Mass Production of iPhones to Start in India(bloomberg.com)
bloomberg.com
Mass Production of iPhones to Start in India
https://www.bloomberg.com/news/articles/2019-04-15/foxconn-is-poised-to-begin-mass-production-of-iphones-in-india
80 comments
What makes you think you will not pay a premium for iPhones in India in the future?
Apple prices based on demand curves, not supply costs.
Apple prices based on demand curves, not supply costs.
India has a really high import tax on electronic items. Even if Apple charges a slight premium over its US prices, it's still going to be significantly cheaper than what it currently is.
For example: a 64 GB iPhone X is currently selling for around 1100 dollars.
For example: a 64 GB iPhone X is currently selling for around 1100 dollars.
Or they keep them the same price and make even more impressive margins. There's a reason they have 87% of the world smartphone profit share [1] and it's not because they're giving them away or passing on the cost savings to their customers.
Import duty on iPhones is 18% and 28% on iPads as of 2015. [2] Wealth inequality in India is pretty high (not as high as in the US, though, GINI 35.6 vs 40.4), and it's GDP per capita is just $1,939. Per your data, they're currently charging $1,100 which is a whopping 57% of GDP per capita.
My gut tells me reducing the price of a super-luxury good by 18% won't increase demand enough to make up for pocketing the 18% savings. That would be like pricing an iPhone at $33,000 in America. I can't imagine reducing the price to $27,000 would dramatically increase the number of buyers. Or a Rolex from $100K to $82K.
I guess we'll see!
[1] https://www.forbes.com/sites/chuckjones/2018/03/02/apple-con...
[2] https://www.labnol.org/india/custom-import-duties/19306/
Import duty on iPhones is 18% and 28% on iPads as of 2015. [2] Wealth inequality in India is pretty high (not as high as in the US, though, GINI 35.6 vs 40.4), and it's GDP per capita is just $1,939. Per your data, they're currently charging $1,100 which is a whopping 57% of GDP per capita.
My gut tells me reducing the price of a super-luxury good by 18% won't increase demand enough to make up for pocketing the 18% savings. That would be like pricing an iPhone at $33,000 in America. I can't imagine reducing the price to $27,000 would dramatically increase the number of buyers. Or a Rolex from $100K to $82K.
I guess we'll see!
[1] https://www.forbes.com/sites/chuckjones/2018/03/02/apple-con...
[2] https://www.labnol.org/india/custom-import-duties/19306/
Apple's market share in India is about 2% while in China it's about 7 percent. Apple's profit margin is generally about 30%.
The import tax in India is now 20%. Lets suppose Apple could increase market share in India to match that in China by reducing prices by the 20% tax, and compare that to keeping the 20% as extra profit but not increasing market share.
2% market share on 50% profit margin (existing 30% margin plus tax margin of 20%) sounds pretty good. However 30% profits on 7% market share yields more than double the overall profits.
Finally, all the arguments you make for charging more apply equally well anywhere in the world. So why doesn't Apple charge India prices everywhere in the world already? A simple argument that increased profit margin always beats higher sales implies that the perfect price point is infinity. At some point this strategy must yield diminishing returns.
The import tax in India is now 20%. Lets suppose Apple could increase market share in India to match that in China by reducing prices by the 20% tax, and compare that to keeping the 20% as extra profit but not increasing market share.
2% market share on 50% profit margin (existing 30% margin plus tax margin of 20%) sounds pretty good. However 30% profits on 7% market share yields more than double the overall profits.
Finally, all the arguments you make for charging more apply equally well anywhere in the world. So why doesn't Apple charge India prices everywhere in the world already? A simple argument that increased profit margin always beats higher sales implies that the perfect price point is infinity. At some point this strategy must yield diminishing returns.
> Finally, all the arguments you make for charging more apply equally well anywhere in the world. So why doesn't Apple charge India prices everywhere in the world already?
They kind of do, except they're slowly easing into it. First iPhone was 499 USD for the base model. iPhone X was 999 USD for the base model.
