We can say that despite the Apple market in the India not growing as expected (yet), the relationship between the giant of Cupertino and the country has been consolidating positively for it to soon become a base production site for Ma. Now, that relationship has reached a new milestone, with Apple investing $ 1 billion in manufacturing in the region. The information is from Times of india.
According to the report, the Foxconn be the main beneficiary of Apple's giant investment in the country as the company aims to expand the export potential of iPhones “Made in India” for even more countries, which is in line with a similar movement that began last July, when iPhones 6s and 7 made in India began to be exported and sold in European countries.
The reasons for Apple's increased investment in India could not be more obvious: trade war between the United States and China. As we report, Ma's core products are already targeted by the White House's new tariffs, with the possibility that they will increase further by the end of the year.
Following the opposite direction of China, the Indian government announced a few months ago the relaxation of its laws for the establishment of foreign companies in the country; previously, any supplier from another country wishing to open new doors in India would have to manufacture at least 30% of its products locally. This, however, changed in July this year, when it was announced that companies could invest at least $ 200 million in FDI to settle in the country, among other benefits.
On the other hand, it is not known whether all this investment contributes, in fact, to the increase of Ma's sales in the country, after all, the problem there is the high price of iGadgets compared to products from other manufacturers. However, investors say Apple is considering long-term change and treating India "more as a production center than a significant market."
via Cult of Mac | image: fotosunny / Shutterstock