Someone had to make money from the trade war between the United States and China, and the latest reports suggest that it will be Foxconn, who wants to use India for this purpose, which is growing to the next power.
Foxconn believes that this will be the best place to assemble all future iPhones, and the local government confirms the concern in this belief, believing that his country will win something for themselves and eventually become a global electronics production center 1337 directory. Will this work out? It is hard to say, but given that Apple must be ready for a 10-15% tariff imposed by the Donald Trump administration on goods imported from China, it will certainly be looking for a cheaper alternative, which may be India.
Until now, the American giant was looking around in Brazil and Vietnam (following the example of Google, which wants to assemble its Pixel smartphones in the latter country), but everything indicates that India may be a better option. Foxconn has already built two factories there and is waiting for building permits for another two to gradually increase its share in the production of new iPhones. And why India? According to Bloomberg, the matter is simple, there is a lot of very cheap labor there, and we are talking about a level comparable with China.
The Indian government had previously been rather reluctant to cooperate with major manufacturers, but now it has apparently changed its mind and intends to make a solid profit from the war between the US and China. What’s more, the necessary actions have already been taken to adapt local regulations to new conditions and encourage manufacturers to build factories – but it is worth remembering that a lot has to happen on the spot, because even now road and rail infrastructure is not ready for an increased number of producers and implementation of huge supply chains. Either way, the government’s plan is to increase India’s manufacturing value from $ 25 billion to $ 400 billion by 2024.
According to Anshul Gupta, a researcher from Gartner India: – Everything is starting to shape. India can increase its production capacity and help the world become independent of China. It took China 30 years to reach its current position, but now many large concerns, such as Amazon, Apple, Google or Dell have expressed interest in India, so it can go much faster.
Unfortunately, there are also less pleasant sides of the whole process, namely the current Foxconn factories employ mainly women who get $ 4 a day for assembling such equipment as iPhone X, XS or alternatives from Xiaomi. For many women, this is an opportunity to take up their first job away from home, for which they are paid and a chance to live above the poverty line, but it can not be hidden that $ 130 a month is not very impressive, and Foxconn has a lot of employment controversy minors and poor working conditions, so it would be good if someone had their finger on the pulse.