Make-in-India iPhone story shows govt isn’t really reducing imports or helping produce cheap

Make-in-India iPhone story shows govt isn’t really reducing imports or helping produce cheap

Make-in-India iPhone story shows govt isn’t really reducing imports or helping produce cheap

View on r/India by xperia3310

  1. > The latest iPhone models—the ones assembled here—cost anywhere between 20-63 per cent more in India than they do abroad.

    The basic premise of the article is outright false.

    iPhone Pros do cost significantly more in India. But iPhone Pros are NOT made in India at all.

    Base iPhone 15 is 80k INR. That is around $940. However this includes 18% GST tax. Subtract the tax and you get $827. This is pretty much the same as the $799 selling price in US.

    US does not have GST, instead has different sales taxes depending on State and City. Sales tax in some locations is as high as 13.5%, which isn’t far from 18%.

    >It’s barely better to import inputs and assemble the finished products here than to import the entire product itself.

    This is such a hilariously bad take that I had to check out the author. Apparently he has a BA in History, Diploma in Journalism and an MBA in Human Resources. Trash in trash out.

  2. The reporter is a typical reporter of our times, outright idiot, probably that is qualifying criteria for today’s journalist.

    He is comparing market prices when he should have compared Bill of Material (BOM) prices. Typically BOM prices are 25-40% of market prices. Now another thing is iPhones are premium products, so even if Apple manufactures an iPhone for Rs. 1000 in India, it will sell the product for 1 lakh.

    A guy sometime back told me Nike was selling shoes for 3000 which they were manufacturing for 300 (10 years ago)

  3. *As much as the Modi government talks about minimum government and maximum governance, there’s no denying that the government is now trying to do it all—reminiscent of the overbearing approach taken in the pre-liberalisation era. In the government’s mind, it can do anything.*

    *Private sector not manufacturing? Government will fix it. Indians spending too much abroad? Government will fix it. Consumers not spending enough? Government will fix it. Food is becoming too expensive? Government will fix it. Imports are too high? Government will fix it.*

    *The thing is, many of these are not for the government to spend lots of money ‘fixing’, and many of these attempts will end either in failure or have unintended consequences.*

  4. *Then there is the government’s overwhelming belief that it can transform India into some sort of manufacturing hub for the world. What’s actually happening is that Make in India is making things more expensive for Indians. The reason China has become a manufacturing behemoth is because it does it far cheaper than the rest of the world. This is largely because of the way the Chinese government subsidises its industry and some part is to do with the economies of scale that those vast factories make possible.*

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