Indian Government 'Very Happy' to Help Apple Expand Local iPhone Assembly Base

[MacRumors]

A cabinet minister of the government of India has given the clearest signal yet that the republic is ready to help Apple expand its iPhone manufacturing base in the country and consider its requests for concessions.

Commerce and industry minister Suresh Prabhu was quoted on Sunday by the India Economic Times as saying the state was "very happy" to help Apple in its aims, provided the company makes a formal proposal.

"Let us get a good proposal from them...We will be very happy to receive Apple, one of the top brands in the world. We are willing to find out if there is any difficulty they may face. We will be more than happy to resolve that difficulty. So we will await a formal proposal," Prabhu told PTI in an interview.

Prabhu also reportedly said he was open to calling all state chief ministers who are willing to give Apple the best deal.

The comments come at an important time for Apple as it seeks to expand its manufacturing base in the country. The company has asked state officials for a range of tax and policy changes to help build out its iPhone assembly infrastructure in India, including duty exemptions on components, capital equipment, and consumables for all iPhone assembly and services/repairs for a period of 15 years.

Apple also wants the Indian government to relax rules that require 30 percent of products sold by foreign companies to be manufactured or produced within the country.

iPhone SE handsets have been assembled in India since May by Apple's Taiwanese supplier Wistron, which has reportedly been scouting for additional land in Bangalore to expand its existing facilities. Additionally, a report last week claimed the tentatively named iPhone SE 2 will be assembled exclusively by Wistron at its factories in India.

India recently overtook the U.S. to become the world's second largest smartphone market after China, according to market research conducted by industry analyst Canalys. However, Apple has so far struggled to make a significant dent, mainly because the government levies tariffs on devices manufactured outside the country, but also due to Chinese rivals such as Oppo and Xiaomi offering consumers more affordable high-spec smartphones.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Indian Government 'Very Happy' to Help Apple Expand Local iPhone Assembly Base

 

[Aniruddh]

It would be great if they can reach to the terms so as to allow manufacturing flagship iPhones. The current price is almost >150% of what it is in US.

 

[joueboy]

Apple is only doing this so that they can sell those old refurbished iPhones in India. At first Indian government wont allow it unless Apple will have a manufacturing in India. We’ll see how big this is in India and I think this factory is not even close to the one they have in China. They might just have those assembly there enough to produce iPhone for India and drop the old junks in their country.

 

[Aniruddh]

Apple is only doing this so that they can sell those old refurbished iPhones in India. At first Indian government wont allow it unless Apple will have a manufacturing in India. We’ll see how big this is in India and I think this factory is not even close to the one they have in China. They might just have those assembly there enough to produce iPhone for India and drop the old junks in their country.

Even the manufacturing in the country, the government won't allow selling refurbished phones.

 

[Aluminum213]

I respect India for strong arming Apple and forcing them to build a factory and produce the product there if they want to sell iPhones in that country

America could use a backbone

 

[Avieshek]

By what originally Apple played with their demands, they get to import refurbished iPhone 7 shells (the latest of that time followed by future flagships as well) assemble & sell them here in India with the excuse Apple manufactures something like iPhone 5 (or 5s, SE) with the concession also being same across all their lineup & upcoming and not limited by what they particularly choose to manufacture since they all are iPhones. The quantity and model they manufacture shouldn't be considered with what they will sell.

As for the Politician, it's election time in Gujarat. Ignore the sweet words.

 

[Aniruddh]

By what originally Apple wants, Apple manufacturers or assembles old models like iPhone 5 (or 5s) and bring the second-hand-used (refurbished) iPhone 7 shells (the latest model of the time) to India.

Government has already turned down that request so that's not happening.

 

[2010mini]

I respect India for strong arming Apple and forcing them to build a factory and produce the product there if they want to sell iPhones in that country

America could use a backbone

America chose to offshore low skilled labour. In return they were suppose to use the money saved on infrastructure, education, research and development etc..... instead we squandered billions on stupid wars.

 

[69Mustang]

America chose to offshore low skilled labour. In return they were suppose to use the money saved on infrastructure, education, research and development etc..... instead we squandered billions on stupid wars.

You are conflating the US Government and private industry into one giant entity. The government didn't chose to offshore low skilled labor. That was, and still is private industry. Private industry is not responsible for education or infrastructure in the US. That was, and still is the government. Stupid wars are a partnership between govt and private sector, but that has nothing to do with offshore manufacturing.

 

[macintoshmac]

Apple is only doing this so that they can sell those old refurbished iPhones in India. They might just have those assembly there enough to produce iPhone for India and drop the old junks in their country.

As your fellow contributor to the population of the world, your reaction ( ) seems rather odd. Why would you appreciate Apple dropping old junk in any country?

 

[Billrey]

You are conflating the US Government and private industry into one giant entity. The government didn't chose to offshore low skilled labor. That was, and still is private industry. Private industry is not responsible for education or infrastructure in the US. That was, and still is the government. Stupid wars are a partnership between govt and private sector, but that has nothing to do with offshore manufacturing.

No, it’s not that simple. The US instated several laws that made offshore production easier. They helped pit workers from various countries against each other by introducing various trade deals. This has been disastrous for US workers, middle class wages and unions that have been largely eradicated by crony capitalist administrations.