So over 10 years, they slowly raised their prices 100 %.
They kind of do, except they're slowly easing into it. First iPhone was 499 USD for the base model. iPhone X was 999 USD for the base model.
So over 10 years, they slowly raised their prices 100 %.
Or else the cost of producing a relatively small number of phones inside India won't be as cheap as the global HQ operation. If import taxes were the only consideration, you might expect them to open a new small factory when the extra cost of running it was about equal to the taxes.
Quite a few countries have car industries which work roughly like this -- the local VW plant will cost twice as much to run (per car) as the mothership, roughy matching a 100% import tax. (Although in reality there is often more to the story, like producing exactly one model there & exporting those for credit against imports...)
Quite a few countries have car industries which work roughly like this -- the local VW plant will cost twice as much to run (per car) as the mothership, roughy matching a 100% import tax. (Although in reality there is often more to the story, like producing exactly one model there & exporting those for credit against imports...)
India raised it to 20% in 2018. https://money.cnn.com/2018/02/01/technology/india-iphone-tar...
Then there is 12% tax on top of that.
Then there is 12% tax on top of that.
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Sales might even reduce, because some people might not consider them luxury enough anymore.
> a 64 GB iPhone X is currently selling for around 1100 dollars.
That isn't right. The iPhone X costs (just under) 1,00,000 INR retail in India, which is over 1400 usd.
This includes taxes.
For reference: https://www.flipkart.com/mobiles/apple~brand/pr?sid=tyy,4io&
That isn't right. The iPhone X costs (just under) 1,00,000 INR retail in India, which is over 1400 usd.
This includes taxes.
For reference: https://www.flipkart.com/mobiles/apple~brand/pr?sid=tyy,4io&
That’s what Apple usually does: they keep roughly the same digits, and change the currency. And it usually makes their products significantly more expensive outside of the US.
I live in Sweden, and the pricing will go like this:
- The US: $999
- The EU: €999
- Sweden: 9900 SEK
Depending on currency rates, it can become up to 30% more expensive.
My favorite discovery was around the time of the trashcan MacPro. It was cheaper to fly to New York, buy the Mac, and fly back than to buy one in Sweden. And you would still have money left over.
I live in Sweden, and the pricing will go like this:
- The US: $999
- The EU: €999
- Sweden: 9900 SEK
Depending on currency rates, it can become up to 30% more expensive.
My favorite discovery was around the time of the trashcan MacPro. It was cheaper to fly to New York, buy the Mac, and fly back than to buy one in Sweden. And you would still have money left over.
"That’s what Apple usually does: they keep roughly the same digits, and change the currency."
It makes no sense comparing US and EU prices directly, as the former are always shown without VAT (which varies state from state), and in the latter the VAT is included (which is specific to each country).
Also, price will fluctuate even across EU countries, on account of different VAT taxes in the individual member states, so that Apple "keeps the same digits" it is simply not true, as a rule:
iPhone X 64GB USA(no VAT): 999$ https://www.apple.com/us_kiosk_5000012/shop/buy-iphone/iphon...
iPhone X 64GB Italy (VAT 22%): 1189€ https://www.apple.com/it/shop/buy-iphone/iphone-xs
iPhone X 64GB Spain (VAT 21%): 1159€ https://www.apple.com/es/shop/buy-iphone/iphone-xs
The only way to compare them is to remove VAT, for example in the case of Italy:
1189/(1+0.22)= 974€ -->> 1100$ (current exchange rate).
So, there is about 10% difference, which could be (partly) accounted for due to the different warranty requirements in EU.
EDIT: Fixed math
It makes no sense comparing US and EU prices directly, as the former are always shown without VAT (which varies state from state), and in the latter the VAT is included (which is specific to each country).
