Apple begins shipping India-made iPhones to European markets

AppleInsider

Apple has begun exporting India-made iPhones to parts of Europe in a move beneficial to both Apple and India as a whole.

According to sources familiar with the situation, Apple has shipped iPhones to some European markets from India. The move was confirmed by Foxconn's CEO Terry Gou earlier this year -- but Gou wasn't clear on the timetable.

Apple has contracted Wistron Corp, who had originally begun assembling the iPhone SE in India in 2017. The phones are being exported from its facility in Bengaluru.

The move is mutually beneficial for both Apple and India. For Apple, it allows them to benefit from using sources outside of China, cutting tariff costs imposed by the Trump administration on Chinese-made goods.

Apple has asked Wistron, Foxconn, and Pegatron to look towards moving 30% of their production to locations outside of China.

India stands to benefit as well, as it would highlight their plausibility as a foreign investment for exported goods.

According to an article at IndiaTimes, the iPhones are currently being exported in quantities of under 100,000 units a month. The data was provided by Neil Shah, research directior at Counterpoint Research.

According to senior executives in the industry, the export volumes were 70% to 80% of the total capacity of Wistron's capabilities.

"For Foxconn, the China market for iPhones is saturated, and labor costs are three times higher compared with India," Counterpoint Research analyst Karn Chauhan said previously in regards to the development. "India is still an emerging smartphone market, it has a lot of potential domestically and could serve as an export hub for the region."

Local manufacturing of the iPhone could also help Apple get a foot in the door for opening its own stores in India.

melgross

We may not have the advantage with India much longer, as Trump started a trade war with them as well, and India has already begun to retaliate. If this keeps up, we’ll have another depression.

crowley

melgross said:

We may not have the advantage with India much longer, as Trump started a trade war with them as well, and India has already begun to retaliate. If this keeps up, we’ll have another depression.

Remind me of this map:



You'll be able to draw a new one soon with all the countries that Donnie has insulted and/or started a trade war with.  Probably one with countries that he's heard of too, that'll be limited.

maestro64

melgross said:

We may not have the advantage with India much longer, as Trump started a trade war with them as well, and India has already begun to retaliate. If this keeps up, we’ll have another depression.

China steal US companies IP, knock it all off and turns around and sells it all on the world mark at prices which are lower than any US company can sell. Then you have India who undercuts high tech wages by 1/3 and get US company to outsource IT work to India. They tariff anything made in the US by 100% unless they force the product to be made in India. They force US drug companies to make drugs in India and sell the drugs at far lower price than anywhere else. This alone if the reason drugs cost more in the US. I am not sure which of these two countries are worse.

I just wish the US would implement reciprocal duty and tariffs which are automated as soon as another country puts tax, duty, tariff or VAT on any product or service the US matched exactly what they do for any of their product coming to the US. The US had been talking about doing reciprocal trade practices but have not. If they did then it no longer political and it an automatic reaction to when another country try make money of US goods and services. Yes I know US citizens pay the tax, but if other country will not profit from the US, they will think twice about playing their games. Today they know the US has always been slow to react to any thing related to trade so they do it anyway and hope to get away with as long as they can.

I feel bad for any customer getting product coming out of India, at least China made huge investments in their infrastructure and work force training. India did not and their quality is no where close to China at this point.

Folio

Assembly of non- critical older phones is not too complex for India. I've been inside a small line for androids in US years ago, and doubtless lines are even more automated now. Expect to go shopping in Apple Mumbai store in 2020. Fingers crossed.

melgross

maestro64 said:

melgross said:

We may not have the advantage with India much longer, as Trump started a trade war with them as well, and India has already begun to retaliate. If this keeps up, we’ll have another depression.

China steal US companies IP, knock it all off and turns around and sells it all on the world mark at prices which are lower than any US company can sell. Then you have India who undercuts high tech wages by 1/3 and get US company to outsource IT work to India. They tariff anything made in the US by 100% unless they force the product to be made in India. They force US drug companies to make drugs in India and sell the drugs at far lower price than anywhere else. This alone if the reason drugs cost more in the US. I am not sure which of these two countries are worse.

