You are very right. It is true from the value point of view and for now. There are two other actions at play here 1. When you are buying a new car or a house

You are very right. It is true from the value point of view and for now. There are two other actions at play here 1. When you are buying a new car or a house in the developed world it is usually replacing an existing car or house, perhaps with a marginal increase in efficiency. In the case of India you are adding an asset which adds close to 100% value. This also applies to roads, bridges and factories. 2. The number of units sold has a significant value to the company, that is part of the success behind China. That adds economies of scale as well as a ground to innovate for the rest of the world, which is incidentally mostly price sensitive. An iPhone costs more than Rs. 100K, typical budget Android phones are around 5K that is 20x. The investments that foxconn is making is pretty small, includes equipment moved from China to diversify.