 

[2010mini]

You are conflating the US Government and private industry into one giant entity. The government didn't chose to offshore low skilled labor. That was, and still is private industry. Private industry is not responsible for education or infrastructure in the US. That was, and still is the government. Stupid wars are a partnership between govt and private sector, but that has nothing to do with offshore manufacturing.

Actually it is a “partnership” between govt and private sector that got us to the state we are in. Nothing happens in a vacuum.

 

[69Mustang]

No, it’s not that simple. The US instated several laws that made offshore production easier. They helped pit workers from various countries against each other by introducing various trade deals. This has been disastrous for US workers, middle class wages and unions that have been largely eradicated by crony capitalist administrations.

You missed my point entirely. I'm not claiming simplicity. I am claiming 2010mini can't conflate all of those things in his original quote as one singular issue, and definitely can't conflate spending money on wars with companies manufacturing overseas. It defies logic.

Actually it is a “partnership” between govt and private sector that got us to the state we are in. Nothing happens in a vacuum.

True, that partnership did get us where we are today. But what you said in the previous comment... it makes no sense. It's rhetoric that doesn't stand up to scrutiny.

 

[cloudness]

You are conflating the US Government and private industry into one giant entity. The government didn't chose to offshore low skilled labor. That was, and still is private industry. Private industry is not responsible for education or infrastructure in the US. That was, and still is the government. Stupid wars are a partnership between govt and private sector, but that has nothing to do with offshore manufacturing.

Let's not forget the third culprit of the whole problem: the people themselves. People around the world don't want iPhones if they're too expensive, and American people are not ready to work low-skilled labor with proportionate low wages.

 

[gnipgnop]

India is the Plan B in case China becomes too hostile under Xi.

 

[2010mini]

You are conflating the US Government and private industry into one giant entity. The government didn't chose to offshore low skilled labor. That was, and still is private industry. Private industry is not responsible for education or infrastructure in the US. That was, and still is the government. Stupid wars are a partnership between govt and private sector, but that has nothing to do with offshore manufacturing.

Actually

You missed my point entirely. I'm not claiming simplicity. I am claiming 2010mini can't conflate all of those things in his original quote as one singular issue, and definitely can't conflate spending money on wars with companies manufacturing overseas. It defies logic.


True, that partnership did get us where we are today. But what you said in the previous comment... it makes no sense. It's rhetoric that doesn't stand up to scrutiny.

I think you misunderstood me. The payoff for gov’t changing the rules on import duties. Or for tax breaks for companies offshoring lower unskilled Jobs was more profits to spend on R&D, new business investments, infrastructure... etc. instead we started investing in Wall Street and wasting money in wars. (Forgot to mention Wall Street in my other post. where we basically just made fiat money) but you do get the gist of what I am saying?

It’s not just the govt nor just the corps alone to blame. They both are.

 

[69Mustang]

I think you misunderstood me. The payoff for gov’t changing the rules on import duties. Or for tax breaks for companies offshoring lower unskilled Jobs was more profits to spend on R&D, new business investments, infrastructure... etc. instead we started investing in Wall Street and wasting money in wars. (Forgot to mention Wall Street in my other post. where we basically just made fiat money) but you do get the gist of what I am saying?

It’s not just the govt nor just the corps alone to blame. They both are.

If you can go back to your original quote and come up with an explanation anywhere near your comment above, that would be amazing. Remember, my response introduced the aspect of private industry/companies. Your comment only mentioned the government as if it was responsible for everything you wrote. You wrote this:

America chose to offshore low skilled labour. In return they were suppose to use the money saved on infrastructure, education, research and development etc..... instead we squandered billions on stupid wars.

There's no nuance in that quote. It's all conflated into one America that 1. offshored labor 2. didn't use the money saved from offshore labor on infrastructure, education, or R&D 3. spent money on war. So that I'm clear, my objection wasn't to your reasoning. My objection was to you trying to unify government, business, and if you hadn't forgotten, Wall Street into one entity.

 

[2010mini]

If you can go back to your original quote and come up with an explanation anywhere near your comment above, that would be amazing. Remember, my response introduced the aspect of private industry/companies. Your comment only mentioned the government as if it was responsible for everything you wrote. You wrote this:

There's no nuance in that quote. It's all conflated into one America that 1. offshored labor 2. didn't use the money saved from offshore labor on infrastructure, education, or R&D 3. spent money on war. So that I'm clear, my objection wasn't to your reasoning. My objection was to you trying to unify government, business, and if you hadn't forgotten, Wall Street into one entity.

My apologies. You are correct. I am much better having a discussion face to face rather than typing it out online. Especially while in a rush.

 

[joueboy]

As your fellow contributor to the population of the world, your reaction ( ) seems rather odd. Why would you appreciate Apple dropping old junk in any country?

Funny how you react to the emoji and then you said the reaction was odd. Then you concluded how I appreciate dropping junk to other country. You must have a weird imagination. Only Apple would probably appreciate dropping junk anywhere as long they keep the cash flowing.
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Even the manufacturing in the country, the government won't allow selling refurbished phones.

Are you following the articles about this? When India learned about Apple’s plan to start selling used iToys in their country. The government said Apple is not allowed to sell old junks in thier country unless Apple will build a factory in India. Which makes sense for them because they don’t want their country becoming a dump site for junks old gadgets and it’s also a law in their country. Guess what Apple as being Apple find ways to get through as long it’s legal. Cook announced that they’re building factories in India. So here we go if Apple could just dump get away without building factories there. They probably would do just that and keep the manufacturing in China.