Samsung has at least two, with the already massive Noida, Uttar Pradesh plant in the process of doubling in size to allow 12M smartphones a year to be produced from it. Huawei is in the process of settting up their own manufacturing plant there as well as are several other Chinese OEM's and component suppliers. Intex, beside building heir own line of smartphones, has at least 5 component factories in China. Gionee, another Chinese component maker and handset assembler is openign a plant there. Sadly tho most of the current smartphone component supply sourced directly from India factories seems to be headsets/earbuds, chargers and various low-dollar minor stuff rather than advanced display, audio or power tech. That's an area that India is really trying to improve, using big sticks (taxes/import duties) and tiny carrots as incentives.
Samsung has at least two, with the already massive Noida, Uttar Pradesh plant in the process of doubling in size to allow 12M smartphones a year to be produced from it. Huawei is in the process of settting up their own manufacturing plant there as well as are several other Chinese OEM's and component suppliers. Intex, beside building heir own line of smartphones, has at least 5 component factories in China. Gionee, another Chinese component maker and handset assembler is openign a plant there. Sadly tho most of the current smartphone component supply sourced directly from India factories seems to be headsets/earbuds, chargers and various low-dollar minor stuff rather than advanced display, audio or power tech. That's an area that India is really trying to improve, using big sticks (taxes/import duties) and tiny carrots as incentives.
Apple can manufacture in India instead of begging for concessions and financial handouts. Made in India. Creating jobs, that's a good thing to do in India!
Why would a company decide to manufacture in a place when it offer zero incentive, and has nothing better then its current location of manufacture, and then India decide to also hike import tax on component.
In that case it only make sense for Apple to pay the Import tax and do nothing with India.
What do you think? Why is Tim Cook begging to give them a better deal? They are smart in India, they will not give Apple a deal and Apple will follow the same rules like everyone else. Respect!
If rumors are true, Apple is going to get hit even harder because India is in the process of raising taxes on imported components as well. That would, again, affect Apple more than others since Apple only assembles in India. They don't manufacture. Somebody at Apple is going to have to make some hard decisions regarding whether or not India is worth the effort. Apple is in a strange place regarding India. They are so used to negotiating from a position of strength, and with India, that is definitely not the case.
Why not lobby the US government for protectionism. I dont agree with Trump on much but it is odd to have one way protectionism. Although he concentrates on China.
Lobby the US government for protectionism? Apple doesn't manufacture in the US. Why would they lobby the US govt? Political rhetoric rarely makes sense in politics. It definitely doesn't make sense here.
Indians are simply too lazy. Apple does not assemble iPhone by itself in China. It is a Taiwanese company called Foxconn does this for Apple. Why can't an Indian company do the same as Foxconn in India? India has over one billion people.
As another example, India does not have an international airline company. Both iPhone manufacturing and airline operation need strong organizational ability.
Indians are simply too lazy. Apple does not assemble iPhone by itself in China. It is a Taiwanese company called Foxconn does this for Apple. Why can't an Indian company do the same as Foxconn in India? India has over one billion people.
As another example, India does not have an international airline company. Both iPhone manufacturing and airline operation need strong organizational ability.
Why can’t a Chinese company do the same as Foxconn in China? Are the Chinese “simply too lazy”?
Indians are simply too lazy. Apple does not assemble iPhone by itself in China. It is a Taiwanese company called Foxconn does this for Apple. Why can't an Indian company do the same as Foxconn in India? India has over one billion people.
As another example, India does not have an international airline company. Both iPhone manufacturing and airline operation need strong organizational ability.
Why can’t a Chinese company do the same as Foxconn in China? Are the Chinese simply too lazy?
As an aside, look up Jet Airways or Air India.
You sound a tad like an ignorant racist.
There are many Chinese companies that can do the same as Foxconn in China. You sound a tad like an ignorant racist.
I checked Air India. It does not have flights from Los Angles to India. I got this error.
"Sorry, no availability of flights or seats are found for the routes / dates you have selected.. Please search for an alternate date or route"
Indians are simply too lazy. Apple does not assemble iPhone by itself in China. It is a Taiwanese company called Foxconn does this for Apple. Why can't an Indian company do the same as Foxconn in India? India has over one billion people.
As another example, India does not have an international airline company. Both iPhone manufacturing and airline operation need strong organizational ability.
Why can’t a Chinese company do the same as Foxconn in China? Are the Chinese simply too lazy?
As an aside, look up Jet Airways or Air India.