Also, price will fluctuate even across EU countries, on account of different VAT taxes in the individual member states, so that Apple "keeps the same digits" it is simply not true, as a rule:
iPhone X 64GB USA(no VAT): 999$ https://www.apple.com/us_kiosk_5000012/shop/buy-iphone/iphon...
iPhone X 64GB Italy (VAT 22%): 1189€ https://www.apple.com/it/shop/buy-iphone/iphone-xs
iPhone X 64GB Spain (VAT 21%): 1159€ https://www.apple.com/es/shop/buy-iphone/iphone-xs
The only way to compare them is to remove VAT, for example in the case of Italy:
1189/(1+0.22)= 974€ -->> 1100$ (current exchange rate).
So, there is about 10% difference, which could be (partly) accounted for due to the different warranty requirements in EU.
EDIT: Fixed math
Nice analysis. If you factor in local sales taxes in the US, that 10% difference shrinks or even disappears pretty fast.
I'm afraid 'Apple charges more abroad' is largely a fallacy. Where there is a difference, it's almost always pretty clearly due to local taxes or costs of doing business. This used to really piss off Steve J[1] because he saw it as terribly unfair.
[1] https://www.imore.com/steve-jobs-international-ipad-pricing-...
I'm afraid 'Apple charges more abroad' is largely a fallacy. Where there is a difference, it's almost always pretty clearly due to local taxes or costs of doing business. This used to really piss off Steve J[1] because he saw it as terribly unfair.
[1] https://www.imore.com/steve-jobs-international-ipad-pricing-...
> If you factor in local sales taxes in the US, that 10% difference shrinks or even disappears pretty fast.
If you factor in sales tax on the US side, you also have to factor in VAT on the EU side, since they are equivalent.
So that 10% difference is correct.
If you factor in sales tax on the US side, you also have to factor in VAT on the EU side, since they are equivalent.
So that 10% difference is correct.
European countries often have a minimum 5 year warranty on electronics sold to consumers, while Apple's extended warranty costs more than 10% for just two years, so that's got to be an important factor too. AppleCare is probably better than what's required by law in Europe though.
Where does law say to give 5 years warranty? I'm only aware of 2 years.
State sales tax ranges from 0-7%, with a few localities adding a few percentage points in top of it.
VAT ranges from 17% to 27%.
VAT ranges from 17% to 27%.
Sweden is still in the EU, it has higher VAT than (say) Germany as well. Also iphone x is ~865 on amazon.de[0]. You can order with within the EU (see the 1st sense again), the delivery would be around ~10€, but the price is to be a bit higher due to VAT diff. Side benefit of amazon is that you will never need to deal with apple repair services as you can send the goods back to amazon.
US price has no sale tax (which varies per state and county)
To sum up: if you find the goods at any retailer in the EU, buy them online and pay for the delivery - for light products (electronics), the shipment costs are low when not 'free'.
[0]:https://www.amazon.de/Apple-iPhone-X-64GB-Space-Grau/dp/B075...
US price has no sale tax (which varies per state and county)
To sum up: if you find the goods at any retailer in the EU, buy them online and pay for the delivery - for light products (electronics), the shipment costs are low when not 'free'.
[0]:https://www.amazon.de/Apple-iPhone-X-64GB-Space-Grau/dp/B075...
Note that within the EU, as soon as you sell over a certain limit to a member country you have to charge VAT in the destination country. So large retailers will list prices with their respective VAT included and then re-calculate prices when you get to the payment stage (when they know which country you order from).
Sure, hence that part in my reply and mentioning higher VAT of Sweden. The amounts needed to apply per country VAT are rather low as well (like 35k, iirc).
>>but the price is to be a bit higher due to VAT diff.
Sweden has 25% which is pretty high, compared to the 19% Germany.
>>but the price is to be a bit higher due to VAT diff.
Sweden has 25% which is pretty high, compared to the 19% Germany.
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Canada: $1379. (On the $999-in-the-US iPhone XS.)
They do not always use the round numbers.
They do not always use the round numbers.
Seeing as most Canadians live near the US border maybe they go closer to American prices there as there's a lower barrier for Canadians to cut the fat margins by crossing the border and buying in the US?
Including VAT and import duties? I find that very hard to believe.
