Apple manufacturer Pegatron registers India subsidiary in response to tariff wars

Posted:
in General Discussion
Apple assembly partner Pegatron has plans to open a factory in India as the U.S.-China trade war continues.




Pegatron has registered a subsidiary in India, signaling its hopes of moving at least some of its iPhone manufacturing out of China. The company had been searching for a suitable site for some time. In January, it had been reported that Pegatron had been looking to set up a new factory in north Vietnam.

Pegatron is the only one of three iPhone assembly partners to not have facilities within India. Both Foxconn and Wistron, Apple's other assembly partners, have been present in India for some time.

"Pegatron has registered its India subsidiary in Chennai," a person familiar with the development told the India Times. "Currently, the company's officials are in discussions with multiple state governments to find land to set up factories after which they would import plant and machinery."

The Indian government has continually offered incentives for large tech companies through their "Make in India" initiatives. The country hopes to make $190 billion worth of mobile phones in the country by the year 2025. Currently, the Indian government has made $24 billion from the manufacturing of smartphones.

According to the Indian Times, Apple's turnover in India in 2019 was $1.5 billion, with iPhone's accounting for less than $1 billion. Wistron and Foxconn locally manufacture the iPhone 7 and XR. In India, Apple only holds a market share of 2-3% but leads the premium phone category.

The two-year trade war between the United States and China is an example of how the diversification could have assisted Apple. By having the option to assemble iPhones outside of China,, iPhones destined for sale in the United Staes could have been produced elsewhere, allowing Apple to avoid having to pay heavy fees on imports from China.
makaveli-313

Comments

  • Reply 1 of 14
    JWSCJWSC Posts: 1,026member
    More good moves. Apple is silent on the matter. But at least they are making moves in the right direction.
    makaveli-313
  • Reply 2 of 14
    GeorgeBMacGeorgeBMac Posts: 10,476member
    it's a shame that Apple and the American people have to pay for Trump's vendettas.

    No politician should be dictating corporate policy in a free market.  It's funny how Trump criticizes China -- and then he himself does far worse things -- but the cult follows like sheep.
    Dogpersonforegoneconclusionjony0
  • Reply 3 of 14
    SpamSandwichSpamSandwich Posts: 33,408member
    JWSC said:
    More good moves. Apple is silent on the matter. But at least they are making moves in the right direction.
    In 12 years it’ll be India that’ll be the problem for the US, as big as China. Hope one day there are massive Free Economic Zones established in the US to reverse this continual overreliance on outside suppliers.
  • Reply 4 of 14
    Who could have known that tariffs would fail to be effective in a trade war?*

    *(other than Herbert Hoover)
    jony0JWSCGeorgeBMac
  • Reply 5 of 14
    jony0jony0 Posts: 347member
    Who could have known that tariffs would fail to be effective in a trade war?*

    *(other than Herbert Hoover)
         **(other than most economists)   https://duckduckgo.com/?q=Economists+views+on+tariffs&t=osx&ia=web
        ***(other than most reasonable people)
    A tax is a tax is a tax, paid by the buyer, NOT the seller. Call it what you will, sales tax, import tax, duty, customs, excise, tariff, value-added, same old crap, always paid by the same people, us. Trade wars aren't effective either, especially if prolonged, which could take and has taken an extreme turn :
    Fortunately Apple assembly partners are being very proactive, good for them, good for India, good for Apple, good for us.
    makaveli-313
  • Reply 6 of 14
    JWSCJWSC Posts: 1,026member
    it's a shame that Apple and the American people have to pay for Trump's vendettas.

    No politician should be dictating corporate policy in a free market.  It's funny how Trump criticizes China -- and then he himself does far worse things -- but the cult follows like sheep.
    So, now that you brought it up, I’m curious. What do you think the politicians are doing in China?
    SpamSandwich
  • Reply 7 of 14
    JWSCJWSC Posts: 1,026member
    JWSC said:
    More good moves. Apple is silent on the matter. But at least they are making moves in the right direction.
    In 12 years it’ll be India that’ll be the problem for the US, as big as China. Hope one day there are massive Free Economic Zones established in the US to reverse this continual overreliance on outside suppliers.
    No Free Economic Zones needed. Here’s what we need to do. Remove all corporate taxes and change the tax revenue source to middle and upper income citizens (bonus - we get to see what we’re really paying). Then remove the minimum wage. That will stimulate the economy like Hong Kong in its pre-handover heyday.

