How could iPhone 15 made in India be cheaper than those
made in China, when most of the components have to be sent over from
China and subject to high tariffs? That is why China is not too worried
about Apple moving part of its production to India. What China cannot
benefit from making more iPhones in China, China can make even more just
exporting those components to India. Does the trade war with the USA
provide any clues?
India does not have the supply chains needed
to give Apple an independent existence in India without depending on
China. With the kind of investment environment existing, which Chinese
supply chain would want to set up base in India and risk getting taken
over when successful? They might as well remain in China, do their
business in safety and just export what they produce to India. India
cannot ban import of those components as that will kill the Apple
manufacturing business in India. India can keep increasing tariffs, but
that will be paid by Indian customers, like the USA trade war tariffs on
Chinese imports.
It has been reported that 50% of iPhones made
or assembled in India were found to be faulty in some way or another,
and complaints have been made by the EU against iPhones made in India,
so much so that Tim Cook had been reported to have said that iPhones
made in India will only be sold in India. There were however loose talk
of Apple intending to unload those 'below standard' made in India
iPhones onto the Chinese market, which the Chinese are not going to take
lying down. Chinese customers are asking where those iPhones come from
first before buying them.
Perhaps Apple is trying to pull a fast
one on customers by making those iPhones in India, sent them to China
with some hanky panky done to them, and claimed they were made in China.
If that can be done with Russian oil, why not with others. Question is
how to price those expensive India iPhones cheap enough to compete with
Chinese made iPhones? Even if they sell at a loss, which is not
possible, knowing that Apple makes so much on each iPhone in China,
doing this is going to spoil the reputation of Chinese iPhone makers.
China has to be extremely wary of this.
Right now, Apple is
facing lots of problems with its iPhone 15, said to be tinkering over
overheating complaints. Added to that, Apple is also having problems
with the high electromagnetic radiation with its iPhone 12 which are
above safety levels under EU regulations. Fancy bring this up after so
many years of usage! But rest assured Governments will play it down when
the Emperor's Edit is read to them. Nothing to worry about and it is
very safe.
Now, there is further competition in the Chinese
market, with Huawei rising from the ashes, plus the clampdown over
iPhone usage among Chinese Government circles, coupled with the problems
in the Apple production facilities in India. All these will affect the
bottom line of Apple going forward.
Anonymous
The idea to make iPhones in India was firstly to de-risk dependence on China. What risk was there over the decades that Apple had used China to make so much money and the arrangment had been working fabulously smoothly for Apple? It is all a fabricated hubris cooked up by the USA Government to derail China's advance, clear and simple.
ReplyDeleteThe second idea of Apple was using the cheaper labour cost in India to make more profits, but they forgot to factor in the supply chain issue that India does not have or even coming close. So, it was a miscalculation that is going to be costly for Apple.
Not every manufacturing can work the same way as it did in China. Apple will have to learn a hard lesson. Not only Apple, but TSMC and Samsung are having a taste of trying to emulate their success in China in other places. They are now paying the price.
India may say claim that IPhone were invented by Indian blood. Indua may said the I means India.Iphone means IndiaPhone. Iphone may change to Bphone (BharatPhone). Shake head, shake head.
ReplyDeleteSnake (India) in the Eagle's (USA) Shadow?
ReplyDelete