I just wish the US would implement reciprocal duty and tariffs which are automated as soon as another country puts tax, duty, tariff or VAT on any product or service the US matched exactly what they do for any of their product coming to the US. The US had been talking about doing reciprocal trade practices but have not. If they did then it no longer political and it an automatic reaction to when another country try make money of US goods and services. Yes I know US citizens pay the tax, but if other country will not profit from the US, they will think twice about playing their games. Today they know the US has always been slow to react to any thing related to trade so they do it anyway and hope to get away with as long as they can.

I feel bad for any customer getting product coming out of India, at least China made huge investments in their infrastructure and work force training. India did not and their quality is no where close to China at this point.

Some of what you’re saying is true, and some isn’t.

nevertheless, what he’s doing is having more of a deleterious effect on our economy than theirs, which figures. And, fun fact, it’s negatively affecting red states more than blue ones.

BlackHipster

maestro64 said:

melgross said:

We may not have the advantage with India much longer, as Trump started a trade war with them as well, and India has already begun to retaliate. If this keeps up, we’ll have another depression.

China steal US companies IP, knock it all off and turns around and sells it all on the world mark at prices which are lower than any US company can sell. Then you have India who undercuts high tech wages by 1/3 and get US company to outsource IT work to India. They tariff anything made in the US by 100% unless they force the product to be made in India. They force US drug companies to make drugs in India and sell the drugs at far lower price than anywhere else. This alone if the reason drugs cost more in the US. I am not sure which of these two countries are worse.

I just wish the US would implement reciprocal duty and tariffs which are automated as soon as another country puts tax, duty, tariff or VAT on any product or service the US matched exactly what they do for any of their product coming to the US. The US had been talking about doing reciprocal trade practices but have not. If they did then it no longer political and it an automatic reaction to when another country try make money of US goods and services. Yes I know US citizens pay the tax, but if other country will not profit from the US, they will think twice about playing their games. Today they know the US has always been slow to react to any thing related to trade so they do it anyway and hope to get away with as long as they can.

I feel bad for any customer getting product coming out of India, at least China made huge investments in their infrastructure and work force training. India did not and their quality is no where close to China at this point.

This is such a poor understanding of the world economics. Though there is some truth to what you say, there is no depth to what you are thinking. If it were not for Chinese workforce and Indian IT workers, we would not have sustained such growth for the last 30 years. If we start counter taxing, a lot of companies will start to operate outside of US and then we will see a dramatic rise of Chinese and European companies that will take advantage of the low labor costs from these countries. I do agree about China stealing our IP but countries like India should never be in the line of fire. They do things by the book and adhere to international laws unlike China. The current taxing that Trump is doing is playing to his base and he does not care what it does to US coz he is thinking of 2020 elections. The rhetoric is that all these immigrants are bad and these brown and yellow people don't play fair. His bases loses their mind thinking Trump is god. The recent case being Harley Davidson being taxed in India. HD barely sells a thousand units and it is a luxury good in India. Even if HD is tax free in India, they would still sell only 1000 units. However, this goes really well to his base who are uneducated and stupid, they eat it up like the 'chinese' or 'indian' buffet!

anantksundaram

maestro64 said:

I feel bad for any customer getting product coming out of India, at least China made huge investments in their infrastructure and work force training. India did not and their quality is no where close to China at this point.

What a moronic statement. It presumes that Apple will sell something that does not meet its strict quality standards. 

anantksundaram

melgross said:

nevertheless, what he’s doing is having more of a deleterious effect on our economy than theirs, which figures. 

Interesting point, and one for which I have not really seen any substantive empirical evidence (but it may exist).

Can you elaborate?

melgross

anantksundaram said:

melgross said:

nevertheless, what he’s doing is having more of a deleterious effect on our economy than theirs, which figures. 

Interesting point, and one for which I have not really seen any substantive empirical evidence (but it may exist).

Can you elaborate?

Just read what happened to our soybean exports. They’ve plummeted.  Most were going to China, but they’ve found alternative sources. Manufacturers, and businesses have stated that this is bad for the economy, and for their businesses. Apple has stated the same, as has Microsoft and others in the tech industry. It’s already thought to be taking 0.1 to 0.2% off our GDP each month.

while Trump said that tariffs on Chinese steel will allow steel makers here to sell more, they’ve just raised their prices instead. That raises costs for everyone.

and the lie that China will pay the tariffs is nonsense, as economists have been saying. While some Chinese companies will discount a little from their already marginal profits, most will be paid by US companies and importers when the products come in the country. They will raise prices, and we will pay them. This is a tax that can reach 25%. We kid about VAT taxes elsewhere, this will be just as high, on average, but it will be hidden as price increases. Most people will get mad at the companies, and if Trump can convince his naive and gullible followers that it’s not his doing, they’ll vote for him again.