You sound a tad like an ignorant racist.
There are many Chinese companies that can do the same as Foxconn in China. You sound a tad like an ignorant racist.
I checked Air India. It does not have flights from Los Angles to India. I got this error.
"Sorry, no availability of flights or seats are found for the routes / dates you have selected.. Please search for an alternate date or route"
Which Chinese company? Lol. You’re funny.
And you’re quite ignorant about what the phrase “international airline” means. I can’t explain basic words in the English language to you, unfortunately.
Indians are simply too lazy. Apple does not assemble iPhone by itself in China. It is a Taiwanese company called Foxconn does this for Apple. Why can't an Indian company do the same as Foxconn in India? India has over one billion people.
As another example, India does not have an international airline company. Both iPhone manufacturing and airline operation need strong organizational ability.
Why can’t a Chinese company do the same as Foxconn in China? Are the Chinese simply too lazy?
As an aside, look up Jet Airways or Air India.
You sound a tad like an ignorant racist.
There are many Chinese companies that can do the same as Foxconn in China. You sound a tad like an ignorant racist.
I checked Air India. It does not have flights from Los Angles to India. I got this error.
"Sorry, no availability of flights or seats are found for the routes / dates you have selected.. Please search for an alternate date or route"
Which Chinese company? Lol. You’re funny.
And you’re quite ignorant about what the phrase “international airline” means. I can’t explain basic words in the English language to you, unfortunately.
You have never heard about Vivo, Huawei, Xiaomi, and many others?
Indians are simply too lazy. Apple does not assemble iPhone by itself in China. It is a Taiwanese company called Foxconn does this for Apple. Why can't an Indian company do the same as Foxconn in India? India has over one billion people.
As another example, India does not have an international airline company. Both iPhone manufacturing and airline operation need strong organizational ability.
Why can’t a Chinese company do the same as Foxconn in China? Are the Chinese simply too lazy?
As an aside, look up Jet Airways or Air India.
You sound a tad like an ignorant racist.
There are many Chinese companies that can do the same as Foxconn in China. You sound a tad like an ignorant racist.
I checked Air India. It does not have flights from Los Angles to India. I got this error.
"Sorry, no availability of flights or seats are found for the routes / dates you have selected.. Please search for an alternate date or route"
Which Chinese company? Lol. You’re funny.
And you’re quite ignorant about what the phrase “international airline” means. I can’t explain basic words in the English language to you, unfortunately.
You have never heard about Vivo, Huawei, Xiaomi, and many others?
You’re simply continuing to prove your ignorance. Xiaomi phones are mostly assembled by Foxconn, who does contract manufacturing for them. Huawei is a telecom equipment company (that is not the same as a smartphone company). I cannot find any substantive evidence that Vivo has any significant manufacturing or assembly facilities — why don’t you post a link that shows how many phones they manufacture or assemble, and how many people they employ in manufacturing/assembly?
Moreover, to the extent that these three companies make anything, it is quite well known and well-established that much of what they do is based on knocked-off from the US, Taiwan, Korea, etc. To the extent that it happens in the case smartphones or consumer electronics, those sorts of IP knock-offs happen on a far smaller scale in India, AFAIK. Maybe that explains the lack of local smartphone manufacturing?
Apple can manufacture in India instead of begging for concessions and financial handouts. Made in India. Creating jobs, that's a good thing to do in India!
Why would a company decide to manufacture in a place when it offer zero incentive, and has nothing better then its current location of manufacture, and then India decide to also hike import tax on component.
In that case it only make sense for Apple to pay the Import tax and do nothing with India.
What do you think? Why is Tim Cook begging to give them a better deal? They are smart in India, they will not give Apple a deal and Apple will follow the same rules like everyone else. Respect!
There is nothing smart about forcing higher taxes on an imported product that would be mainly used by consumers and local businesses to build better business of their products. For the costomer, paying the higher price for an iphone leaves less cash for other, local products and a slower uptake of technology. The whole point of the import tax is to allow locally made product to be sold at a higher price than it otherwise could be after all. There is a lot of fat in tariff protection, you might as well call it subsidy farming as a business venture, because that is where most of the profit will come from. It is easier to lobby to expand the tax than increase productivity. Oh, look whats happening!
