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India to Become World’s Largest Smartphone Market Soon, Apple to Help

Oğuz Çakır — Tue, 13 Jun 2023 23:34:36 +0000

India is one of the world’s largest economies, with a population of over 1.4 billion people. This makes it a very attractive market for companies looking to sale and manufacture products. Apple, aware of this situation, shifted some of its production from China to India a while ago. It seems that this move has proven beneficial for both parties as Apple propels smartphones into the top five of India’s exports. Here are the details…

Apple’s iPhone Propels Smartphones into Top Five of India Smartphone Exports

India’s smartphone exports have almost doubled in the last year, from $5.4 billion to $10.9 billion. This is a significant increase, and it is largely due to Apple. Apple accounted for about half of India’s smartphone exports in the 2022-2023 financial year, even though this only constitutes 7% of its entire iPhone production.

In 2022, Apple started assembling iPhones in India at its Foxconn factory. This is a major step for Apple, and it is a sign of the company’s confidence in the Indian market. Apple plans to increase its manufacturing presence in India in the future, and this is likely to lead to even more growth in India’s smartphone exports.

India is now the world’s second-largest smartphone market, and it is expected to become the world’s largest smartphone market by 2025. However, the growth of India’s smartphone exports also presents some challenges for the Indian government. The government needs to ensure that the country has the necessary infrastructure to support the growth of the smartphone industry.

This includes things like reliable electricity, good roads, and a skilled workforce. The government also needs to make sure that the Indian market is open to competition, and that there are no barriers to entry for new players. However, the parties are the only way to work together to solve all these problems and meet the needs.

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Foxconn increases pay and bonus package for workers in Zhengzhou, China

Joane — Tue, 30 May 2023 16:00:07 +0000

Apple supplier Foxconn Technology Group has recently increased the pay and bonus packages for newly recruited employees at the world’s largest iPhone factory located in Zhengzhou, China. This move aims to enhance the compensation and benefits offered to individuals joining the company at this key manufacturing facility.

By increasing compensation and providing bonuses, Foxconn seeks to ensure the continued dedication and productivity of its workforce at the Zhengzhou plant, which plays a crucial role in iPhone manufacturing.

Foxconn has introduced a bonus of 3000 yuan ( $424) for new employees at its factories. To qualify for this bonus, individuals are required to work a minimum of 90 days at the factory, earning an hourly pay rate of 21 yuan.

This incentive aims to attract and retain talent by providing an additional financial benefit to those who join the company and commit to a substantial duration of employment. By offering such incentives, Foxconn strives to create a more attractive work environment and reinforce its workforce at its factories. As per a WeChat post by the official Foxconn account, existing workers are eligible to receive a referral bonus of 500 yuan ($71)

Foxconn has recently made two separate increases to worker benefits within the span of a month. On May 3, the loyalty bonus for new recruits who stayed employed for three months at Foxconn was set at 2,000 yuan. However, as of May 22, this bonus has been increased to 2,500 yuan.

In September this year, Apple is expected to unveil the iPhone 15, and production of the new device is projected to commence at the Zhengzhou facility. The Zhengzhou facility, with the capacity to accommodate approximately 200,000 workers, is expected to gear up for production towards the latter part of the year.

Although mainland China continues to serve as Foxconn’s main manufacturing base, the company has sought to diversify its production in response to increasing labor costs and disruptions caused by stringent Covid-19 controls in the previous year. This diversification has led Foxconn to expand its manufacturing operations to countries such as India and Vietnam.

India is expected to play a major role as a production facility for Apple. Foxconn has announced plans to expand its production facility in Chennai, South India. With the recent acquisition of Taiwanese firm Wistron Corp’s factory in southern India, industrial giant Tata Group is now positioned to become Apple’s fourth contract manufacturer for iPhones, solidifying its role in Apple’s global supply chain.

