WSJ: Foxconn may make iPhones in India

From “Foxconn Looks Beyond China to India for iPhone Assembly” posted early Tuesday for Wednesday’s Wall Street Journal ($)

Apple’s largest iPhone assembler, Foxconn Technology Group, is considering producing the devices in India, people familiar with the matter said, a move that could reduce Apple’s dependence on China for manufacturing and potentially for sales.

Executives at Foxconn, a contract manufacturer that assembles a large portion of the world’s iPhones in China, are studying whether to include an India project in budget plans, one of the people said. Senior executives, possibly including Chairman Terry Gou, plan to visit India after next month’s Lunar New Year to discuss plans, the people familiar said.

My take: Wait, not Wisconsin? What will the President tweet?

3 Comments

  1. Gregg Thurman said:

    “The chairman of Chinese tech giant Huawei has warned that his company could shift away from Western countries if it continues to face restrictions.”

    This sounds like a threat that Huawei will sell at or below cost (losses subsidized by Chinese government) in developing markets in an attempt to deny western companies revenue from those markets.

    This is the howl of a firm [Chinese government] that is hurting. In Southeast Asia, where China has been forcibly https://www.theepochtimes.com/chinese-leader-tells-army-to-prepare-for-war_2757819.html trying to extend its zone of influence (to the detriment of Vietnam, the Philippines, Taiwan and others) I don’t think dumping will have the effect Huawei [Chinese government] would desire (Southeast Asia is benefitting from a shift in US manufacturing out of China to their respective countries). The Euro zone is just as suspicious of Huawei [Chinese government] as we are. Ergo, as most threats are, this is an empty threat.

    As the rhetoric coming out of Xi Jinping’s government becomes more militant, costing Chinese billionaires a ton of wealth, I think his hold on the leadership of China becomes tenuous, no matter his “lifetime” appointment.

    My Chinese friends here in the US say there is a building resentment to his leadership. They don’t know how deep that resentment is, but if felt on the streets it has to be greater higher up among those more interested in profits than the desires of an extreme nationalist.

    As James Carville, acting as Bill Clinton’s presidential campaign manager, said, “Its the economy Stupid”.

    Opening its doors to western trade has transformed China into a nation of haves, and haves don’t like to give up what they have achieved/got.

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    January 22, 2019

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