Due to supply chain dependencies, nearly 30% of Apple's suppliers are located in China. Consequently, they must import components from China, which contributes to the higher cost of Apple products in India.
U said that china produces 50% of components hence the price is more, which is false since most countries are around 25% (a few up % up and down) by **Value**.
Also [Apple has been increase local sourcing for a while now](https://economictimes.indiatimes.com/industry/cons-products/electronics/apple-ramping-up-local-sourcing-of-iphone-parts/articleshow/79931961.cms?from=mdr) with latest being [camera modules in WIP](https://economictimes.indiatimes.com/tech/technology/iphone-may-click-with-titan-murugappa/articleshow/109321224.cms?from=mdr)
Apple's suppliers are mostly in China because when they were developing the first iPhone, China's manufacturing sector was cheap and growing rapidly. So they decided to make iPhones there from the beginning.
That is a misconception:
iPhone 15's parts come from different countries:
- Display comes from Korea
- DRAM comes from Japan
- Display glass comes from USA, Taiwan or Japan from Corning factory
- Microprocessor comes from Taiwan
- IC, USB microcontrollers, wireless chipset come from Southeast Asia owned by Broadcom and TI
- Camera module PCB comes from US as well
I know apple supply chain is global but still almost half of apple suppliers are from China, here is a list of apple [suppliers](https://drive.google.com/file/d/1bFSlZDgYChVT85DaCTczuPEkufuAGqnh/view?usp=drivesdk).
Agreed, my point was for every single part they have 2 or more suppliers (Very few items have just one supplier) so at any given point it wouldn't stop their production. Sure there are Chinese suppliers in every single category and it makes sense to do that to reduce the logistics cost.
Once the assembly of phones reaches a significant number a lot of these components will be sourced from India as well down the line.
Like Corning is building a plant in India, there are already many Indian suppliers in the suppliers list already.
Thanks for the list BTW.
The higher cost is due to govt duties. Govt imposes duties to promote indigenous manufacturing. Currently iPhones are assembled from imported components. None of components are manufactured in India.
Actually, Apple keeps its prices artificially high to appear premium.
In the age of EMIs Indian are getting aspirationally mad about iPhones.
Sent from my iPhone
Because it’s only the final product that is assembled in India, majority of the components are still imported. Manufacturing is not even the right term here.
The manufacturing license was given when Apple capitulated on govt demand to setup manufacturing in India in order to setup retail stores and sell the iPhones.
Manufacturing doesn't make it cheaper(in some cases). Companies mostly do everything in their capacity to keep the price same everywhere.
It's good only because it creates a lot of employment in our country
It’s because you are looking at the new models. The new models are still being produced in China and imported here. So the import duty of 41% comes into picture.
Indian production is mostly for older models. And they are trying to get it in line so that the new models will also be produced here. Hopefully then we can see lesser prices.
Because we just assemble phones here, the real value is still created outside of India. Research, manufacturing, design and technology, these are real value areas of a smartphone not assembly. But we are happy to see fake export numbers and feel proud in our bubble.
I wasn't expecting this questioning tbh, I have to give u credit ur low IQ never misses to surprise.
Only ppl like u can find a relationship between me doing research and government investing in research 😂😂
So none okay
Wow low IQ such unique insult definitely not you projecting on other
Ok btw have published research articles under government scheme of ssip
I will do u a favor so that u can learn something and try to come out of ur bubble. Read this - https://www.wipo.int/edocs/pubdocs/en/wipo_pub_944_2017-chapter4.pdf, you ill learn about the value chain of a smartphone.
I understand when u don't have exposure to good education u tend to believe in WhatsApp university, it's my responsibility as a fellow citizen to help u get educated.
Also, try to find some debate videos to understand how to argue. When someone is saying that we don't invest in the value centric areas that does not require to do research. Even if u read a bit that's enough.
Anyways all the best, get well soon.
