Skirmishes between India and China along the border prevent Apple and others from shipping devices to India
Besides Apple and Foxconn, other companies whose shipments are being held up at unnamed Indian ports include networking company Cisco, computer manufacturer Dell and automobile company Ford. Apple, Cisco, and Foxconn did not respond to requests for comments while Dell declined to give a statement; Ford said a shipment of auto parts was held up by Indian authorities seeking more information.
India is the second-largest smartphone market in the world after China. But as a developing market, the average income in India is low which is why value for money manufacturer Xiaomi does very well in the country. It also explains why it is so important for Apple to build some iPhones in India to save on the $100 import tax.
Last year when the U.S.-China trade war nearly led to tariffs being placed on iPhones imported into the U.S from China, Apple reportedly took a long look at moving some of its production out of China. While India was one market that was considered, there were questions about whether the country could support a supply chain that would produce components with the quality and quantity that Apple needs. Today’s news doesn’t present India in the best light as a risk-free area of production.
Most analysts believe that Vietnam could take some of Apple’s production away from China. It all really depends on the future relationship between China and the U.S. and whether tariffs are eventually placed on iPhone units imported from China.