All this does at best is raise the cost of doing business in India, for both foreigners and locals. At worst, it diverts production away from the most productive uses of Indian industry to a pale imitation of what businesses in other countries are already doing, and have been for a long time. In between there is all sorts of money making opportunities for middlemen grifters to the financial detriment of the consumer or the small business trying to grow. This analogy doesn't work too well in India, but I am sure anyone with half a brain would understand:
"Skate to where the puck will be, not where it is now."
Tariffs might make the factory owner fat while they last, but the Indian economy will grow more slowly overall. And when the import tax ends, so will the local factories created by the tax.
Indians are simply too lazy. Apple does not assemble iPhone by itself in China. It is a Taiwanese company called Foxconn does this for Apple. Why can't an Indian company do the same as Foxconn in India? India has over one billion people.
As another example, India does not have an international airline company. Both iPhone manufacturing and airline operation need strong organizational ability.
Nice job with the racist comment - the anonymity of the Internet makes it so easy, doesn't it? And, your ignorance about international airlines operating out of India is laughably astounding.
It would be better if you based your comments on facts and logic than your biased world views and personal prejudices.
Sometimes, I wonder if there's a section of the Indian bureaucracy that has the knives out for Apple, for whatever reason. One has to remember that bureaucrats of the Indian Administrative Service (I.A.S) wield tremendous influence in shaping policies and implementing them - they are the often the main people that Central Ministers rely on for advisory inputs about policies that are nation-wide (ditto with state bureaucrats and Ministers in State governments).
All that's needed to derail an otherwise massively positive, national or state level policy is for these bureaucrats to convince the Minister in charge to pass some muddle-headed advice or directive or drag their heels on the implementation. The raising of import duties appears to be one such directive that might end up doing more harm than good for the 'Make in India' campaign.
Huawei uses Flex (Flex India) to manufacture its Honor handsets in India. I think they have the capacity to scale well there and could probably handle some Apple contracts if Apple chose to use them.
Indians are simply too lazy. Apple does not assemble iPhone by itself in China. It is a Taiwanese company called Foxconn does this for Apple. Why can't an Indian company do the same as Foxconn in India? India has over one billion people.
As another example, India does not have an international airline company. Both iPhone manufacturing and airline operation need strong organizational ability.
Why can’t a Chinese company do the same as Foxconn in China? Are the Chinese simply too lazy?
As an aside, look up Jet Airways or Air India.
You sound a tad like an ignorant racist.
There are many Chinese companies that can do the same as Foxconn in China. You sound a tad like an ignorant racist.
I checked Air India. It does not have flights from Los Angles to India. I got this error.
"Sorry, no availability of flights or seats are found for the routes / dates you have selected.. Please search for an alternate date or route"
Which Chinese company? Lol. You’re funny.
And you’re quite ignorant about what the phrase “international airline” means. I can’t explain basic words in the English language to you, unfortunately.
You have never heard about Vivo, Huawei, Xiaomi, and many others?
You’re simply continuing to prove your ignorance. Xiaomi phones are mostly assembled by Foxconn, who does contract manufacturing for them. Huawei is a telecom equipment company (that is not the same as a smartphone company). I cannot find any substantive evidence that Vivo has any significant manufacturing or assembly facilities — why don’t you post a link that shows how many phones they manufacture or assemble, and how many people they employ in manufacturing/assembly?
Moreover, to the extent that these three companies make anything, it is quite well known and well-established that much of what they do is based on knocked-off from the US, Taiwan, Korea, etc. To the extent that it happens in the case smartphones or consumer electronics, those sorts of IP knock-offs happen on a far smaller scale in India, AFAIK. Maybe that explains the lack of local smartphone manufacturing?
Not true.
The problem is India doesn't have an iPhone market ( yet ), their Smartphone ASP is not where near what China were buying even 5 years ago. And its growth in next 5 years from now wont match China 5 years earlier either. Look at the Projected India GDP in 2022 vs China GDP in 2010.
Then there is the whole Manufacturing ecosystem, and it is not simply Foxconn, there are lots of assembly and procedures within.
The reason why Apple cant move manufacturing back to US or anywhere else? You can move a company, you cant move a ecosystem around it. You have to spend lots of time and money to built in. China has invested hundreds of billions worth into it. And there is a massive culture around it too which cant even be replicated easily.
May be the comment on Indian being lazy were inappropriate. What is possibly correct though, is the Chinese are extremely hard working. Tim Cook mention low labour wages were no longer true in China, that is only partly correct. There were no longer low wages compared to others, but in terms of efficiency and work done with their working hours, they are still very cheap. Especially in the tech assembly circle, some of the complex operation are still done in labours, because Foxbot ( Foxconn Robot ) cant beat those human hands with muscle memory ( yet ).
