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by mehrdadn 2013 days ago
> Worker wages were their main reason to move from China to India.

You mean, after the Foxconn PR fallout? And to my knowledge the "main reason" they moved out of China was to reduce their dependence on China due to ongoing political tensions, not that they were feeling bad about worker wages.

3 comments

Also the fact that India required Apple to move manufacturing into the country in order to have a retail presence:

https://www.reuters.com/article/us-apple-india-idUSKCN0YG2LW

> NEW DELHI (Reuters) - India has said Apple Inc must meet a rule obliging foreign retailers to sell at least 30 percent locally-sourced goods if it wishes to open stores in the country, a senior government official told Reuters.

> Apple is hoping to expand its retail presence in India, one of the world’s fastest-growing smartphone markets, at a time when sales in the United States and China have slowed.

> A change in legislation last year exempted foreign retailers selling high-tech goods from the rule, which states 30 percent of the value of goods sold in the store should be made in India.

> However, Apple’s products were not considered to be in this category, said the official, who has direct knowledge of the matter.

I like your "Foxconn PR fallout". [1]

Regarding your issue, let me copy-paste randomly [2]:

> “With India’s labour cheaper compared with China, and the gradual expansion of its supplier base here, Apple will be able to use the country as an export hub,” Neil Shah of Hong Kong-based tech researcher Counterpoint said.

> India is also working to boost electronics manufacturing by firms such as Foxconn and last month launched a $6.65 billion plan, offering five global smartphone makers incentives to establish or expand domestic production.

> Building more phones in India will also help Apple save on import taxes that further push up its prices.

[1] https://www.youtube.com/watch?v=CINZhtB2aHU

Edit:

[2] https://www.reuters.com/article/us-foxconn-india-apple-exclu...

Parent's comment was vaguely worded so I think you mistook it as saying Apple wanting to pay higher wages.
>was to reduce their dependence on China

No, that's the PR spin on why they (moved part of) their production to India. They could have moved OUT of China (citing bad Chinise gov etc.) and IN TO Germany, UK, France, Spain, Italy, etc. were countries operate under properly functioning democracies. Buuuuuut they didn't.

They only moved IN TO India for the reduced costs (aka capitalism). And when India salaries outgrow e.g. country XYZ salaries, they will move there (in a decade or so).

The political tensions is BS imho. Capitalism is capitalism, and Apple offers master classes in capitalism.

They’re not mutually exclusive. Political tensions are clearly also relevant to companies looking for a reliable partner.
In this case political tension has very little to do with China and very much with India. India is one of the largest markets Apple has yet to penetrate, primarily due to excessive import tax as the Indian government (much like the Chinese) requires manufacturing within the country.

Let’s not fool ourselves into thinking China is not a reliable partner, or that Apple cares much about worker rights here (see wage fixing between FAANG as one example that likely affects many here at HN) or abroad. This was purely about expanding into a new market.