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Old September 18th, 2019, 09:04 PM   #61
karkal
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CIC | The Making of Electronics in India An All-Hands Approach | 14th Sep 2019

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Old September 20th, 2019, 07:37 AM   #62
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Apple flexes India muscle with locally sourced battery packs

Quote:
Apple has begun sourcing battery packs from US contract manufacturer
Flex’s India plant for its locally made iPhones, said a person familiar with the matter.
The move is a step-up for the Cupertino-based company in building a parts ecosystem in
India, where it has so far struggled to have a wide presence. “Flex is making battery packs for Apple... supplies have begun for iPhones to be sold in India, and for exports,” a senior industry executive who is aware of its plans said.


Apple did not respond to an email seeking comment.
The development also comes at a time when the Apple has, according to media reports,
asked suppliers to shift 15-30% of their production from China to other countries amid an escalating trade war with the US.

Apple sources chargers from Salcomp, the Finnish company which is the largest player
globally and which has made India a huge base over the past few years.

Chinese companies such as CCL Design, Yuto Electronics and Sunwoda Electronics supply packaging material and printing technology to the phone maker, industry insiders said. The companies have been named in Apple’s supplier list.

With Flex coming on board, the Macbook manufacturer has increased its supplier base in India to six, including large contract manufacturers, Taiwan’s Foxconn and China’s Wistron.

‘Step in Right Direction’

Foxconn and Wistron assemble iPhones in the country from separate plants in Chennai and Bengaluru, respectively.
Flex declined to comment. Salcomp, CCL Design and Yuto Electronics did not respond to ET’s queries as of press time, while Sunwoda Electronics could not be reached for comment.

“Apple’s India specific moves, including ramping up component production and manufacturing iPhones are part of its move to make India a prominent hub, and as a result of the ongoing trade war with China,” said Prabhu Ram, head of intelligence at Cybermedia Research.

Apple’s India journey, though, has been bumpy so far, with its market share currently hovering around 1% in volume terms and 3% by value, mainly due to a lack of demand for its historically expensive phones in a pricesensitive market flooded with affordable highspecification devices of Chinese players such as Xiaomi and OnePlus.

The company, however, appears to have re-calibrated its plans and is focusing on increasing revenue and profits from its premium devices — and not volume market share through sub-Rs 20,000 devices — besides new services, backed by a move to open its iconic super stores, and expanding local production capability of even high-end models and exports out of India, analysts said.

Apple’s plan to increase component sourcing from within India is a step in “the right direction” as it will increase local sourcing levels for the company, but battery packs contribute little to the value addition in iPhones since the component contributes to just about 1% of value of making the device, said Neil Shah, research director at the Hong Kong-based Counterpoint Research.

“The real value addition will take place when the assembly of printed circuit boards (PCBA) begins in India,” Shah added.
PCBA makes up for more than 50% of the production cost of a smartphone, and several players including Samsung, Xiaomi, Oppo, Vivo and Lava operating in India have already started assembling the component locally over the past few years.


With increased local sourcing, Apple may be able to meet requirements for setting up its retail stores under the Single Brand Retail Trade (SBRT) route, which was further eased last month.

According to the new rules, all procurements made from India by the SBRT entity for that single brand shall be counted towards local sourcing, irrespective of whether the goods procured are sold in India or exported
https://economictimes.indiatimes.com...w/71193916.cms
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Old September 20th, 2019, 07:58 AM   #63
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Apple Adds Now-Discontinued iPhone 7 Models to Clearance Site

What wistron(china) is assembling in India is all discontinued iphone models.
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Old September 26th, 2019, 03:23 AM   #64
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There may be more Chennai-made, cheaper iPhones soon, here's how

Apple is reportedly expanding its operations further, with an investment of USD 1 Billion for manufacturing in India, according to a report.

Quote:
TOI’s report also states that Apple maybe trying to change this status quo and take away shares from leaders like Xiaomi and Samsung, by lowering its own prices

Technology giant Apple Inc. is reportedly expanding its operations further, with an investment of USD 1 Billion for manufacturing in India, according to a report in the Times of India (TOI).

Citing official sources, the Cupertino-based company, its suppliers and Taiwanese partner Foxconn are sharing this investment among themselves too, the newspaper reported.

Its new investment shall go into manufacturing from Foxconn’s factory near Chennai, the report elaborated. Partnering with Foxconn there, instead of its earlier partner Wistron with whom it set up its Bangalore manufacturing unit, it shall be trying to fulfill the government’s 30 per cent local sourcing requirement as well.