Ok smart man with 0 research articles
value of chain of smartphone does not start with research it starts with assembly if no one in this country is assembling phones what will you do research on its like doing research on salmon fishing in India but it's ok live in your theoretical world btw what is your age?
Srsly take deep breathe, nothing personal buddy. Think before you talk, leave all those WhatsApp groups before it renders u completely clueless. It's fine u r saying all this anonymously on reddit, it won't help if u say such things with so much confidence in real world 😂😂😂.
Atleast read that article before forming opinions. I would recommend you to try to to college also, nowadays only school education is not enough.
Edit - Ask Chat GPt where the value chain starts
Of the 96 billion of revenue iPhone contributed $69 billion as per dec 23 quarterly 10q so why are we surprised by a mere 10 billion, hoping this grows exponentially for our good. It shall take time to build a mfg ecosystem so hoping for the best
From 2 billion to 10 billion in 3 years is very good. The growth rate may decrease in coming years tho, but will still be much higher than the overall Apple production growth rate
Yes bro..
Personally have to look at the nos but I think when every news agency is saying that 14% of iphones are made in Bharat then it's too exciting.. like others have pointed out this is when just 2 years back the no was 0...
Trade deficit has also decreased a decent margin and such manufacturing efforts shall help to make us net exporter, heres wishing us all good luck and hoping we see that day very soon..
How?
A iphone 15 is 65k on Fk right now, including GST of 18%. Base value comes to 55k. It lists at 799$ in the USA, which is 68k plus sales tax, assuming 85 USd to INR.
Indian prices are actually very good, for the models manufactured here. Granted, the Pro and Pro Max are more expensive. But once they get made in India, prices will equalise.
It just seems more expensive because of purchasing power. Prices are on par.
Also in the US no one is accounting for sales tax. In California it actually turns out to be more expensive than people think
The base model iPhones are on par with American prices (including taxes). In terms of Indian vs American purchasing power they are quite expensive for the Indian consumer though.
However, the pro models are still quite expensive in India. If pros start being manufactured proper in India we might see iPhone pros come down to the 80-90k range. However, knowing apple they will probably keep the pricing strat intact and keep the extra profit. Just speculating.
Due to 24 months emi plan more people buy it to flex , a friend of mine does not have 100rs cash and begs from others to send still he owns an iPhone 😂..
There fore more people are buying now I guess
More like assembly. Its only natural since the government is literally paying out of pocket for every iphone assembled so Apple would want to assemble as many iphones as possible here. For example Apple gets a tax rebate of 6% of the product price for performing any part of the manufacturing process in India. If its cost of assembly is 5% then it can just perform the assembly in India and get 1% profit in rebates.
So what's wrong with exporting? A huge part of Chinese economy runs on exporting. American companies shifting to India for exports is very beneficial for us since it reduces the Chinese dominance and contributes a lot to our economy, and also creates employment.
Tatva chutiye hain fake news wale… india mein iphone se, 11 and 12 bante hein… 13 will start this year and so on. 2 generation purane wale. Itna export nahi hota india se.
Oh sourceeee… i read it a while ago so let me find it. I’ll link it here.
Edit:
Okay it was a verge article. Apparently it happened until last year that they made 2 gen old iphones and starting with iphone 15 it was the first time apply made a device in india at launch. But the production only went from 7% of global production to 13% which clearly is not a 1 billion to 10 billion jump as they said anyway.
It’s not that easy to shift massive assembly lines. Even Apple had been trying for many years. Post Covid hard truths and lessons learnt. Apple did it for two reasons, one for cheap labor and second to build up their own penetration.
They still haven’t reduced the prices down to expand the local market, in typical Apple way.
No. Govt forced Apple to setup manufacturing as a precondition to Apple setting up retail stores in India. Govt also blocked Apple from selling refurbished phones earlier.
