This article comes from the WeChat public account: Zhixiang (ID: passagegroup) , author: Liu Di Qing, title figure from: original
Apple really wants to “empathize” India? Or is it wishful thinking in India?
In April this year, the Indian Ministry of Electronics and Information Technology announced that it will launch a production-related incentive plan (Production Linked Incentive Scheme) , totaling 480 billion Rupee to promote the development of the local electronics manufacturing industry.
Under this incentive plan, Rs 400 crore will be used for rewards linked to manufacturing. Starting from August this year, the Indian government will award 4% to 6% incentives for the incremental sales of mobile phones and designated electronic components such as printed circuit boards, photosensitive polymer films and components.
Mobile phone manufacturers with a total investment of more than 10 billion rupees in four years can receive an additional 6% in the first two years, and 5% in the next two years. Get a 4% reward for five years.
Under such incentives, local Indian mobile phone manufacturers have responded. Lava, for example, said it will move the company ’s production line from China to India within six months. But whether this measure can attract foreign mobile phone manufacturers is not easy to say.
In recent years, news that Apple plans to transfer its supply chain to other countries and diversify its development has spread frequently in recent years. Among them, the most attracted attention from the outside world is that Apple will transfer part of the production capacity of the Chinese industrial chain to India. Recently, according to India ’s Economic Times, Apple is about to transfer about one-fifth of its manufacturing capacity in China to India.
However, when all sectors of India called for “undertaking” the industrial chain transferred from China, even if the Chinese supply chain was affected by the new crown epidemic, Apple still continued to overweight China.
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According to “Nikkei News”, Apple recommends that it build AirPods’s Licent Precision Industry Co., Ltd. (“Licent Precision”) , invest in (“Kecheng Technology”) , a supplier of iPhone and MacBook metal cases. Apple hopes to find an alternative to Foxconn through this move.
Frequently spreading Apple’s supply chain to India
Parts from China, screens from Japan and South Korea, and chips from the United States are shipped to the contractor ’s huge manufacturing plant for assembly. The finished products are sent to various markets around the world, and finally placed in Apple ’s design monopoly Shop sales. Products made at low cost ultimately generate huge wealth gains and profits.
Apple ’s supply chain system may be one of the company ’s most commendable masterpieces, making it one of the most profitable companies in history.
On May 11, according to Indian Economic Times, citing people familiar with the matter, Apple is studying to transfer about one-fifth of its existing manufacturing capacity in China to India, and will be in India in the next five years. ‘S supply chain capacity expanded to US $ 40 billion.
“We expect that Apple will produce smartphones with a total value of up to 40 billion US dollars, using the production incentive plan issued by India (PLI, Production Incentive Scheme) , will be mainly exported through iPhone manufacturers Wistron and Foxconn. “A senior Indian government official said.
Apple’s relocation of the industry chain to India is no longer new. Last year, the Chinese market tightened after the Sino-US trade friction, making Apple eager to find emerging overseas markets. According to Bloomberg’s report in April last year, Hon Hai Group Chairman Guo Taiming stated that Foxconn will mass-produce iPhones in India and will mainly serve the local Indian and export markets.
In the past, Foxconn ’s factories in India mainly produced old iPhones, or produced equipment for Xiaomi and Nokia. Finally, Foxconn seems determined to take the industrial chain of iPhone production in ChinaA large number of relocated to India, they said they will invest 5 billion US dollars to build a local plant.
Foxconn Image Source: CNBC
However, in less than a year, Foxconn ’s plan to set up a new plant in India was “abortion.” In January this year, Subhash Desai, Minister of Industry of Maharashtra, said that the plan to cooperate with Foxconn to establish an electronic product manufacturing plant has been cancelled.
But it did n’t take long, in March, because of the impact of the new crown virus on China ’s manufacturing industry, the discussion on the risk of Apple ’s decentralized industry chain was raised again. According to reports, many Apple Chinese production partners are considering going abroad to build factories, and India, Vietnam and Mexico have become their destinations.
It is reported that Wistron plans to adjust production in India, Vietnam and Mexico and allocate 1 billion US dollars for expansion this year and next; another iPhone assembler Heshuo also said that they hope to establish a new factory in Indonesia At the same time, the manufacturing business in Vietnam was started before 2021; AirPods’ main assembler Inventec said that the company is planning to open a production line in Vietnam.
The outside world generally believes that the decisions of Apple partners such as Wistron, Foxconn, Inventec and Pegatron will reshape the technology supply chain.
As Apple moved part of the industry chain to India and was repeatedly discussed on the stage, there are still many doubts about whether India can take this opportunity.
Previously, when Apple made it clear that it would not produce iPhone 11 in India, a Foxconn executive once told the Wall Street Journal, “India ’s roads, ports and infrastructure are far behind China. The supply chain is not in place, India Workers are not yet ready to produce high-end organic light-emitting diode (OLED) models. “
India lacks supply chain and infrastructure,