India not likely to cave to Apple's taxation, import law change demands for manufacturing ...

2»

Comments

  • Reply 21 of 25
    adm1 said:
    Yet another example of a government more interested in lining their own pockets instead of creating jobs and developing quality manufacturing infrastructures for future generations.
    You're joking right? this is the exact opposite. A rare occurrence where a government actually stands up to "big-business", not letting a corporate powerhouse do what they please and making them play by the same rules that everyone else has to.
    This is not that, they are being selfish and not thinking of their populous. Manufacturers shouldn't pay tax on components that are planned for export, the manufactured device will be taxed in another country. However, building an infrastructure that builds reputation, supports quality, educates and hires thousands of locals is way more important.
  • Reply 22 of 25
    spice-boy said:

    spice-boy said:
    Government's are not businesses they do not "line their pockets" they collect taxes to ideally take care of the citizen's needs such as eduction, health, etc.... 
    A government is suppose to spend the money it receives from taxes on it's people the way a parent(s) earn money to take care of their family. 
    I have some waterfront property in Arizona in which you might be interested.
    I wonder if your education included civics? http://civicseducationinitiative.org


    It did, in fact. 

    It also included politics and political science, along with economics, mathematics and philosophy.  Your point?

  • Reply 23 of 25
    nhtnht Posts: 4,429member
    spice-boy said:

    spice-boy said:
    Government's are not businesses they do not "line their pockets" they collect taxes to ideally take care of the citizen's needs such as eduction, health, etc.... 
    A government is suppose to spend the money it receives from taxes on it's people the way a parent(s) earn money to take care of their family. 
    I have some waterfront property in Arizona in which you might be interested.
    I wonder if your education included civics? http://civicseducationinitiative.org


    It did, in fact. 

    It also included politics and political science, along with economics, mathematics and philosophy.  Your point?

    I’ve been told that doing business in India is a royal pain in the ass in comparison to China.  There is corruption in both but at least in China the small fry are networked in so once the top officials are happy they leave you alone and business occurs efficiently.  

    In India, according to my business buddies, you get hit for speed money at every level and still nothing gets done.

    The visible macro difference is in China corruption leads to fully constructed cities in the middle of nowhere that nobody lives in but in India corruption results in massively delayed and then cancelled construction projects.  

    For businesses, outcome 1 is better.  Whatever they had to do get their factory approved and built results in a factory that’s actually built...just don’t look too closely at the QC.  Chinese officials are judged on their ability to execute and failed or delayed projects invite scrutiny by your clique’s powerful enemies competing against your top dog and getting caught for corruption can result in execution.
    beowulfschmidt
  • Reply 24 of 25
    gatorguygatorguy Posts: 20,451member
    So today India announced that the import duty on smartphones is being increased from 10% to 15%, with increases on other imported electronics as well (ie TV's now 20% instead of 10%). India's hope is that it will encourage companies to invest in local plant and equipment and jobs in order to maximize profits from selling in their marketplace, a goal of the Made in India Initiative.

    This will definitely impact Apple's profit margin and/or force them to raise already comparatively high iPhone prices there. Apple is at a particularly disadvantage compared to others because very little of what they sell there is built there, as little as 10-12% reportedly. That's quite the opposite of their competition where overall only about 20% of all smartphones sold in India are imported, with companies like Samsung and Xiaomi building nearly all their India market product within India. 

    Apple is going to have a tough time in india for awhile. Should become clearer quite soon whether Apple is truly committed to that marketplace, enough to make major investments in order to be competitive and successful.
  • Reply 25 of 25
    nht said:
    I’ve been told that doing business in India is a royal pain in the ass in comparison to China.  There is corruption in both but at least in China the small fry are networked in so once the top officials are happy they leave you alone and business occurs efficiently.  

    In India, according to my business buddies, you get hit for speed money at every level and still nothing gets done.

    The visible macro difference is in China corruption leads to fully constructed cities in the middle of nowhere that nobody lives in but in India corruption results in massively delayed and then cancelled construction projects.  

    For businesses, outcome 1 is better.  Whatever they had to do get their factory approved and built results in a factory that’s actually built...just don’t look too closely at the QC.  Chinese officials are judged on their ability to execute and failed or delayed projects invite scrutiny by your clique’s powerful enemies competing against your top dog and getting caught for corruption can result in execution.

    Indeed.  Robert A. Heinlein is quoted as saying that an honest politician is one who stays bought.  I'm sure he's not the first to express that sentiment, but he was the first from whom I heard it. :)

    For what it's worth, I've heard much the same from colleagues who've spent any amount of time there.

    If the Indian government accepts the baksheesh, but doesn't follow through, or demands still more, then let them rot.

    edited December 2017
Sign In or Register to comment.