Open the box and plug it in while in the states. Now it’s just property you brought along, not imported goods, so no duties to pay. I ain’t no lawyer though, and this is just advice I’ve been given in the past, so mileage may vary etc. (I wouldn’t be surprised if it’s entirely wrong, someone please correct me!)
I'm pretty sure that's legally fraud, but yes, there's a good chance you'd get away with it.
Unless you're buying it with an explicit purpose to sell it off and avoid the import taxes that way it's absolutely not fraud. You are legally allowed to buy something for yourself while abroad and bring it back.
That's why you get certain allowances of how much you are allowed to bring back with you - say up to 200 cartons of cigarettes are free to bring over and that's clearly not something that you brought with you.
That's why you get certain allowances of how much you are allowed to bring back with you - say up to 200 cartons of cigarettes are free to bring over and that's clearly not something that you brought with you.
In the case of Sweden, the personal duty-free allowance absolutely does not run to the cost of a specced-out Mac Pro: https://ec.europa.eu/taxation_customs/individuals/travelling...
> Other goods (including perfume, coffee, tea, electronic devices etc.)(a) - Up to a value of €430 for air and sea travellers
> Other goods (including perfume, coffee, tea, electronic devices etc.)(a) - Up to a value of €430 for air and sea travellers
It's one law that every single country has on the books and no one ever enforces - observe how it has no provision for anything that you actually own, if you go out of EU with your MacBook Pro and come back you should technically be declaring it at customs as an item over the allowance value. You should be declaring your phone and your watch if it's an expensive one too. Literally no one does this, and if you do try declaring those items you will be just waived through for wasting the guard's time.
You have very strong opinions for someone who really doesn't understand import/export at all.
Of course things you owned, left the country and are returning with are exempt.
Import Duties apply to items purchased while outside the country and that you are returning with.
If you were away long enough to establish residency, there are usually exemptions to items of personal property you are bring back with you.
The duty-free allowance is different for every country, but in Germany for example it is around 450€ per person (the exact number escapes me). Any goods you return with in excess of that amount is subject to duty.. Some items you return with are always subject to duties.
In Germany for example, they very much will check for this and enforce it.
Of course things you owned, left the country and are returning with are exempt.
Import Duties apply to items purchased while outside the country and that you are returning with.
If you were away long enough to establish residency, there are usually exemptions to items of personal property you are bring back with you.
The duty-free allowance is different for every country, but in Germany for example it is around 450€ per person (the exact number escapes me). Any goods you return with in excess of that amount is subject to duty.. Some items you return with are always subject to duties.
In Germany for example, they very much will check for this and enforce it.
If it is fraud, then at what point is it not? If I used it for a day/week/month before bringing it, is it ok? Intent matters I suppose, but how do you prove intent to circumvent import duties, versus just bringing my stuff? I genuinely don't know, seems like a lot of gray area.
IANAL, but I think if you were legally resident in the USA for some number of years, and then moved to the EU, you could bring your personal possessions with you.
If you travel to the USA for a week and buy something, that's subject to import duty.
If you travel to the USA for a week and buy something, that's subject to import duty.
I believe it would reduce the import duty on the devices manufactured in India.
Exactly. When Apple started manufacturing some of their phones in Brazil, the prices didn't change, but their profit margin sure did.
A significant portion of the cost is because of import taxes. They usually are high but have been increased further of late.
indeed, I recall being in Thailand where HD's are (were?) built, and buying one still costed aprox 2x the price in the USA.
The company manufacturing on the outskirts of Bangalore is Wistron. Not Foxconn.
The glory days of iPhones are over.Its gonna be 10k less than the existing one and it's still for top 1 or 2 %
The top 1% of India is about 13 million people so it isn’t necessarily crazy for apple to only target a small proportion of the population.
Due to massive taxes for pre-built smartphones and less taxes for components(A tactic effectively employed to pressure manufactures to make their phone in India), top tier iPhones cost the highest in India. When these are manufactured in the country, it should match the price of other countries.
But that doesn't mean it will become affordable, Apple has positioned itself as a luxury brand & is said to have the largest markup among smartphone manufacturers.
