Apple’s manufacturing shift to India hits stumbling blocks

[Cheepek]

Stumbling blocks

WSJ News Exclusive | Top Apple Supplier Plans Major India Expansion

Foxconn Technology Group looks to build new plants and ramp up existing iPhone production facility.

www.wsj.com

 

[Tafob]

Foxconn to set up manufacturing unit in Telangana, ‘to create 1 lakh jobs’​

The Telangana government and Hon Hai Technology Group (Foxconn) Thursday joined hands to set up the multinational Taiwanese electronics company’s manufacturing unit in the state. A note from the chief minister’s office said the Taiwanese electronics manufacturer will set up its plant paving way for the creation of one lakh jobs over the next 10 years.

“It is one of the largest investments in the electronics sector in the country. It is very rare that lakhs of people are directly employed by a single company,” it said.

https://twitter.com/x/status/1631475436114030592

Foxconn chairman Young Liu, at the launch of T-Works, said “I am very impressed. On our way to the hotel, I said to myself is this India? And when I saw T-Works, how this happened in such a short period, It made me realise Telangana’s speed is so fast.”

Further, “speed is the essence of the hi-tech industry. Speed is very crucial and you can do almost everything in the hi-tech world. Telangana’s speed gave me confidence that by working with Telangana we are very likely to double the revenue of Foxconn. With Telangana’s speed it is very very possible in four years,” the Foxconn chairman said, adding that Foxconn would donate to T-Works an SMT (Surface Mount Technology) assembly line, used for assembling high-end electronics circuit boards.

 

[nahtanbob]

Apple’s manufacturing shift to India hits stumbling blocks​

Patrick McGee in San Francisco and John Reed in New Delhi

FEBRUARY 14 2023

Apple is hitting stumbling blocks in its effort to increase production in India, as the US tech giant faces pressure to cut its manufacturing reliance on China. The iPhone maker has been sending product designers and engineers from California and China to factories in southern India, to train locals and help establish production, according to four people familiar with the operations.

It comes as Apple attempts to unwind its dependence on a China-centred supply chain strategy, following months of Covid-19 disruption that led to it reporting its first decline in quarterly revenues in three and a half years earlier this month.

Apple is building up nascent operations in India in an overdue diversification strategy, following the blueprint it set in China two decades ago, with engineers and designers often spending weeks or months at a time in factories to oversee manufacturing.

While Apple has been producing lower-end iPhones in India since 2017, last September was significant with Indian suppliers building flagship models within weeks of their launch in China, where virtually all iPhones and other Apple hardware are made.

But its experience in recent months has demonstrated the scale of the work to be done in the country.

At a casings factory in Hosur run by Indian conglomerate Tata, one of Apple’s suppliers, just about one out of every two components coming off the production line is in good enough shape to eventually be sent to Foxconn, Apple’s assembly partner for building iPhones, according to a person familiar with the matter.

This 50 per cent “yield” fares badly compared with Apple’s goal for zero defects. Two people that have worked in Apple’s offshore operations said the factory is on a plan towards improving proficiency but the road ahead is long.

Jue Wang, consultant at Bain, said Apple is at the start of its expansion into India. “We’re not talking the same scale of the Zhengzhou factory” — a factory hub in China known as “iPhone City” that employs some 300,000 workers — “and everybody acknowledges there will be different efficiency, but it is happening”, she said.

Apple’s manufacturing shift to India hits stumbling blocks

The iPhone maker is under pressure to unwind its China-orientated supply chain strategy following Covid disruption

www.ft.com

I see India producing 10-20% of Apple's iPhones in a few years. It will be interesting how much of the ecosystem moves out of China. The more ruckus China creates the more the losses will be

 

[kankan326]

I see India producing 10-20% of Apple's iPhones in a few years. It will be interesting how much of the ecosystem moves out of China. The more ruckus China creates the more the losses will be

But 1/4 of Apple phones are sold in China.

 

[nahtanbob]

But 1/4 of Apple phones are sold in China.

75% are not sold in China

 

[kankan326]

75% are not sold in China

Let's wait for the day when Apple loses 1/4 sale and meantime faces production cost rise.

 

[Paul2]

Foxconn to set up manufacturing unit in Telangana, ‘to create 1 lakh jobs’​

The Telangana government and Hon Hai Technology Group (Foxconn) Thursday joined hands to set up the multinational Taiwanese electronics company’s manufacturing unit in the state. A note from the chief minister’s office said the Taiwanese electronics manufacturer will set up its plant paving way for the creation of one lakh jobs over the next 10 years.

