. Luxury, aspirational brand.

not after the whole huawei fiasco, now the mentality is to dismiss iphone owners as anti patriot.

 

[The_kerse]

Welcome back Fall 2017. We've missed you.

I thought the same thing Fall 2018...

 

[JosephAW]

Good. When can I order an X at India prices?

 

[fairuz]

I don't understand why Apple fails in the India market at all.. is it their prices?

India seems to be pretty open to western culture as a whole.. you would think Apple would have an easier time in that market than China.

Of all the first-gen Indian-Americans I know, of which there are many and all of whom have money to spare, only one has an iPhone. And the rest are unusually attached to Android. I know they aren't an accurate representation of people in India, but it's the best I've got.
[doublepost=1555126170][/doublepost]

But still outperforms the iPhone X because Apple always cuts corners on RAM

Apple also "cuts corners" on RAM consumption, haha. I've never seen an iPhone slow due to apparent RAM exhaustion. It's not a problem.
[doublepost=1555126664][/doublepost]

You and I know the real reason. What makes me dislike and distrust Cook is his phony excuses. I won't forget his claim that America's machinists lack the skills to manufacture the iPhone! Yet India's do? Right, like India's s**t computer science graduates who India's employers have to re-educate inhouse.

Computer science has nothing to do with assembling phones. I'd also say India is the better place for it. Funny enough, the US seems to be experiencing a labor shortage right now. Unemployment is very low, not including people "unable" to work.

As for electrical engineering, the US is good at it, but it's not a hot topic here like it is in India. And it still probably doesn't matter if you're just assembling phones.
[doublepost=1555126830][/doublepost]

The Indian market is important for Apple.

Too bad they won't get into it. It's already saturated with Android phones. China won't budge either.

 

[Baymowe335]

Of all the first-gen Indian-Americans I know, of which there are many and all of whom have money to spare, only one has an iPhone. And the rest are unusually attached to Android. I know they aren't an accurate representation of people in India, but it's the best I've got.
[doublepost=1555126170][/doublepost]
Apple also "cuts corners" on RAM consumption, haha. I've never seen an iPhone slow due to apparent RAM exhaustion. It's not a problem.
[doublepost=1555126664][/doublepost]
Computer science has nothing to do with assembling phones. I'd also say India is the better place for it. Funny enough, the US seems to be experiencing a labor shortage right now. Unemployment is very low, not including people "unable" to work.

As for electrical engineering, the US is good at it, but it's not a hot topic here like it is in India. And it still probably doesn't matter if you're just assembling phones.
[doublepost=1555126830][/doublepost]
Too bad they won't get into it. It's already saturated with Android phones. China won't budge either.

Apple has an enormous business in China at over $13B...bigger than most companies’ entire revenue line.

 

[pratikindia]

I don't understand why Apple fails in the India market at all.. is it their prices?

India seems to be pretty open to western culture as a whole.. you would think Apple would have an easier time in that market than China.

Multiple reasons. Price, Services and VFM attitude of Indians. It's too expensive for most people to buy. For example the for the price of one XS Max 512, you can get 2 Samsung Note 9 512 GB and still have some money left. The recent price cut on XR might help them fight with Samsung. Apple services have no value in India. Maps, Siri and many other apps are useless. Maps is outdated and does not offer directions. Siri cannot understand accents and lot more. And one of the most ridiculous thing is 150 MB download limit on cellular data. Data is very very cheap and Apple forces you to download via WiFi which is not available everywhere. Indian market is price conscious. Most people see value for money factor in buying everything. Why pay 2-3 times more for an iPhone when much cheaper One Plus or other flagship phones are available?