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Apple supplier Foxconn plans to invest $1 billion in India to expand a factory that assembles iPhones, reports Reuters.

foxconn.jpg

One source told Reuters that Apple has been pushing Foxconn and other suppliers to move production outside of China. The move will ultimately help the company in diversifying its supply chain in an effort to reduce its reliance on Chinese manufacturing amidst the ongoing trade war between China and the United States.

Foxconn's investment is being made in the Sriperumbudur plant, which is responsible for producing some iPhone XR models. The improvements, which will take place over three years, include the addition of 6,000 new jobs and the production of other iPhone models in the plant.

Should Apple's supply chain expansion into India prove successful, the company may begin using the country as an "export hub."
With India’s labour cheaper compared with China, and the gradual expansion of its supplier base here, Apple will be able to use the country as an export hub,” Neil Shah of Hong Kong-based tech researcher Counterpoint said.
Apple is rumored to be expanding its presence in India by introducing an online Apple Store in the third quarter of 2020. The company is also reportedly working on opening retail locations in the country beginning with a store in Mumbai.

Article Link: Foxconn to Invest $1 Billion in India Amid Strong Push From Apple
 
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mannyvel

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Supply chain diversification: it's not just a good idea, it's the prudent thing to do, especially if you have the money to do so.

One day the PRC will collapse, the way governments in China do. The CCP can't avoid the wheel of history. Apple needs to ensure it can survive that event.
 
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jayducharme

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Jun 22, 2006
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The thick of it
It's not how much the iPhones actually cost in India but rather how much people want them. Just as in the US, if Apple is perceived to be a luxury brand in India, then the people who can afford iPhones will buy them and others won't. But this move seems to be less about selling to the Indian market and more about strengthening their global supply chain. Since Apple needs to make their products in India to sell to that market anyway, it's a win-win.
 
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ian87w

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Feb 22, 2020
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iphone still too expensive for the avg indian consumer, especially when huawei and chinese brands cost half or even 1/3 as much.
In Indonesia, iPhones are marked up 20 - 30% more expensive than US MSRP. Yet it doesn't stop people from buying them. Sure, the majority of people wouldn't be able to afford it, but doesn't mean people don't want it. It's a luxury item, akin to branded watches/bags. No matter how expensive they are, any country will have that top 1% who can afford it.

Besides, by doing this, Apple can save the cost of import tariffs in India.
 
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mi7chy

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Oct 24, 2014
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Foxconn is a Chinese company. So the profits will still go to the PRC, even if the assembly line jobs go to India.

Check your facts. Foxconn is a Taiwanese company and founded by a Taiwanese. Just because they have facilities elsewhere in the world doesn't change that.

https://en.wikipedia.org/wiki/Foxconn

This is an opportunity for India. Hope they make the most of it.
 
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ghanwani

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Dec 8, 2008
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Independence from Chinese manufacturing is like a Hollywood romance. It sounds great in practice and everyone wants it, but it's never happening in real life. Not with iPhones, not with anything else.

As the fed's policies continue to bankrupt companies all around the world by destroying the productive economy and encouraging risky financial engineering, there will be no choice but to go to China for all production.

Don't look at what Foxconn is investing in India. My guess is that is being done mainly to get around Indian laws that otherwise make it difficult for Apple to grow sales and/or own stores in India.

Instead, look at Foxconn's continued investment in China. Let's also talk about how the Wisconsin experiment is working out.
 
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mtneer

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What are the chances of some of the production moving to Pakistan or Bangladesh?
 
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rebateProcessing

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Jan 4, 2018
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The government there is too unstable.
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Wrong. It's a Taiwanese mutinational company.

Not necessarily wrong. The official name of Taiwan is "Republic of China" although some may not like this name. Their CEO used to be a member of Kuomintang, which is a pro Beijing party. Also Foxconn has more factories and employees in P.R China than any other country. So...
 
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DeepIn2U

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May 30, 2002
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Check your facts. Foxconn is a Taiwanese company and founded by a Taiwanese. Just because they have facilities elsewhere in the world doesn't change that.

https://en.wikipedia.org/wiki/Foxconn

This is an opportunity for India. Hope they make the most of it.

India has the populace ... and a similar government mindset that wishes to bring back upper technology citizens home. India's technology industry could really benefit and learn from Foxconn plants and build their own and heavily market to global players like Sony, Samsung, Apple, etc. Then become a real competitor against China plants for mobile assembly. Then move onto chip design and manufacturing or RAM?

Would be a nice global shift to be honest.
 
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mannyvel

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You might have to wait for a bit for the PRC to collapse if you are going by the wheels of history. Most Chinese dynasties last between 200 to 400 years.

The PRC as we know it today has only been around since Deng, about 40 years. The Mao era only lasted for about 40 years. The last republic was only about 40 years. Their cycles are getting shorter. The PRC today isn't the same as the one back then.

What's bad for the PRC is that they wiped out a generation of dissenters in the cultural revolution and new ones grew from scratch. They multiply with every generation. Back in the old days it was easier to keep a lid on everything because information didn't move quickly. Today, you can hear the rumblings every week. People are asking whether the party served the people or themselves. Not a lot of people are saying that out loud, but the idea is floating out there.

The greatest thing the PRC did was to get the West to use the name "China." It provides the illusion of continuity. But the China of old isn't the China of today. It is not an entity that is thousands of years old. In fact, Communist China repudiated old China...until it was decided Old China was useful for social control purposes.

In any case, being all-in in China would be a bad bet right now.
 
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WoodpeckerBaby

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Aug 17, 2016
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Foxconn is a Chinese company. So the profits will still go to the PRC, even if the assembly line jobs go to India.

Headquarters: Tucheng District, Taipei, Taiwan

So, it's actually a Taiwan company, not a Mainland China company. There is still a fiscal difference.
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Apple will build a factory here in the United States when the entire assembly line and everything can be ran by robots
Then what's the point lol. It's the states, Engineers, and power plant shareholders making the buck.
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India has the populace ... and a similar government mindset that wishes to bring back upper technology citizens home. India's technology industry could really benefit and learn from Foxconn plants and build their own and heavily market to global players like Sony, Samsung, Apple, etc. Then become a real competitor against China plants for mobile assembly. Then move onto chip design and manufacturing or RAM?

Would be a nice global shift, to be honest.
Probably not. India is a pile of sand. The rich, the privileged and the smarts are all leaving India in droves.
 
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