    Yea, I know. Zero chance of that happening.
  • Reply 8 of 14
    it's a shame that Apple and the American people have to pay for Trump's vendettas.

    No politician should be dictating corporate policy in a free market.  It's funny how Trump criticizes China -- and then he himself does far worse things -- but the cult follows like sheep.
    But you were fine with Obama dictating corporate policy.
    Pretty clear that he said this: No politician should be dictating corporate policy in a free market.  Did you happen to intentionally overlook that part of his comment so that you could get yours out?
    GeorgeBMacmuthuk_vanalingam
  • Reply 9 of 14
    GeorgeBMacGeorgeBMac Posts: 10,476member
    it's a shame that Apple and the American people have to pay for Trump's vendettas.

    No politician should be dictating corporate policy in a free market.  It's funny how Trump criticizes China -- and then he himself does far worse things -- but the cult follows like sheep.
    But you were fine with Obama dictating corporate policy.

    LOL...  So, what did Obama dictate to whom?

    Funny, how the backers of a wanna-be fascist dictator claim that the meekest president since Jimmy Carter was dictator!   That's hilarious!
  • Reply 10 of 14
    flydogflydog Posts: 1,015member
    JWSC said:
    More good moves. Apple is silent on the matter. But at least they are making moves in the right direction.
    In 12 years it’ll be India that’ll be the problem for the US, as big as China. Hope one day there are massive Free Economic Zones established in the US to reverse this continual overreliance on outside suppliers.
    Foxconn workers in China are paid $400 a month. Are you proposing to reduce the minimum wage to $2.50 an hour?

    Brilliant plan Einstein. 
  • Reply 11 of 14
    flydogflydog Posts: 1,015member

    it's a shame that Apple and the American people have to pay for Trump's vendettas.

    No politician should be dictating corporate policy in a free market.  It's funny how Trump criticizes China -- and then he himself does far worse things -- but the cult follows like sheep.
    But you were fine with Obama dictating corporate policy.
    I don’t see the word Obama anywhere in his post. 
    GeorgeBMac
  • Reply 12 of 14
    SpamSandwichSpamSandwich Posts: 33,408member
    JWSC said:
    JWSC said:
    More good moves. Apple is silent on the matter. But at least they are making moves in the right direction.
    In 12 years it’ll be India that’ll be the problem for the US, as big as China. Hope one day there are massive Free Economic Zones established in the US to reverse this continual overreliance on outside suppliers.
    No Free Economic Zones needed. Here’s what we need to do. Remove all corporate taxes and change the tax revenue source to middle and upper income citizens (bonus - we get to see what we’re really paying). Then remove the minimum wage. That will stimulate the economy like Hong Kong in its pre-handover heyday.

    Yea, I know. Zero chance of that happening.
    I’d be fine with the elimination of most corporate taxes, but that’s the purpose of the Free Economic Zones. Otherwise any taxes eliminated at the Federal level would just be increased at the State level. That’s how these politicians think.
  • Reply 13 of 14
    GeorgeBMacGeorgeBMac Posts: 10,476member
    JWSC said:
    JWSC said:
    More good moves. Apple is silent on the matter. But at least they are making moves in the right direction.
    In 12 years it’ll be India that’ll be the problem for the US, as big as China. Hope one day there are massive Free Economic Zones established in the US to reverse this continual overreliance on outside suppliers.
    No Free Economic Zones needed. Here’s what we need to do. Remove all corporate taxes and change the tax revenue source to middle and upper income citizens (bonus - we get to see what we’re really paying). Then remove the minimum wage. That will stimulate the economy like Hong Kong in its pre-handover heyday.

    Yea, I know. Zero chance of that happening.
    I’d be fine with the elimination of most corporate taxes, but that’s the purpose of the Free Economic Zones. Otherwise any taxes eliminated at the Federal level would just be increased at the State level. That’s how these politicians think.

    It's so unfortunate that governments, like corporations, require money to operate.  /s

    I find it amazing that the anti-taxxers quite ignore the fact the U.S. is built on the infrastructure, regulations and stability that its government created -- and that their wealth derives from that.
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