Apple meeting with India government 'constructive,' iPhone manufacture 'almost a done deal...

Posted:
in iPhone edited January 2017
Apple's meeting with Indian government officials on Wednesday -- aimed at setting up local iPhone manufacturing -- was a "constructive and open dialogue," the company claimed in a statement.




"We've been working hard to develop our operations in India," an Apple representative informed Reuters. "We appreciate the constructive and open dialogue we've had with government about further expanding our local operations."

Apple didn't provide any more details on the meeting, but previous reports indicated the company was set to talk to members of several government departments about a "wish list" of concessions. These include a 15-year tax holiday on imported components and equipment, and/or many waivers on import duties.

Apple's position is said to be flexible however, which may be critical given suggestions that some in Indian government are resistant to offering any special handouts. If the company does get assistance, it could be in the form of industry-wide measures that help rivals like Samsung and Xiaomi as well.

Wistron has allegedly been picked as Apple's first Indian manufacturer, and could even be set to help build 2017 iPhone models. If so Apple may not have much room for government negotiations, given the need to start production months ahead of the usual September launch window.

Other manufacturing partners like Foxconn could join in later production efforts, but Wistron is allegedly planning to make use of an existing facility in Bangalore, whereas Foxconn has yet to build its first Indian factory.

Update: A manufacturing arrangement is "almost a done deal," according to a government source for the Wall Street Journal, who added that the Finance Ministry will "look into" Apple's demands, calling many of them "workable." A separate person, said to work close to Prime Minister Narendra Modi, claimed the government's plan is to "settle with Apple."

The Journal noted that Apple's negotiation team was led by a VP, Priya Balasubramaniam, and met with officials in the capital, New Delhi.

Comments

  • Reply 1 of 12
    melgrossmelgross Posts: 31,907member
    When talks re labeled as "constructive" or "frank", it simply means that the two sides agreed on almost nothing, but that they made their positions clear. Hopefully, something will come of this, considering the Chinese government's attitude towards foreign firms the past few years with this new president there.
    SpamSandwich
  • Reply 2 of 12
    gatorguygatorguy Posts: 21,117member
    sog35 said:
    India just has to look at how the iPhone has helped the Chinese economy.  

    Apple alone produces over 5 million jobs in China - manufactering, retail, app developing, ect
    @sog35 ;;; Since it's obvious Apple means to sell iPhones and open stores in the India marketplace why should India give them a handout (so to speak), to do what they were going to do anyway? I wasn't aware China gave Apple any special concessions, if anything it's been the other way around of late, tho some of the Chinese companies building smartphones (ie HonHai) get some government assistance....
    perhaps more than we're even aware of :/

    edited January 2017
  • Reply 3 of 12
    gatorguygatorguy Posts: 21,117member
    FWIW the WSJ is reporting that after the meetings yesterday manufacturing in India is pretty much a done deal. Oddly different stories....
  • Reply 4 of 12
    India may be a good very long play for Apple, but the country is such a mess politically, also with regard to infrastructure, and certainly in terms of per household earnings... if Apple plans on competing based on price, they won't win there.
  • Reply 5 of 12
    mwhitemwhite Posts: 206member
    Hey Sog35 look at the stock today I am sure you are liking it :D

    edited January 2017
  • Reply 6 of 12
    Rayz2016Rayz2016 Posts: 4,768member
    India may be a good very long play for Apple, but the country is such a mess politically, also with regard to infrastructure, and certainly in terms of per household earnings... if Apple plans on competing based on price, they won't win there.
    I imagine that's why they want the concessions. 
  • Reply 7 of 12
    gatorguygatorguy Posts: 21,117member
    Rayz2016 said:
    India may be a good very long play for Apple, but the country is such a mess politically, also with regard to infrastructure, and certainly in terms of per household earnings... if Apple plans on competing based on price, they won't win there.
    I imagine that's why they want the concessions. 
    Other smartphone manufacturers who clearly have lower margins than Apple have set up factories in India so they could directly sell their products there. Why is this a problem for Apple, and why "special concessions" not available to all? They'll obviously make more profit per handset sold than other sellers anyway even without any special breaks.

    Not at all saying Apple is bad to ask, but as a taxpayer myself these "special tax breaks" that confer more far more benefit to the already wealthy than the working class need to end for the most part IMHO. Where's the middle class "special concessions"? If majority should rule as supporters of a certain losing Presidential candidate claim....
    edited January 2017
  • Reply 8 of 12
    tmaytmay Posts: 3,954member
    gatorguy said:
    Rayz2016 said:
    India may be a good very long play for Apple, but the country is such a mess politically, also with regard to infrastructure, and certainly in terms of per household earnings... if Apple plans on competing based on price, they won't win there.
    I imagine that's why they want the concessions. 
    Other smartphone manufacturers who clearly have lower margins than Apple have set up factories in India so they could directly sell their products there. Why is this a problem for Apple, and why "special concessions" not available to all? They'll obviously make more profit per handset sold than other sellers anyway even without any special breaks.