From my point of view, both China and India needs all the help they need when they get started, China have lots of incentive at the start, to lure companies into China, create jobs, and a promise of market access with YoY GDP growth that is unprecedented. India, however has been playing lots of hardballs. Even Brazil were willing to get incentives with Foxconn.
Sometimes, I wonder if there's a section of the Indian bureaucracy that has the knives out for Apple, for whatever reason. One has to remember that bureaucrats of the Indian Administrative Service (I.A.S) wield tremendous influence in shaping policies and implementing them - they are the often the main people that Central Ministers rely on for advisory inputs about policies that are nation-wide (ditto with state bureaucrats and Ministers in State governments).
All that's needed to derail an otherwise massively positive, national or state level policy is for these bureaucrats to convince the Minister in charge to pass some muddle-headed advice or directive or drag their heels on the implementation. The raising of import duties appears to be one such directive that might end up doing more harm than good for the 'Make in India' campaign.
As far as I can tell, they are trying to copying the success in China for Manufacturing, which is a perfectly reasonable thing to do. The idea is good, but the execution is....... It is showing they have little understanding what makes China the hub in the first place. Hint: Low Wages isn't everything.
As with every country, Business is easy, politics is hard.
If rumors are true, Apple is going to get hit even harder because India is in the process of raising taxes on imported components as well. That would, again, affect Apple more than others since Apple only assembles in India. They don't manufacture. Somebody at Apple is going to have to make some hard decisions regarding whether or not India is worth the effort. Apple is in a strange place regarding India. They are so used to negotiating from a position of strength, and with India, that is definitely not the case.
Why not lobby the US government for protectionism. I dont agree with Trump on much but it is odd to have one way protectionism. Although he concentrates on China.
Lobby the US government for protectionism? Apple doesn't manufacture in the US. Why would they lobby the US govt? Political rhetoric rarely makes sense in politics. It definitely doesn't make sense here.
If India has tax on imports then it makes sense to tax Indian exports.
Indians are simply too lazy. Apple does not assemble iPhone by itself in China. It is a Taiwanese company called Foxconn does this for Apple. Why can't an Indian company do the same as Foxconn in India? India has over one billion people.
As another example, India does not have an international airline company. Both iPhone manufacturing and airline operation need strong organizational ability.
What international airlines do China have? Don't bother responding with any stupid Government subsidized airline. Although I do hear good things about their airports... when you can see them through the smog.
Indians are simply too lazy. Apple does not assemble iPhone by itself in China. It is a Taiwanese company called Foxconn does this for Apple. Why can't an Indian company do the same as Foxconn in India? India has over one billion people.
As another example, India does not have an international airline company. Both iPhone manufacturing and airline operation need strong organizational ability.
Why can’t a Chinese company do the same as Foxconn in China? Are the Chinese simply too lazy?
As an aside, look up Jet Airways or Air India.
You sound a tad like an ignorant racist.
There are many Chinese companies that can do the same as Foxconn in China. You sound a tad like an ignorant racist.
I checked Air India. It does not have flights from Los Angles to India. I got this error.
"Sorry, no availability of flights or seats are found for the routes / dates you have selected.. Please search for an alternate date or route"
Which Chinese company? Lol. You’re funny.
And you’re quite ignorant about what the phrase “international airline” means. I can’t explain basic words in the English language to you, unfortunately.
You have never heard about Vivo, Huawei, Xiaomi, and many others?
You’re simply continuing to prove your ignorance. Xiaomi phones are mostly assembled by Foxconn, who does contract manufacturing for them. Huawei is a telecom equipment company (that is not the same as a smartphone company). I cannot find any substantive evidence that Vivo has any significant manufacturing or assembly facilities — why don’t you post a link that shows how many phones they manufacture or assemble, and how many people they employ in manufacturing/assembly?
Moreover, to the extent that these three companies make anything, it is quite well known and well-established that much of what they do is based on knocked-off from the US, Taiwan, Korea, etc. To the extent that it happens in the case smartphones or consumer electronics, those sorts of IP knock-offs happen on a far smaller scale in India, AFAIK. Maybe that explains the lack of local smartphone manufacturing?
China has been jerking Apple's chain too much. If Apple didn't assemble in China, the Chinese would impose high taxes on Apple too. Apple needs to let India force them into putting more plants in India and start developing a second ecosystem there. When it becomes evident that a lot of manufacturing could go to India (at cheaper wages) China will stop disrespecting Apple.