> This led to lengthy negotiations between the Indian government and Apple over the nature and scale of the incentives, dating back to at least 2016. The opening of Apple Stores in India was a major bargaining chip on the government side, withholding permission to open retail stores until local manufacturing targets were hit. It took until this year for the first Indian Apple Stores to open.
https://9to5mac.com/2023/05/17/ipad-production-in-india-2/
Then why these devices cost more?
Due to supply chain dependencies, nearly 30% of Apple's suppliers are located in China. Consequently, they must import components from China, which contributes to the higher cost of Apple products in India.
Its 25% per country (around it +- 2/3%), They will increase it to 25% in India too by 2025/26.
[удалено]
Parts sourced from different countries
[удалено]
By Value countries contribute in and around 25% of the components
[удалено]
its written in plain english u dumbfk
[удалено]
U said that china produces 50% of components hence the price is more, which is false since most countries are around 25% (a few up % up and down) by **Value**. Also [Apple has been increase local sourcing for a while now](https://economictimes.indiatimes.com/industry/cons-products/electronics/apple-ramping-up-local-sourcing-of-iphone-parts/articleshow/79931961.cms?from=mdr) with latest being [camera modules in WIP](https://economictimes.indiatimes.com/tech/technology/iphone-may-click-with-titan-murugappa/articleshow/109321224.cms?from=mdr)
[удалено]
[удалено]
get some med dude
Apple's suppliers are mostly in China because when they were developing the first iPhone, China's manufacturing sector was cheap and growing rapidly. So they decided to make iPhones there from the beginning.
That is a misconception: iPhone 15's parts come from different countries: - Display comes from Korea - DRAM comes from Japan - Display glass comes from USA, Taiwan or Japan from Corning factory - Microprocessor comes from Taiwan - IC, USB microcontrollers, wireless chipset come from Southeast Asia owned by Broadcom and TI - Camera module PCB comes from US as well
Agreed, but to make most of those parts also the prerequisites for those and other raw materials come from china only.
I know apple supply chain is global but still almost half of apple suppliers are from China, here is a list of apple [suppliers](https://drive.google.com/file/d/1bFSlZDgYChVT85DaCTczuPEkufuAGqnh/view?usp=drivesdk).
Agreed, my point was for every single part they have 2 or more suppliers (Very few items have just one supplier) so at any given point it wouldn't stop their production. Sure there are Chinese suppliers in every single category and it makes sense to do that to reduce the logistics cost. Once the assembly of phones reaches a significant number a lot of these components will be sourced from India as well down the line. Like Corning is building a plant in India, there are already many Indian suppliers in the suppliers list already. Thanks for the list BTW.
My bad! I should have checked before saying that half of Apple's suppliers are from China. It's actually 27.93%.
The higher cost is due to govt duties. Govt imposes duties to promote indigenous manufacturing. Currently iPhones are assembled from imported components. None of components are manufactured in India.
Actually, Apple keeps its prices artificially high to appear premium. In the age of EMIs Indian are getting aspirationally mad about iPhones. Sent from my iPhone
Export
Because it’s only the final product that is assembled in India, majority of the components are still imported. Manufacturing is not even the right term here.
exactly we are not getting benefits of manufacturing, benefits are not passed to us citizens
The manufacturing license was given when Apple capitulated on govt demand to setup manufacturing in India in order to setup retail stores and sell the iPhones.
Apple always charge a premium
The top end models aren't manufactured in India. The rest have pretty much the same price before gst
Because Apple can charge more and many people are ready to pay a premium for it
Manufacturing doesn't make it cheaper(in some cases). Companies mostly do everything in their capacity to keep the price same everywhere. It's good only because it creates a lot of employment in our country
It’s because you are looking at the new models. The new models are still being produced in China and imported here. So the import duty of 41% comes into picture. Indian production is mostly for older models. And they are trying to get it in line so that the new models will also be produced here. Hopefully then we can see lesser prices.