“It is one of the largest investments in the electronics sector in the country. It is very rare that lakhs of people are directly employed by a single company,” it said.

https://twitter.com/x/status/1631475436114030592

Foxconn chairman Young Liu, at the launch of T-Works, said “I am very impressed. On our way to the hotel, I said to myself is this India? And when I saw T-Works, how this happened in such a short period, It made me realise Telangana’s speed is so fast.”

Further, “speed is the essence of the hi-tech industry. Speed is very crucial and you can do almost everything in the hi-tech world. Telangana’s speed gave me confidence that by working with Telangana we are very likely to double the revenue of Foxconn. With Telangana’s speed it is very very possible in four years,” the Foxconn chairman said, adding that Foxconn would donate to T-Works an SMT (Surface Mount Technology) assembly line, used for assembling high-end electronics circuit boards.

T-Works, I heard of them few times.

In the end it was not Andhra, TN, or Gujarat.

I guess they are already regretting setting up in Tamil Nadu.

When I was leaving, while they were rushing to finish new buildings where they will be doing final assembly for Iphones, but it was already clear that Apple was about to roll back their India commitment. Some buildings were left empty because planned assembly lines were cancelled.

Apple seemingly really wanted to do rush production "anywhere outside of China" for upcoming model, but it had no follow up after. They had bad sales anyways, thus I guess it's no longer warranting this panic project.

 

[INDIAPOSITIVE]

15
SOCIAL BUZZ


Apple and Foxconn are massively expanding operations in India. Here are their plans so farSource: Shutterstock

Apple and Foxconn are massively expanding operations in India.​

Tech Wire Asia

Tech Wire Asia is an independent tech news website that covers enterprise and technology in Asia

techwireasia.com

https://twitter.com/x/status/1632976355804553217

 

[Cheepek]

So many stumbling blocks fufufu

India to cross $10 billion worth mobile exports in FY22-23, Apple leads at 50%

Buoyed by attractive government incentives towards local manufacturing, India is all set to reach a remarkable $10 billion (over Rs 82,000 crore) worth smartphone exports in the fiscal year ending March 31, industry data showed on Wednesday.

www.businessinsider.in

 

[nahtanbob]

Let's wait for the day when Apple loses 1/4 sale and meantime faces production cost rise.

Apple employs close to a million in China for manufacturing

 

[kankan326]

Apple employs close to a million in China for manufacturing

You think 1 million is a big number in China? Last year China's population reduced 0.85 million

 

[Bilal9]

You got 10-15 years max, by 2040 when India will over takes China.

Bhai - overtake Bangladesh first.

15
SOCIAL BUZZ


Apple and Foxconn are massively expanding operations in India. Here are their plans so farSource: Shutterstock

Apple and Foxconn are massively expanding operations in India.​

Tech Wire Asia

Tech Wire Asia is an independent tech news website that covers enterprise and technology in Asia

techwireasia.com

https://twitter.com/x/status/1632976355804553217

That's all I hear from Bhakts about overseas investments propaganda in India.

"Planning to........"

"Soon to sign agreement....."

"MOU signed......"

"About to massively expand......"

"One lakh new jobs in the offing....."

"At the cusp of revolutionary hundred million investments......."

Then there is the massive sound of air escaping a balloon.....

These Godi media propaganda can win votes for Mr. Modi - that is about all.

 

[Bilal9]

T-Works, I heard of them few times.

In the end it was not Andhra, TN, or Gujarat.

I guess they are already regretting setting up in Tamil Nadu.

When I was leaving, while they were rushing to finish new buildings where they will be doing final assembly for Iphones, but it was already clear that Apple was about to roll back their India commitment. Some buildings were left empty because planned assembly lines were cancelled.

Apple seemingly really wanted to do rush production "anywhere outside of China" for upcoming model, but it had no follow up after. They had bad sales anyways, thus I guess it's no longer warranting this panic project.

Figures - I heard the same thing from Apple manufacturing insiders I know.

 

[nahtanbob]

You think 1 million is a big number in China? Last year China's population reduced 0.85 million

Even for a country as large as China losing 1 million jobs is a big deal

 

[kankan326]

Even for a country as large as China losing 1 million jobs is a big deal

1/4 Apple phones are sold in China. So China will lose 0.75 million jobs if Apple leaves China.