Inside Apple's India Dream

asia.nikkei.com

5 pointskawera2 comments

For the sake of India I hope apple sticks to the plan. Indian laws are regressive and labor laws archaic and judiciary dysfunctional. But the good thing is once you have figured things out even law does not matter much. Companies like Suzuki figured it out.

Apple's existing production facilities have serious quality issues in India but with time I am sure Indians will nail it well.

Suzuki mostly sells its crap to the Indian market. Doesn't really sell much to the first world.

And Raghuram Rajan agrees. He has been saying it wont work and govt incentives should have gone to the services sector (which has been India's strength) instead of Apple - https://www.youtube.com/watch?v=PUDaHgHC8ao

Indian labour can be a nightmare thanks to the numerous factions (religion/caste/language differences). All sides needs to be bribed to keep things running drama free. And that cuts into margins, in ways you wont see in other countries.

Services firms margins are 2-4x more than manufacturing margins, which is why their Services sector has thrived.

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