Comments
http://indianexpress.com/article/technology/tech-news-technology/xiaomi-redmi-4a-now-has-a-second-factory-in-india-manufactures-one-phone-a-second-4577623/
Samsung has at least two, with the already massive Noida, Uttar Pradesh plant in the process of doubling in size to allow 12M smartphones a year to be produced from it. Huawei is in the process of settting up their own manufacturing plant there as well as are several other Chinese OEM's and component suppliers.
Intex, beside building heir own line of smartphones, has at least 5 component factories in China. Gionee, another Chinese component maker and handset assembler is openign a plant there. Sadly tho most of the current smartphone component supply sourced directly from India factories seems to be headsets/earbuds, chargers and various low-dollar minor stuff rather than advanced display, audio or power tech. That's an area that India is really trying to improve, using big sticks (taxes/import duties) and tiny carrots as incentives.
Forbes ran a good piece on the India smartphone production scene a few months ago. Worth reading.
https://www.forbes.com/sites/krnkashyap/2017/02/22/heres-how-india-is-becoming-a-hub-for-smartphone-manufacturing-in-south-asia/#1687846e3be8
I still don’t think Apple can do anything here.
As another example, India does not have an international airline company. Both iPhone manufacturing and airline operation need strong organizational ability.
As an aside, look up Jet Airways or Air India.
You sound a tad like an ignorant racist.
I checked Air India. It does not have flights from Los Angles to India. I got this error.
And you’re quite ignorant about what the phrase “international airline” means. I can’t explain basic words in the English language to you, unfortunately.
Moreover, to the extent that these three companies make anything, it is quite well known and well-established that much of what they do is based on knocked-off from the US, Taiwan, Korea, etc. To the extent that it happens in the case smartphones or consumer electronics, those sorts of IP knock-offs happen on a far smaller scale in India, AFAIK. Maybe that explains the lack of local smartphone manufacturing?
All this does at best is raise the cost of doing business in India, for both foreigners and locals. At worst, it diverts production away from the most productive uses of Indian industry to a pale imitation of what businesses in other countries are already doing, and have been for a long time. In between there is all sorts of money making opportunities for middlemen grifters to the financial detriment of the consumer or the small business trying to grow.
This analogy doesn't work too well in India, but I am sure anyone with half a brain would understand:
Tariffs might make the factory owner fat while they last, but the Indian economy will grow more slowly overall. And when the import tax ends, so will the local factories created by the tax.
It would be better if you based your comments on facts and logic than your biased world views and personal prejudices.
All that's needed to derail an otherwise massively positive, national or state level policy is for these bureaucrats to convince the Minister in charge to pass some muddle-headed advice or directive or drag their heels on the implementation. The raising of import duties appears to be one such directive that might end up doing more harm than good for the 'Make in India' campaign.
The problem is India doesn't have an iPhone market ( yet ), their Smartphone ASP is not where near what China were buying even 5 years ago. And its growth in next 5 years from now wont match China 5 years earlier either. Look at the Projected India GDP in 2022 vs China GDP in 2010.
Then there is the whole Manufacturing ecosystem, and it is not simply Foxconn, there are lots of assembly and procedures within.
The reason why Apple cant move manufacturing back to US or anywhere else? You can move a company, you cant move a ecosystem around it. You have to spend lots of time and money to built in. China has invested hundreds of billions worth into it. And there is a massive culture around it too which cant even be replicated easily.
May be the comment on Indian being lazy were inappropriate. What is possibly correct though, is the Chinese are extremely hard working. Tim Cook mention low labour wages were no longer true in China, that is only partly correct. There were no longer low wages compared to others, but in terms of efficiency and work done with their working hours, they are still very cheap. Especially in the tech assembly circle, some of the complex operation are still done in labours, because Foxbot ( Foxconn Robot ) cant beat those human hands with muscle memory ( yet ).
From my point of view, both China and India needs all the help they need when they get started, China have lots of incentive at the start, to lure companies into China, create jobs, and a promise of market access with YoY GDP growth that is unprecedented. India, however has been playing lots of hardballs. Even Brazil were willing to get incentives with Foxconn.
As with every country, Business is easy, politics is hard.
Apple needs to let India force them into putting more plants in India and start developing a second ecosystem there. When it becomes evident that a lot of manufacturing could go to India (at cheaper wages) China will stop disrespecting Apple.