In the report the paper's source also said “testing is under way” for the products that have been made in India, and added that “Apple is also seeking clarity” on export incentives that the government currently offers.

Indian officials have been for long, wooing companies like Apple to further set base in India.Earlier this month, India’s Law and IT Minister Ravi Shankar Prasad met with leaders of the electronics industry. The Indian government had reportedly exhorted Apple to expand manufacturing base in India and use the country as an export hub, as it promised to line up fresh incentives and sops to galvanise electronics as well as the phone industry in the coming 2-3 months.

Manufacturing more in India, and fulfilling the Indian government’s local sourcing requirement would also let Apple open its local stores in India as well as sell directly online. Currently, the company depends on third party retailers and e-commerce websites for sales. Last month, plans to open up a brick-and-mortar Apple Store in Mumbai by 2020 were revealed as well.

India is the second largest market in the world for smartphones. However, Apple’s iPhone make up roughly 2 per cent of the market share. TOI’s report also states that Apple maybe trying to change this status quo and take away shares from leaders like Xiaomi and Samsung, by lowering its own prices.
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Old September 26th, 2019, 06:41 AM   #65
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Has Foxconn completely taken over the erstwhile Nokia plant ? Or will this investment be in their current (much smaller ) facility ?
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Old September 27th, 2019, 07:22 PM   #66
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Sansui plans to make India a production hub

https://economictimes.indiatimes.com...w/71318781.cms
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Old September 29th, 2019, 06:03 PM   #67
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OnePlus begins exporting ‘Made In India’ smartphones worldwide

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Smartphone manufacturer OnePlus has announced that it has started export of Indian manufactured handsets to foreign markets including North America.

Looking to hedge its risks considering the recent US-China trade disputes, the Chinese company is looking to expand its manufacturing in India. It has set up additional assembly lines for its new flagship One Plus 7 pro smartphones which will be exported to western markets.

The announcement comes days after Finance Minister Nirmala Sitharaman announced a bonanza of tax cuts for corporates with effective rates going down from 30% to 22%. To push the ‘Make In India’ initiative, the tax rates for new manufacturing companies will be even lower at 15%.

The move has caught the attention of several multinational manufacturing companies who are evaluating setting up operations in India.

OnePlus has been focussing on the Indian market, and as per co-founder Carl Pie, it is considering making the country its manufacturing hub after evaluating the available manufacturing quality at sustainable costs.

The Shenzen based company currently gets most of its manufacturing operations done in China through its parent entity BBK electronics. Notably, BBK owns other smartphone brands such as Realme, Oppo, Vivo apart from OnePlus.

While Vivo and Oppo have been battling with another Chinese giant Xiaomi, OnePlus has cemented itself as the leading premium smartphone in India.

It has captured the market share of Apple’s iPhone and Samsung’s Galaxy range of products by offering high-quality hardware with near-stock Android experience.

Earlier this month, OnePlus launched its India exclusive OnePlus TV taking on its arch-rival Xiaomi which has its line of smart televisions in India. Further, OnePlus announced that it will invest up to Rs 1,000 crores in India in the next three years including plans to set up an R&D facility in Hyderabad.

Apart from the manufacturing facility, the company has implemented a different approach with its supply chain in India. While most of its sales worldwide are generated through purely online sales, it has set up an India-specific offline retail channel to boost sales in tier II and tier III cities.

On the lines of Apple, the company has also been working towards monetizing the premium handset user base via services.

During the launch of its latest offering – OnePlus 7T, the company also announced launching OnePlus Pay and OnePlus Cloud. OnePlus Pay will be a wallet on the similar lines on Samsung Pay and will facilitate contactless transaction directly from the smartphone.
https://entrackr.com/2019/09/oneplus...nes-worldwide/
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Old October 16th, 2019, 10:15 PM   #68
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Chinese firm to invest ₹700 cr. in mobile components facility

BYD India’s executive director meets Chief Minister

Quote:
China’s BYD (Build Your Dreams) Group’s Indian arm is likely to invest ₹700 crore in a mobile components facility in Sriperumbudur, according to sources.
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Old October 17th, 2019, 12:56 AM   #69
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Huawei, Ericsson, and Nokia are shifting to India for 5G manufacturing

Quote:
Telecommunications networking suppliers Ericsson and Huawei plan to manufacture 5G radios in India, producing enough equipment to meet demand in India and export to other countries, the Economic Times reported this week. Nokia also plans to increase its existing production of 5G radios in India, from which it already exported over 20,000 5G radios to the US and Europe.