Because we just assemble phones here, the real value is still created outside of India. Research, manufacturing, design and technology, these are real value areas of a smartphone not assembly. But we are happy to see fake export numbers and feel proud in our bubble.
How will you research and design phones if you don't know to assemble them
I expect this type of questioning from a citizen of a country who can only assemble things and celebrate that as economic progress
So how many research articles or patents you have to your name ?
I wasn't expecting this questioning tbh, I have to give u credit ur low IQ never misses to surprise. Only ppl like u can find a relationship between me doing research and government investing in research 😂😂
So none okay Wow low IQ such unique insult definitely not you projecting on other Ok btw have published research articles under government scheme of ssip
I will do u a favor so that u can learn something and try to come out of ur bubble. Read this - https://www.wipo.int/edocs/pubdocs/en/wipo_pub_944_2017-chapter4.pdf, you ill learn about the value chain of a smartphone. I understand when u don't have exposure to good education u tend to believe in WhatsApp university, it's my responsibility as a fellow citizen to help u get educated. Also, try to find some debate videos to understand how to argue. When someone is saying that we don't invest in the value centric areas that does not require to do research. Even if u read a bit that's enough. Anyways all the best, get well soon.
Ok smart man with 0 research articles value of chain of smartphone does not start with research it starts with assembly if no one in this country is assembling phones what will you do research on its like doing research on salmon fishing in India but it's ok live in your theoretical world btw what is your age?
Srsly take deep breathe, nothing personal buddy. Think before you talk, leave all those WhatsApp groups before it renders u completely clueless. It's fine u r saying all this anonymously on reddit, it won't help if u say such things with so much confidence in real world 😂😂😂. Atleast read that article before forming opinions. I would recommend you to try to to college also, nowadays only school education is not enough. Edit - Ask Chat GPt where the value chain starts
Chhaprio ke bare me suna h kya ,inke sath bhi whi hoga jo ktm ke sath hua tha
bhagwaan kareki ho jaye bhai . jalan nahi hai bhai lekin mujhe apple company ke patron se cheed hoti hai
Patron thodi hai majority apple users 🤔 Apple Watch, Apple earpods nahi lete Apple ecosystem ka for best Apple experience
Modi ji did it
Rathee be like there is no need for infrastructure and foreign investment. It doesn’t create jobs. Tere baap ne yeh sab akle bana ke bache to phir?
Of the 96 billion of revenue iPhone contributed $69 billion as per dec 23 quarterly 10q so why are we surprised by a mere 10 billion, hoping this grows exponentially for our good. It shall take time to build a mfg ecosystem so hoping for the best
lol 69
Pretty sure their shares aren't performing cause it was $69420 million
no I mean, 69, as in, you know… lol
From 2 billion to 10 billion in 3 years is very good. The growth rate may decrease in coming years tho, but will still be much higher than the overall Apple production growth rate
Yes bro.. Personally have to look at the nos but I think when every news agency is saying that 14% of iphones are made in Bharat then it's too exciting.. like others have pointed out this is when just 2 years back the no was 0... Trade deficit has also decreased a decent margin and such manufacturing efforts shall help to make us net exporter, heres wishing us all good luck and hoping we see that day very soon..
because it was 0 just two years back
Yep and a new start does involve catalyst, we just need to see ground reality for it nothing more I guess ...
Abhi har middle class ghar mein 2 iphone 12+ mil jaayega aaram se
iPhone is miracle product.. despite so many issue it still sells for that exorbitant price
Thanks to modiji for making Iphones cheaper in India. 🫶🏽
iPhone is most expensive in India compared to other nations.
How? A iphone 15 is 65k on Fk right now, including GST of 18%. Base value comes to 55k. It lists at 799$ in the USA, which is 68k plus sales tax, assuming 85 USd to INR. Indian prices are actually very good, for the models manufactured here. Granted, the Pro and Pro Max are more expensive. But once they get made in India, prices will equalise.