I'm just going to link to one article right now, but be assured that there are dozens.

https://www.businessinsider.com/gdp-trump-tariff-trade-war-us-china-2018-10

maestro64

BlackHipster said:

maestro64 said:

melgross said:

We may not have the advantage with India much longer, as Trump started a trade war with them as well, and India has already begun to retaliate. If this keeps up, we’ll have another depression.

China steal US companies IP, knock it all off and turns around and sells it all on the world mark at prices which are lower than any US company can sell. Then you have India who undercuts high tech wages by 1/3 and get US company to outsource IT work to India. They tariff anything made in the US by 100% unless they force the product to be made in India. They force US drug companies to make drugs in India and sell the drugs at far lower price than anywhere else. This alone if the reason drugs cost more in the US. I am not sure which of these two countries are worse.

I just wish the US would implement reciprocal duty and tariffs which are automated as soon as another country puts tax, duty, tariff or VAT on any product or service the US matched exactly what they do for any of their product coming to the US. The US had been talking about doing reciprocal trade practices but have not. If they did then it no longer political and it an automatic reaction to when another country try make money of US goods and services. Yes I know US citizens pay the tax, but if other country will not profit from the US, they will think twice about playing their games. Today they know the US has always been slow to react to any thing related to trade so they do it anyway and hope to get away with as long as they can.

I feel bad for any customer getting product coming out of India, at least China made huge investments in their infrastructure and work force training. India did not and their quality is no where close to China at this point.

This is such a poor understanding of the world economics. Though there is some truth to what you say, there is no depth to what you are thinking. If it were not for Chinese workforce and Indian IT workers, we would not have sustained such growth for the last 30 years. If we start counter taxing, a lot of companies will start to operate outside of US and then we will see a dramatic rise of Chinese and European companies that will take advantage of the low labor costs from these countries. I do agree about China stealing our IP but countries like India should never be in the line of fire. They do things by the book and adhere to international laws unlike China. The current taxing that Trump is doing is playing to his base and he does not care what it does to US coz he is thinking of 2020 elections. The rhetoric is that all these immigrants are bad and these brown and yellow people don't play fair. His bases loses their mind thinking Trump is god. The recent case being Harley Davidson being taxed in India. HD barely sells a thousand units and it is a luxury good in India. Even if HD is tax free in India, they would still sell only 1000 units. However, this goes really well to his base who are uneducated and stupid, they eat it up like the 'chinese' or 'indian' buffet!

I worked for a number of large company in tech mainly making and selling product around the world and I have see and experience first hand what countries like India and China has done. My knowledge is more than surface level trust me on that.  India does not play by the book, India along with their practice of under paying IT workers to draw business from the US had destroy the US IT market. This use to be good paying jobs for lots of people now you can hire 4 lower skill workers in India to do the same as one US IT worker use to do in the US. India solves problem by through more people at the problem. I can share with you the long list of crappy IT solution companies I work for had to deal with coming out of China.

I will agree no one in India is buying $30,000 Harley, but Harley owned other motorcycle brand which were much lower costs but India would not allow them to be sold in India the market was closed for the most part. India knew if higher quality manufactured bikes showed up on the market their own brands would suffer. The fact you focus on the more expensive Harley brands show the media did their job of making people feel sorry for India and Harley is this big bad company.

Look at what India did to Amazon and Wal Mart, they are not allow them to sell any product which are unique to Amazon or Wal Mart which an Indian competitor could not also offer. yeah this is playing by the rules. The rules are simple in a free trade and capitalist market, those who can compete in the most cost effective way win and those who cannot fade away. India does not have products anyone really wants to buy around the world so they can not allow things to come into their country which would put Indian companies out of business since they can not compete. They want all the benefits without any of the risk. China figure out how to compete, too bad it required them stealing the know how from US and EU companies.