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Apple plans to manufacture Macbook in Thailand, says suppliers

Joane — Fri, 14 Apr 2023 12:21:09 +0000

Apple is reportedly in discussions with suppliers to establish new manufacturing facilities in Thailand to produce Macbooks. This decision is in line with Apple’s strategy to gradually reduce its dependence on China and increase its footprint in other Asian nations, given the ongoing trade conflict between the US and China.

This news originates from Thailand’s suppliers, who are currently collaborating with Apple to manufacture the Apple Watch. The suppliers who are in discussions with Apple already possess established manufacturing facilities in Thailand that are utilized by other brands. They are currently in talks with Apple to establish a distinct assembly and production line in their factories to manufacture Macbooks.

According to some suppliers, they have begun constructing production facilities in Thailand for Apple’s MacBook, with an expected completion date by the end of this year. Initially, Apple had requested the establishment of new factories in Vietnam, but these suppliers proposed using existing spaces in Thailand instead. One of the suppliers stated that although Apple had approached them regarding setting up a plant in Vietnam, they presented a better alternative of utilizing their extensive space and production capabilities in Thailand.

The suppliers further stated that though MacBook assemblies happen in Vietnam, some of the components could be supplied from the Thailand plant. Also, suppliers have assured Apple the logistics and customs clearance would take no more than three days.

Why choose Thailand?

Apple is planning to move away from China to avoid the pressure from the ongoing US-China trade sanctions. The company is planning to set up Vietnam as its base in Asia and is already producing iPads and Airpods in the country.

However, Thailand also looks like a plausible choice as the country offers a highly competitive manufacturing market with abundant raw materials, low-cost labor, and innovative technologies.

Moreover, the Thai government also encourages the manufacturing sector as it accounts for the majority of Thailand’s total exports and generates a large volume of jobs, amounting to almost six million workers in 2021 alone. As of the fourth quarter of 2021, the share of the manufacturing sector in the Thai economic contribution was 34%, preceding other major industries like service and trade.

Why are brands leaving China?

During the 1990s, when globalization became popular countries across the world started offshoring their manufacturing and service industries to nations that offered low-cost and cheap labor and resources. China topped the list of offshore nations and blossomed into a global manufacturing hub as it presented the perfect blend of a skilled labor force and a prospering middle class interested in purchasing Western products, making it an ideal choice for both manufacturing and marketing.

However, due to the US-China trade war, companies are now trying to move their production to friendly countries where they don’t need to worry about getting caught in the geopolitical line of fire.

Apple has already begun shifting its base from China to Vietnam and India. Many famous brands like Samsung, Hasbro, Volvo, Adidas, and more have shifted their major base from China to Vietnam and other countries.

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Apple could be exempted from China Tariffs & It’s probably because of Samsung

Joel Joseph — Fri, 22 Nov 2019 10:18:39 +0000

The Trump administration is reportedly considering to exempt Apple from the upcoming round of China tariffs on iPhones, iPads, and MacBooks reports WSJ. While this would ensure Apple devices stay competitive, Samsung’s current manufacturing situation could have a greater role to play in this decision.

Most of Apple’s manufacturing is based in China. So a tariff on imports from China will adversely affect the Cupertino giant’s sales in the country. And with iPhones and Macbooks becoming costlier, other brands like Samsung would get an unfair advantage. That’s because Samsung has shifted most of its smartphone and device manufacturing outside of China, in huge factories based in countries like Vietnam and India. So if Apple was to bear the brunt of the recent China tariffs, iPhones would get a lot more expensive as compared to Samsung’s flagship Galaxy series in the U.S.

“The problem we have is you have Samsung, it’s a great company, but it’s a competitor of Apple. And it’s not fair because we have a trade deal, we made a great trade deal with South Korea. But we have to treat Apple in a somewhat similar basis as we treat Samsung,” Trump was quoted as saying by WSJ.

Trump made this statement during his visit to the new $1 billion, 133-acre campus in Austin, Texas that’s being constructed beside the already-functional Mac Pro production facility. The campus will house 5,000 employees when it opens in 2022, which can be further scaled to accommodate 15,000 employees in the future.

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