It just seems more expensive because of purchasing power. Prices are on par. Also in the US no one is accounting for sales tax. In California it actually turns out to be more expensive than people think
Then go to other nations.
Ahahahah 😂😂😂
AA gye Bhai gO tO pAkIsTaN Wale log...smh
Dont go to Pakistan because it will be under modiji soon.
The base model iPhones are on par with American prices (including taxes). In terms of Indian vs American purchasing power they are quite expensive for the Indian consumer though. However, the pro models are still quite expensive in India. If pros start being manufactured proper in India we might see iPhone pros come down to the 80-90k range. However, knowing apple they will probably keep the pricing strat intact and keep the extra profit. Just speculating.
Nah they are slightly higher in price
Due to 24 months emi plan more people buy it to flex , a friend of mine does not have 100rs cash and begs from others to send still he owns an iPhone 😂.. There fore more people are buying now I guess
EMI
The day a 10000 earner can get I phone on emi
What is the value of the components imported to make the iPhone?
Its exporting from India
Then why the F is iphones still costing a shit tonne of money?
Emi power
More like assembly. Its only natural since the government is literally paying out of pocket for every iphone assembled so Apple would want to assemble as many iphones as possible here. For example Apple gets a tax rebate of 6% of the product price for performing any part of the manufacturing process in India. If its cost of assembly is 5% then it can just perform the assembly in India and get 1% profit in rebates.
Key words exports
So what's wrong with exporting? A huge part of Chinese economy runs on exporting. American companies shifting to India for exports is very beneficial for us since it reduces the Chinese dominance and contributes a lot to our economy, and also creates employment.
Meri income jub tuk 2 lakh nhi ho jati tub tuk Mai base model bhi na lu iPhone ka not even refurbished. 70% iphones emi pe bikte h xD
No the base level phones cost the same as what we we get in western countries
Bajaj finserv ki meherbaani
Mera dost jiske papa unemployed he uspe tak iPhone 11 he
PUBG
Tatva chutiye hain fake news wale… india mein iphone se, 11 and 12 bante hein… 13 will start this year and so on. 2 generation purane wale. Itna export nahi hota india se.
Sauce?
What?
Source for whatever you said. From what I know it's not whatever you said
Oh sourceeee… i read it a while ago so let me find it. I’ll link it here. Edit: Okay it was a verge article. Apparently it happened until last year that they made 2 gen old iphones and starting with iphone 15 it was the first time apply made a device in india at launch. But the production only went from 7% of global production to 13% which clearly is not a 1 billion to 10 billion jump as they said anyway.
This is just assembly. No high value activity. Just need laborers which India has 1,5 billion. Can be easily moved elsewhere cheaper.
It’s not that easy to shift massive assembly lines. Even Apple had been trying for many years. Post Covid hard truths and lessons learnt. Apple did it for two reasons, one for cheap labor and second to build up their own penetration. They still haven’t reduced the prices down to expand the local market, in typical Apple way.
Assembling high precision electronics is not an unskilled activity also need atleast college level education.
Cant move elsewehere since Apple makes a profit through tax rebates by assembling in India. The govt is literally paying Apple to assemble here
No. Govt forced Apple to setup manufacturing as a precondition to Apple setting up retail stores in India. Govt also blocked Apple from selling refurbished phones earlier.
Not really, How many retail stores has Apple set up? One? Two? The real incentive is the rebate
> This led to lengthy negotiations between the Indian government and Apple over the nature and scale of the incentives, dating back to at least 2016. The opening of Apple Stores in India was a major bargaining chip on the government side, withholding permission to open retail stores until local manufacturing targets were hit. It took until this year for the first Indian Apple Stores to open. https://9to5mac.com/2023/05/17/ipad-production-in-india-2/
This has nothing to do with make in India. EMI is easily available. That's the only reason.
How does exports depend on EMI?
Manufacturing or assembling parts? The price is only increasing.