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> India and Vietnam have their own challenges. > Vietnam’s manufacturing was growing quickly but was short of workers. The country has just under 100 million p
by akmittal 4y ago
> India and Vietnam have their own challenges.
> Vietnam’s manufacturing was growing quickly but was short of workers. The country has just under 100 million people, less than a 10th of China’s population.
> India has a population nearly the size of China’s but not the same level of governmental coordination. Apple has found it hard to navigate India because each state is run differently and regional governments saddle the company with obligations before letting it build products there.
- brnt 4y agoAs of next year, India will be the most populous country in the world.
- peanuty1 4y agoIndia probably has been for some time now that we know China has been overestimating its population.
- deltree7 4y agoIndia has 5% manufacturing capabilities of China and will be at least 2x expensive and slow. India also has strong labor laws and local politicians still need votes
- mikymoothrowa 4y agoSorry, but how is this capability measured? And why is it being assumed here that labor laws need to be suppressed to make iphone production viable?
- lotsofpulp 4y agoI feel like a rough measure would be to see the proportion of anything that is not clothing that has “Made in India” written on it in one’s home, compared to “Made in China”.
- jsnell 4y agoIt seems fair to assume that actual output and manufacturing capability are closely correlated (there's a limit to how much unused capacity can get built). Here's the manufacturing output by country (data from World Bank): https://data.worldbank.org/indicator/NV.IND.MANF.CD?most_recent_value_desc=true https://data.worldbank.org/indicator/NV.IND.MANF.CD?most_rec... China is at about $5 trillion, India about $450 billion. So it's not 5%, but we are still talking of an order of magnitude.
- mikymoothrowa 4y agoThis is plain circular reasoning. You’re complaining that india doesn’t have the manufacturing capability by pointing to the fact that stuff is not manufactured in India, in a thread that talks about manufacturing moving to India. You realistically don’t have a way to measure capability.
- jsnell 4y agoFirst, I'm not complaining about anything. I do not give a fuck about whether India manufactures stuff or not. But there was a question about a number, I provided an answer for how it could be derived. You're welcome! I disagree with your objection. Actual current output is a great proxy for actual current manufacturing capability, assuming even a tiny bit of rationality. If the two are not linked like you imply - and in fact India already has as much capacity as China - then somebody built 10x more factories than they needed, and lost unimaginable amounts of money doing so. Is that what you're suggesting happened? Now, the claim is not that the factories, supply chains, trained workforce, etc could not eventually scale to the same size in India as in China. But somebody actually needs to do that work. Until it is done, the capability possibly does not in exist.
- mikymoothrowa 4y agoone only needs to look at the cement/steel production vs capacity to understand that they’re not the same.
- akmittal 4y ago> 2x expensive That's not even close. Samsung,MI,Oppo and Vivo make almost all phones for India in India. If it was this expensive they will never make India
- deltree7 4y agoYeah, compare Apple's margins vs all of the margins that you mentioned