Networking companies are gravitating toward India as its government prepares to auction 5G spectrum by the end of 2020, paving the way for a massive network buildout. There will be 88 million 5G connections in India by 2025, according to a GSMA Intelligence report. And it could sustain explosive growth well after that, as the projection assumes 5G will only constitute 7% of India's installed base of over 1.3 billion connected devices in 2025.

Telecommunications suppliers have increasingly moved production to India, responding to import tariffs. The Indian government raised duties on communications and technology products from 15% to 20% in 2018. This created further incentive for major suppliers to shift manufacturing to the country. For instance, Samsung opened a smartphone factory in India in 2018, allocating 49.2 billion rupees ($688 million) to expand operations over three years, according to Reuters.

The South Korean company started assembling phones in India in 2007, but the influx of capital was intended to increase Indian production for exports, rather than just meeting domestic demand. Similarly, Foxconn, a major Apple supplier, promised to mass-produce iPhones in India by the end of 2019. Apple will export these devices to Europe, just as Nokia did with its India-produced 5G radios.

To gain access to consumer populations in emerging markets, telecommunications companies will need to increasingly rely on regionalized supply chains. Following China's template, India enacted policies that leverage market access as a bargaining chip to attract domestic manufacturing investments from multinational corporations. Other countries with developing economies and large consumer bases — including Indonesia, Thailand, Malaysia, and the Philippines — have implemented similar strategies.

This creates attractive investment opportunities for global telecommunications companies, but they should heed an important lesson from manufacturing in China: Overreliance on manufacturing in any particular region can have major fallout. In response to US-China trade tensions, Nokia and Ericsson had to scramble to set up new supply chains outside of China. By moving production closer to a handful of regions with significant demand, telecommunications companies can retain access to major markets, while also hedging against geopolitical risk.
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Old October 17th, 2019, 03:00 AM   #70
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Hon Hai reportedly starts assembling iPhone XR in India

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Taipei, Oct. 16 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. has started to assemble the iPhone XR in India at a time when Apple plans to make the South Asian country one of its global production hubs, according to Indian news outlet ET Telecom.com.

A report dated Tuesday cited anonymous sources close to the matter as saying that Hon Hai, known as Foxconn in the global market, has just begun mass assembly of the iPhone XR, a more affordable model that Apple unveiled in September 2018, at its production complex near Chennai after several weeks of trials.

The production of the iPhone XR is paving the way for Apple to make the newest iPhones -- the iPhone 11 series -- which hit the global market in September, in India, which reflects "a move up the manufacturing value chain in India" by the U.S. consumer electronics giant, the sources said.

Hon Hai was not immediately available for comment on the report.

"Making the iPhone XR involves a higher level of technical skill, the sources said. Apple will export the devices to other markets after having tested the waters with export of the iPhone 6s and 7 models to Europe in the past few months," the report said.

The sources said that although Apple is expected to save about 20 percent in import duty through local manufacturing of the iPhone XR, the production in India is unlikely lead to a drop in iPhone prices, since Apple has not marked down prices on any of its locally made iPhones.

In early September, the Times of India reported that Apple is planning to partner with Hon Hai to invest about US$1 billion in India, a decision that came amid a trade war between China and United States that has driven companies with manufacturing bases in China to look elsewhere.

Many of Hon Hai's suppliers are planning to set up production bases in Chennai, which will form a comprehensive supply chain.

Until 2015, the report said, Apple's contract makers had no assembly plants in India. But as of 2019, three assembly plants have become operational, including the Hon Hai one in Chennai.

Wistron Corp. of Taiwan is assembling iPhones at its plant in Bangalore, so the Hon Hai investment will be an expansion of the iPhone manufacturing lines in India, the report said.

The Wistron factory in India started to roll out iPhone 6s last year and began assembling the iPhone 7 this year. Apple has started to sell both models in the European market, the report added.

On a list of Apple's major suppliers released in March, several Hon Hai subsidiaries were among the top 200, including those in Sao Paulo, Brazil; Fort Worth, Texas; Bac Giang, Vietnam; Tainan, Taiwan; and Tamil Nadu, India, along with its units located in China.
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Last edited by karkal; October 17th, 2019 at 03:06 AM.
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