"In fact, foxconn's biggest customer in India should be a Chinese brand, rather than apple, foxconn's expansion plans in India, the real driving force is the Chinese brand."
According to India's economic times reported recently, foxconn's plan to build a factory in India already has been approved, will be get a piece of 1200 acres of land near mumbai, $10 billion investment in building a giant factory, OEM specifically for apple.
Foxconn's earlier said in a statement on India's "big plan", in 2020 before the construction of 10 to 12 factories, bring 1 million jobs to India.
According to Indian media, in mumbai, maharashtra industry minister believes that foxconn's have such action, "mainly because China's labor costs rise.
"I don't think so, India's manufacturing industry in a short period of time also can't replace China, foxconn's expansion is according to the Indian market changes to make tactical action, we see the foxconn also continues to invest in China." India's macroeconomic research institute ORF economists Prashant Kumar, reported to the 21st century economy
Apple's thunder far from Chinese brand bright eye
Foxconn currently about 50% of the accounts receivable from the production of apple products, but because of slowing global demand, apple in the second quarter of 2016 sales fell for the first time, operating income also appears more than a decade of decline for the first time. Foxconn is destined to be affected, in the fourth quarter of 2015, foxconn's profit in the first decline since more than three years.
In this context, apple put their hopes in the Indian market. On May 18, apple CEO has arrived in India, and will meet with Indian prime minister Mr Modi. Previously, apple has also tried to sales of second-hand apple refurbished machines in India.
"In fact, foxconn's biggest customer in India should be a Chinese brand, rather than apple, foxconn's expansion plans in India, the real driving force is the Chinese brand." Prashant Kumar said analysis.
Smartphone sales in 2015, India is about 100 million m, the apple phone because the price is too high, the market share is only 2%. In the Indian market, apple mobile phone thunder far from Chinese brand bright eye.
In India, the Chinese brand mobile phone, share, up from 4% in a few years ago to more than 20% at present, especially in 2015, the market share jumped by 6%, mainly rely on online electricity sales channels.
"In 2016, the Indian smartphone market will grow at 25%, the current market structure and the trend will continue." Prashant Kumar said analysis.
In February 2016, the government policy of protective tariffs, mobile phones import tariffs from 6% to 12.5%; At the same time reduces the local manufacturers of value-added tax collection. This means that, in domestic production and sales of mobile phones will be less than the tax of pay 12% imported from China. Every mobile phone brand new tax policy, accelerated the pace of establishing production line in India.
"OPPO mobile phone part of the product has started from foxconn India factory production and shipment." OPPO India's public relations department of the 21st century economic report
"Millet is also by foxconn factory OEM production of India, foxconn OEM brand China a lot." Prashant Kumar said.
It is difficult to have 10 factories in 2020
"2020 10 factories impossible." Cool India brand manager wang shuo economy for the 21st century reporter said, "it means that the scale of hundreds of thousands of people, need a lot of factory management and technical talents, these are not good looking for in India, from China's domestic find require English or Hindi high again, it's too difficult."
Cool is to promote domestic production, wang shuo to the reality of India's manufacturing. Previously, cool business in India is only help domestic brand to do OEM, produced in China, then put domestic brand sales to India. Since 2015, the transformation of cool do independent brands, through online sales channels, plan 2016 sales of 3 million units in India, as an equal with millet, lenovo and other brands.
"Foxconn expansion, not just its own thing, also need to suppliers to cooperate." Wang shuo said, "India's supply chain system is not sound, mobile phone production need many accessories, while India local lack of technical and production capacity."
"India's artificial cheap, of course, now the domestic workers more than 3000 yuan, 1300 yuan in India is sufficient hiring an IT professional college graduate." Wang shuo said, "but for the legal protection of the poor attaches great importance to India."
Foxconn did not reduce dependence on China's investment and." Prashant Kumar analysis said, "I've noticed that foxconn's production base in zhengzhou have recently started hiring, prepare the way for new apple products production."
"There is no Chinese market production and sales of the Indian market erosion problem." OPPO India's public relations department said, "the actual situation of the Chinese market and overseas market and stage of development is different."
