8/23/2024

India is in real trouble. Apple is moving back to China

 India is in real trouble. Apple is moving back some production back to China and Foxconn is following close behind, having decided to invest US$1 billion in a new facility in Henan. What does that mean for others catering to the Apple and Foxconn production supply chain in India? They will move out as well.

Apple is facing new allegations and facing a big fine by the Indian Government. Is the Modi Government forcing Apple into the hands of Indian conglomerates like Tata or Adani Group when Apple is not even well grounded in India as yet? That is suicide.

Looking at the other end, what will be the Chinese response to Foxconn moving back to China? China's trust in Foxconn is more or less gone down the drain, and China should know that being self-reliant is the only way to go forward. Foxconn can disappear, but China will always be around. Foxconn's hope to continue with the same services from China's supply chain is not a guarantee, as China is promoting its own high technology companies. For Foxconn, any renewed attempt to salvage its tattered reputation in China is going to take some great effort, if possible. 

Anonymos

2 comments:

Anonymous said...

Well India can ask Apple to go fly kite as it can ask Sinkieland to invest in Durian plantation in India. China will still welcome Foxconn investment, as it will create jobs. This investment will be own by china if the Taiwanese dare to declare independent.

Anonymous said...

Foxconn risks being seized by Modi using retrospective tax laws and the earlier it exits India, the better. India is the graveyard of foreign companies. In China, unless war breaks out, China is not going to seized Foxconn for no apparent reason.