Roger Fingas
In recent weeks, senior officials from India's Trade Ministry have met with Apple to discuss prospects for setting up manufacturing in the country, a report said on Tuesday.
The company sent a letter to the Indian government last month outlining its plans and asking for financial incentives, two government officials told the Wall Street Journal. The appropriate departments are "looking into" Apple's demands, one of the officials said.
Word of Apple seeking handouts first emerged in early November, but the latest developments suggest that the Indian government is seriously considering the company's proposals in a bid to lure jobs and investment.
For Apple, local production will be necessary if it wants a chance at opening retail stores in the country. Even recently-loosened regulations dictate that foreign, single-brand retailers must source at least 30 percent of their materials from Indian vendors after three years, and so far very little of Apple's supply has come from the region.
Since Apple itself is unlikely to operate any factories, the company is presumably hedging its bets on Foxconn, its main assembly partner which is already said to be pursuing an Apple-oriented factory.
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6 Comments
AI quote...
Word of Apple seeking handouts first emerged in early November, but the latest developments suggest that the Indian government is seriously considering the company's proposals in a bid to lure jobs and investment
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When you consider the infrastructure issues, limited ability for the nations people to afford the productsApple makes, it will take some time for Apple investment to bring rewards. Thus, considering the favorable business details Apple is attempting to negotiate, as handouts, doesn't truly define the reality on the ground. India is a tough nut to crack.
but the good will created and the opportunity to both lessen exposure in China and to further expose the aspirational consumer in India to the products will pay off as Indian consumers prosperity rises, proper infrastructure is built out and a proper QA is established in labor, materials and relationship with the government. A similar but more difficult glidepath in India as compared to China.
Just as I suspected, both India and Apple asking for something. Local production commitment and apple asking for handout. Where is anant sundarak...? comment? I'm very eager for his analysis.
to produce what?.... they are axing most everything ...
I think this is more about Apple sending negotiating signals on behalf of Foxconn. Apple itself will do likely do very little manufacturing. Foxconn is trying to diversify its manufacturing base into India pretty seriously, and we know this from prior news reports. (Similar things vis-a-vis Foxconn and Apple are also happening in the US).
Yes, hard infrastructure is an issue in India, but not if you locate in the outskirts of large cities, especially along the coast, with major ports (e.g., Mumbai, Chennai).
I thought Apple contract out manufacturing to outside firms. Any firm that can satisfy Apple requirements can win the contract. My question is why there is no Indian company come out to do the manufacturing in India? If India is ready to manufacture iPhone in India? I don't think Apple paid Foxconn for the factories and equipments.