Apple's iPhone production in India is starting to feel the impact of geopolitical tensions between India and China, due to limitations in the issuances of entrance visas, the South China Morning Post reports.
India and China have been in a state of heightened tension following clashes at the border earlier last year. India has banned a number of Chinese apps, and is now issuing visas to Chinese nationals to enter the country at a slower pace than normal. According to people familiar with the situation, India has been at a near standstill with issuing visas for Chinese engineers, who are needed for Apple suppliers in the country to set up factories or get production underway.
It's important to note that countries around the world have beefed up border control measures amid the global health crisis. The South China Morning Post fails to address the health crisis as possibly being the reason that India has been slow to issue visas. Either way, however, India's tight border control does seem to be hindering production.
The news comes following reports this week that Prime Minister Narendra Modi's government is set to announce a new PLI (performance-linked incentive) scheme to bolster the country's exports of IT products such as tablets, servers, and PCs. Apple's reportedly nudging the government to increase the scheme's budget as it hopes to begin iPad production in the country.
Apple suppliers such as Foxconn and Pegatron have already engaged with the Indian government on past schemes by increasing investment in the country and operating mass production lines for select models of the iPhone. This is all part of an overarching push by Apple to de-prioritize China as its main production hub, and instead move to countries such as India or Vietnam.
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China hit its peak in 2016. Its on its way down. India, a more capitalist/demoratic based will eventually "out-china" china in the next 25 years. So my money is on India becoming the second super power by 2050 outpacing china by a BIG margin. Its kind of over for china. Growth is not really happening anymore and yes china pushed fake data and numbers to appear bigger than they really are. Its been like this for centuries.
Never get involved in a manufacturing war in Asia...or never go against a sichuanian when money is on the line...or something like that.
Lol you don't see all these companies exiting china in masses? Yes you can totally stomp on sichuahnian when it comes to money cuz next economy KING is india. Its kind of over for china, growth has slowed and its on its way down. India will outpace china by 2050 because they have a more capitalist/democratic system than china. There is a limit on how much growth china will have due to the government oppression/suppression and economy/market manipulation. China doesn't have monopoly on production....of COURSE you can go to war with them in manufacturing its a free system. Vietnam already produces 100% of Samsung's products which they exited china in 2008. 98% of china is still third world may I remind you.
I hope they limit the production in India to lower end models and not the flagships.
Apple will exit china completely in the next decade. I don't associate "flagship products" with china or india....but china feels a bit more cheap and poor so my vote is india.
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