Indians looking for cost/value will always have better alternative, but for those 'Who value themselves upon what others see in their hands' will burn lesser cash than before.
But that doesn't mean it will become affordable, Apple has positioned itself as a luxury brand & is said to have the largest markup among smartphone manufacturers.
Indians looking for cost/value will always have better alternative, but for those 'Who value themselves upon what others see in their hands' will burn lesser cash than before.
If it were cheaper to build iPhones in India Apple would have been doing that from the start. If you’re lucky prices will remain the same but they probably will go up.
> Tired of paying a premium for Apple products in India.
I might be wrong but, I think, OP might be referencing to the fact that phones manufactured in India are exempt from import tarrifs (cross trade avg of around 14%).
https://www.export.gov/article?id=India-Import-Tariffs
I might be wrong but, I think, OP might be referencing to the fact that phones manufactured in India are exempt from import tarrifs (cross trade avg of around 14%).
https://www.export.gov/article?id=India-Import-Tariffs
The price of the phone is not based on tariffs. We’ll see.
My guess is that they are only doing this to meet the local restrictions in order to open stores, avoid extra taxes inside of India.
Good for everybody when knowledge to produce high end electronics at scale is not exclusive to China.
India should demand that the Chinese firm share their manufacturing techniques.
Foxconn is setting up the manufacturing. I'm sure they intend to share the techniques with themselves.
Pretty meaningful change. Hopefully the advent of this will result in increased social mobility and the rise of a homegrown hardware technology industry in the coming years.
This is so against globalisation and global trade it‘s not even funny.
Totally cool if Apple did this voluntarily, but the only reason they‘re doing it is to prevent high import taxes.
India is a huge market. So it‘s all good. Brazil is a good deal smaller and requires the same thing. So does Argentina (and is even smaller). Now imagine every country would do this.
India is a huge market. So it‘s all good. Brazil is a good deal smaller and requires the same thing. So does Argentina (and is even smaller). Now imagine every country would do this.
In some ways, every third-world country in the world SHOULD do this. I say this as an Indian iPhone user.
iPhones are a luxury product. A tax on imported high end electronics is a tax on the well-off. Not only that, it's the best kind - a tax that an end-user can choose whether or not they want to pay.
iPhones are a luxury product. A tax on imported high end electronics is a tax on the well-off. Not only that, it's the best kind - a tax that an end-user can choose whether or not they want to pay.
> A tax on imported high end electronics is a tax on the well-off.
According to the latest market research [1] in China, IPhone are mostly used in China by undereducated people with relatively low income, people with decent education & job mostly use Android phones.
This is consistent with what I see on daily basis - almost all my friends & coworkers use MacBook Pro + Huawei/Xiaomi phone. If I try really really hard, I can probably eventually list 1-2 friends & coworkers who use iPhone, but like I said, I need to try hard to recall that.
[1] https://www.scmp.com/tech/article/2174310/research-highlight...
According to the latest market research [1] in China, IPhone are mostly used in China by undereducated people with relatively low income, people with decent education & job mostly use Android phones.
This is consistent with what I see on daily basis - almost all my friends & coworkers use MacBook Pro + Huawei/Xiaomi phone. If I try really really hard, I can probably eventually list 1-2 friends & coworkers who use iPhone, but like I said, I need to try hard to recall that.
[1] https://www.scmp.com/tech/article/2174310/research-highlight...
In most ways they shouldn't, poorer countries have been doing rather well out of globalisation. If trade wars started all over the world they would suffer the most.
> poorer countries have been doing rather well out of globalisation.
Rich countries as well, lot of pharma drugs sold in the US come from India.
Rich countries as well, lot of pharma drugs sold in the US come from India.
For non-essential products, yes, I think most developing countries should impose an import tax on non-essential luxuries. In India same rules apply to imported cars as well - which has massively helped local industry because Mercedes, BMW, Audi all have factories here. There's no reason for Apple to get special treatment.
India makes medicine cheap and iPhones costly. And you are complaining?
