iPhone move to India: China makes it difficult for Apple
First they said, “military technology”, now customs problems: Apple's manufacturers struggle to move machines from China to India. Beijing is obstructing this.
Production at Foxconn, here in China.
(Image: dpa, Xuan Hui)
Apple's attempts to relocate as much of its iPhone production as possible to India continue to meet with resistance from the People's Republic of China. As the IT news service The Information reports, Apple's manufacturers are therefore trying to be “creative”. For example, an unspecified Apple partner registered its own company in Southeast Asia to acquire the necessary production machinery. It then ended up directly in a Foxconn factory in India, where iPhones are produced. This was apparently to avoid inquiries from the Chinese authorities, who have been trying for months to at least slow down the relocation of production – with the argument that the machines are “military technology”. In some cases, export duties are also to be levied or customs clearance is to be slowed down. The tactic also extends to employees of Apple manufacturers, who are said to have been made more difficult to travel to India or Vietnam.
All US iPhones from India in future?
Apple plans to manufacture up to half of all iPhones in India in the future. The process has been accelerated by the US government's tariff plans, which many companies consider to be erratic. The aim is now to move the entire production of Apple smartphones destined for the US market away from China over the next two years. The project is considered to be extremely difficult, especially when it comes to launching new products.
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Currently, Apple can already manufacture new models in India rapidly, but has never implemented the entire production process including the central preliminary measures. Moreover, assembly in India does not mean that all components will come from the country – Many will continue to be produced in China, which in turn could lead to problems with exports.
Blockade and delays
The hope of the iPhone group is that India will always face fewer tariffs than the People's Republic of China. The establishment of iPhone production in the USA is currently not being seriously considered, even if the US government hopes for this and believes that it can be implemented with automation. However, iPhone production is so complex that it could take many years, and some observers even consider it impossible due to the lack of an upstream supply chain. If the components come from China before final assembly in the US, they could in turn be subject to customs duties. Together with the costs for automation, this could make the iPhone significantly pricier.
Often, the Chinese authorities have delayed or blocked the delivery of iPhone equipment to India without giving a reason, writes The Information. Sources from the iPhone supply chain have reported this. Foxconn, for example, found that approval times for the export of iPhone production equipment from its Chinese factories to India had increased from two weeks to up to four months. In addition, some export applications were rejected without justification.
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