    Not at all saying Apple is bad to ask, but as a taxpayer myself these "special tax breaks" that confer more far more benefit to the already wealthy than the working class need to end for the most part IMHO. Where's the middle class "special concessions"? If majority should rule as supporters of a certain losing Presidential candidate claim....
    Thanks to "special tax breaks", location, and the fact that then Texas Governor Rick Perry wouldn't do anything to allow Tesla to sell cars without a physical dealership, my neck of the woods has a rather massive Panasonic/Tesla battery manufacturing facility and what will also be the facility for assembling the rolling chassis for Tesla X3's. All else being equal, I'd rather be getting jobs in a vibrant and growing industry (EV technology) than jobs in resource extraction (mining) albeit both are highly valued here in Nevada.

    Just about every level of government entity does incentives for business, and for businesses to relocate. Distribution of wealth is essentially controlled by the same entities, ultimately at the whim of those that vote. 
    edited January 2017
  • Reply 9 of 12
    gatorguygatorguy Posts: 21,117member
    tmay said:
    gatorguy said:
    Rayz2016 said:
    India may be a good very long play for Apple, but the country is such a mess politically, also with regard to infrastructure, and certainly in terms of per household earnings... if Apple plans on competing based on price, they won't win there.
    I imagine that's why they want the concessions. 
    Other smartphone manufacturers who clearly have lower margins than Apple have set up factories in India so they could directly sell their products there. Why is this a problem for Apple, and why "special concessions" not available to all? They'll obviously make more profit per handset sold than other sellers anyway even without any special breaks.

    Not at all saying Apple is bad to ask, but as a taxpayer myself these "special tax breaks" that confer more far more benefit to the already wealthy than the working class need to end for the most part IMHO. Where's the middle class "special concessions"? If majority should rule as supporters of a certain losing Presidential candidate claim....
    Thanks to "special tax breaks", location, and the fact that then Texas Governor Rick Perry wouldn't do anything to allow Tesla to sell cars without a physical dealership, my neck of the woods has a rather massive Panasonic/Tesla battery manufacturing facility and what will also be the facility for assembling the rolling chassis for Tesla X3's. All else being equal, I'd rather be getting jobs in a vibrant and growing industry (EV technology) than jobs in resource extraction (mining) albeit both are highly valued here in Nevada.

    Just about every level of government entity does incentives for business, and for businesses to relocate. Distribution of wealth is essentially controlled by the same entities, ultimately at the whim of those that vote. 
    If no one offered "special deals" businesses would locate wherever it made business sense to do so. In the case of Apple they'll go to India because it's profitable to do so., not because of special incentives. The specials are just icing for the cake they putting in the oven anyway.
  • Reply 10 of 12
    gatorguygatorguy Posts: 21,117member
    sog35 said:
    gatorguy said:
    Rayz2016 said:
    India may be a good very long play for Apple, but the country is such a mess politically, also with regard to infrastructure, and certainly in terms of per household earnings... if Apple plans on competing based on price, they won't win there.
    I imagine that's why they want the concessions. 
    Other smartphone manufacturers who clearly have lower margins than Apple have set up factories in India so they could directly sell their products there. Why is this a problem for Apple, and why "special concessions" not available to all? They'll obviously make more profit per handset sold than other sellers anyway even without any special breaks.

    Not at all saying Apple is bad to ask, but as a taxpayer myself these "special tax breaks" that confer more far more benefit to the already wealthy than the working class need to end for the most part IMHO. Where's the middle class "special concessions"? If majority should rule as supporters of a certain losing Presidential candidate claim....
    The government does not have to say Yes.

    its obvious that Apple offers something those cheap shit companies don't.

    Both the state and Apple are looking for their best interest. And thats why deals get done. No one is forced to do anything.

    But of course you are here to berate Apple again. Like always.
    So you can't logically explain it. Fair enough. 
  • Reply 11 of 12
    SoliSoli Posts: 9,276member
    sog35 said:
    I've been ultra critical of Cook in the past.

    But i gotta admit. This fucker really knows how to close deals:

    China Mobile
    Japan DocoMo
    Deals with IBM
    Deals with component makers
    Now India

    friken Cook is a boss at closing deals.
    Weren't you calling for Cook's head on a platter just a couple weeks ago and since he took over as CEO?
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