> India is a huge market.
There was a time when the British destroyed the textiles trade in India and made everyone buy stuff made in Manchester. Before that India had 25% or so of the global market.
With a billion or so people living in the sub-continent there should be an indigenous mobile phone and eco-system that suits the market better than what Silicon Valley can provide. China can do it, Europe used to be able to do it. It is not as if India is short of highly educated software engineers. If, instead of everyone in India having an Indian mobile phone, everyone has an iPhone then everyone is going to be sending off a portion of their wealth off to Cupertino (even if that money ends up in off shore tax havens).
There are national security issues with this, regardless of how well Apple claim they are on the side of privacy. Just for sovereignty reasons the Indian government should be using heir own tech instead of providing incentives for Apple to set up shop.
There was a time when the British destroyed the textiles trade in India and made everyone buy stuff made in Manchester. Before that India had 25% or so of the global market.
With a billion or so people living in the sub-continent there should be an indigenous mobile phone and eco-system that suits the market better than what Silicon Valley can provide. China can do it, Europe used to be able to do it. It is not as if India is short of highly educated software engineers. If, instead of everyone in India having an Indian mobile phone, everyone has an iPhone then everyone is going to be sending off a portion of their wealth off to Cupertino (even if that money ends up in off shore tax havens).
There are national security issues with this, regardless of how well Apple claim they are on the side of privacy. Just for sovereignty reasons the Indian government should be using heir own tech instead of providing incentives for Apple to set up shop.
what's up with so much nationalism coming from India?
why would it matter where you're sending a portion of your so-called "wealth" when you're getting something in return?
considering the horrific state India is in (high corruption, high poverty, low healthcare, no infrastructure, you name it), the location of where an iPhone is produced should literally be the last thing the government cares about.
maybe the value of the potential taxes are too much for the government not to stick their hands in?
why would it matter where you're sending a portion of your so-called "wealth" when you're getting something in return?
considering the horrific state India is in (high corruption, high poverty, low healthcare, no infrastructure, you name it), the location of where an iPhone is produced should literally be the last thing the government cares about.
maybe the value of the potential taxes are too much for the government not to stick their hands in?
It’s because where the money goes is where it circulates, which ultimately affects the GDP.
Every dollar that leaves India, Nigeria or any other developing country is one less dollar that can pay for jobs (plumbers, electricians, doctors etc) in the local market.
South Africa used to have very restrictive currency export controls partly due to apartheid-era sanctions, and one consequence is that it stimulated domestic production and innovation, perhaps far more than any other African country. They’ve now relaxed those controls but it is arguable that they were necessary at that stage of their economic development.
Every dollar that leaves India, Nigeria or any other developing country is one less dollar that can pay for jobs (plumbers, electricians, doctors etc) in the local market.
South Africa used to have very restrictive currency export controls partly due to apartheid-era sanctions, and one consequence is that it stimulated domestic production and innovation, perhaps far more than any other African country. They’ve now relaxed those controls but it is arguable that they were necessary at that stage of their economic development.
>why would it matter where you're sending a portion of your so-called "wealth" when you're getting something in return?
Perhaps the "wealth" you're sending and what you're getting back are qualitatively different and you have reason to prefer one over the other. Or even more simply, perhaps what you're getting in return isn't worth more than what you're giving. As an aside, in the philosophy of exploitation, it is entirely possible for exploitation to exist even if both the exploiter and the exploited benefit in some way in the transaction.
Perhaps the "wealth" you're sending and what you're getting back are qualitatively different and you have reason to prefer one over the other. Or even more simply, perhaps what you're getting in return isn't worth more than what you're giving. As an aside, in the philosophy of exploitation, it is entirely possible for exploitation to exist even if both the exploiter and the exploited benefit in some way in the transaction.
> considering the horrific state India is in (high corruption, high poverty, low healthcare, no infrastructure, you name it),
You missed jobs in that statement, Iphone factory brings jobs directly and indirectly in that region. Try looking at the big picture.
