Apple may take a bigger bite of India's manufacturing pie

[Nilgiri]

Translated, internal financial analysis of Foxconn

You got a link to this?

 

[EasyNow]

I am sorry to say this but Indian manufacturing is nowhere not ready for high end consumer products. Outside of medicine and software, there is not a single thing that India is able to make to a world class standard. The culture of quality, perfectionism and aesthetics are not there.

I recently bought furniture from a UK brand, Atkins and thyme, paid quite a bit for 2 small tables. To my surprise they were made in India and I was pleased by that. Within 1 month the laminate was peeling off the mirror finish. When I complained, I was given a full refund and told that they had a problem with the entire batch.

BD is not much better, but at least in Garments we can claim to produce world class products such as Timberland boots.

Tbh Pakistan is ahead of all three countries in terms of attention to quality. I have a pair of my dad's Gillette scissors, probably 40 years old, made in Pakistan and they are absolutely perfect to this day.

 

[Nilgiri]

Thank you countries and opinions that matter!

Its fun doing stuff that LDC's never will get to do (with no special 0% LDC tariff dependency) ....almost as funny as LDC'er feedback.

0 , 1, 2 patents a year at USPTO...back to zero....progress stronk...quality stuff.

 

[xuxu1457]

You got a link to this?

It's an open secret that if you Google 富士康 印度
https://www.36kr.com/p/5284123

 

[xeuss]

It's an open secret that if you Google 富士康 印度
https://www.36kr.com/p/5284123
View attachment 631580

Interesting to note that imposition of tariffs leads to setting up of domestic manufacturing

 

[BL33D]

Interesting to note that imposition of tariffs leads to setting up of domestic manufacturing

To keep the products in the markets competitive.

 

[rishav]

It's an open secret that if you Google 富士康 印度
https://www.36kr.com/p/5284123
View attachment 631580

So apple assembles in only 4 countries ?

 

[mmr]

Interesting to note that imposition of tariffs leads to setting up of domestic manufacturing

World is haeding toward in that direction. Where every country will try to curb import and set up local manufactruing. Specially items like cell phone where you can force foreign companies to set up local plant just for domestic consumption.

If USA unemployment remain 14 percent and service sectors jobs dont come back they will have to bring some manufactring back to usa from china. There will be many more news like the below where USA will do best to create manufactring jobs.

https://www.wsj.com/articles/trump-...ek-semiconductor-self-sufficiency-11589103002

same with pharma.

https://www.irishcentral.com/news/politics/trump-pharmaceuticals-usa-ireland

List will only grow.

I suspect western europe and canada will follow same suit.

 

[xuxu1457]

So apple assembles in only 4 countries ?

Yes, but Foxconn plans to open an assembly plant in Vietnam, mainly for export to the United States.Vietnam is very close to Shenzhen, the industrial chain of Apple.Imported components can be assembled and exported in Vietnam to avoid the impact of the trade war.
Vietnam imported $75 billion from China in 2019, mostly components and semi-finished products, assembled in Vietnam or directly replaced by the logo made in Vietnam.

 

[rishav]

Vietnam imported $75 billion from China in 2019,

Wow that is more than what India imports from china ! Vietnam being much smaller

Yes, but Foxconn plans to open an assembly plant in Vietnam, mainly for export to the United States.Vietnam is very close to Shenzhen, the industrial chain of Apple.Imported components can be assembled and exported in Vietnam to avoid the impact of the trade war.
Vietnam imported $75 billion from China in 2019, mostly components and semi-finished products, assembled in Vietnam or directly replaced by the logo made in Vietnam.

So if apple has 3 assembly plants in India , what stops them from opening lets say 3 more plants ?
Given that those 3 plants have come up in last 4 years .

 

[xuxu1457]

Wow that is more than what India imports from china ! Vietnam being much smaller


So if apple has 3 assembly plants in India , what stops them from opening lets say 3 more plants ?
Given that those 3 plants have come up in last 4 years .

Yes, Apple currently sells $1.5 billion in India, but only $500 million is made there，Meanwhile, in China, apple produces more than 200 billion dollars a year..
Modi in 2019 met with executives at Samsung and Apple，Discuss the possibility of expanding production in India
India will offer tax breaks and a production incentive program that will give apple contract manufacturers a cash bonus of 4-6% of sales over five years.Apple has also been hoping to avoid putting all its eggs in China.
But at present, even if Vietnam and India expand their assembly plants, they will only become part of the Chinese production chain and still need to import components from China for assembly. At present, 49% of all Apple's components come from Chinese enterprises, and the rest come from the coms ofUnited States, Japan, South Korea and so on.And most the components are produced in China, no matter which country's enterprises.

 

[Type59]

India has high tariffs and has continously increased them despite promoting free trade. The world has taken notice, especially Trump. "Selective free trade" wont work.

To keep the products in the markets competitive.

Are you implying tariffs make indian companies competitive? High tariffs are usually counter productive. Countries with large populations will naturally attract industries to cater for domestic population. Thats an advantage india like china has. As stated before free trade is a two way street. Cant have selective free trade.

 

[BL33D]

India has high tariffs and has continously increased them despite promoting free trade. The world has taken notice, especially Trump. "Selective free trade" wont work.



Are you implying tariffs make indian companies competitive? High tariffs are usually counter productive. Countries with large populations will naturally attract industries to cater for domestic population. Thats an advantage india like china has. As stated before free trade is a two way street. Cant have selective free trade.

Jeez, I meant imposing tariff on imported items pushes companies to localize a percentage of the product. That is why India was able to have on assembly of Apple. It has worked for setting up several mobile manufacturing units in India. But to truly shift the manufacturing base tariffs + incentives are needed.

As stated before free trade is a two way street. Cant have selective free trade.

Remember how India had given MFN status to a certain country for years without them reciprocating. Free trades are pretty hard to negotiate and years into the deal, with changing economic dynamics, the agreements become difficult to keep up. Thats why RCEP was such a tough negotiation.

 

[Nilgiri]

It's an open secret that if you Google 富士康 印度
https://www.36kr.com/p/5284123
View attachment 631580

https://www.firstpost.com/tech/news...of-5-billion-investment-in-india-7879691.html

https://9to5mac.com/2020/01/07/foxccon-refutes-reports-of-india-cancelation/

 

[xuxu1457]

https://www.firstpost.com/tech/news...of-5-billion-investment-in-india-7879691.html

https://9to5mac.com/2020/01/07/foxccon-refutes-reports-of-india-cancelation/

They do have a lot of problems, and they haven't completed the $5 billion investment in five years.