You missed jobs in that statement, Iphone factory brings jobs directly and indirectly in that region. Try looking at the big picture.
In the automotive sector India has its own successful manufacturers.
Tata now owns a whole slew of British auto companies in Jaguar/Land Rover. So, despite these horror stories of corruption, someone in the Indian auto sector is doing something right.
I don't see why, given the market size, that India can't have its own full stack of mobile phone tech, operating systems, apps and everything else. Why settle for crumbs from the Apple table? Why settle for a few jobs for the profits to go back to Cupertino? The Tata Steel example is proof that dreams don't have to be downsized and that countries have to be beholden to American corporations.
Tata now owns a whole slew of British auto companies in Jaguar/Land Rover. So, despite these horror stories of corruption, someone in the Indian auto sector is doing something right.
I don't see why, given the market size, that India can't have its own full stack of mobile phone tech, operating systems, apps and everything else. Why settle for crumbs from the Apple table? Why settle for a few jobs for the profits to go back to Cupertino? The Tata Steel example is proof that dreams don't have to be downsized and that countries have to be beholden to American corporations.
> Why settle for a few jobs for the profits to go back to Cupertino?
You may have the luxury to say that, lot of Indians dont. They need that job.
You may have the luxury to say that, lot of Indians dont. They need that job.
Globalization is a big word.
At least in the context of the last few generations, this is not an unusual avenue to globalization. It's pretty much the template followed by auto manufacturing as it globalised, for example.
At least in the context of the last few generations, this is not an unusual avenue to globalization. It's pretty much the template followed by auto manufacturing as it globalised, for example.
Even America wants some of the high end manufacturing jobs back...
Do you know if these phones will be exported to the US or just for domestic consumption in India?
Also how "complicated" is the manufacturing? Is it just lsat-mile assembling of all pre-made components shipped in from the US, China, Germany, et al. or the same technical processes and complexity that goes on in one of these Chinese plants that pump out the iPhone X, XS and XS Maxes?
Also how "complicated" is the manufacturing? Is it just lsat-mile assembling of all pre-made components shipped in from the US, China, Germany, et al. or the same technical processes and complexity that goes on in one of these Chinese plants that pump out the iPhone X, XS and XS Maxes?
This illustrates why all of those stories[1] about why Apple can't manufacture in the USA are relatively hollow.
Apple doesn't manufacture in the US as they are not forced to manufacture in the US. If they were, they'd make it happen and work-around any issues, just as they have in India.
Apple doesn't want to manufacture in India (via Foxconn) but the Indian regulations and government didn't budge which forced Apple's and Foxconn's hand. Result: Apple/Foxconn is now making iPhones in India.
If the US citizens stood up for their own interests more, then there would be a Made in the USA iPhone... perhaps more expensive than a China made one, but Apple may decide to absorb the margin hit to retain marketshare in their largest market.
[1] https://www.theverge.com/2019/1/28/18200330/why-apple-cant-m...
Apple doesn't manufacture in the US as they are not forced to manufacture in the US. If they were, they'd make it happen and work-around any issues, just as they have in India.
Apple doesn't want to manufacture in India (via Foxconn) but the Indian regulations and government didn't budge which forced Apple's and Foxconn's hand. Result: Apple/Foxconn is now making iPhones in India.
If the US citizens stood up for their own interests more, then there would be a Made in the USA iPhone... perhaps more expensive than a China made one, but Apple may decide to absorb the margin hit to retain marketshare in their largest market.
[1] https://www.theverge.com/2019/1/28/18200330/why-apple-cant-m...
However there would be a lot less choice because not all Android phone manufacturers are going to bother and the prices are going to go up because of less competition and higher costs for everyone. Also consider that other countries are going to respond to this kind of protectionism which is not free.
Hopefully, sane-priced iPhones in India I guess. I'm interested now.
supernova87a(4)
I as a customer am super glad this is coming along. Tired of paying a premium for Apple products in India. In addition to iPhones I seriously hope they start iPad manufacturing as well. IMHO iPads will probably have a better success rate in India once the prices reach parity with US.