What you need to know
- A new report has revealed how Apple has struggled to break ground on its manufacturing expansion in India.
- According to The Information, one potential manufacturer fell foul of several glaring health and safety violations.
- Whilst labor in the country is significantly cheaper, these costs are offset by import costs and limits on worker overtime.
A new report from The Information has highlighted some of the struggles Apple faces in bringing the manufacturing of its products to India.
The introduction to the report states:
The report notes that whilst a Chinese worker at a Wistron factory could make $700 a month, an Indian worker doing the same job would only make a quarter of this. However, cheap labor costs are offset by the fact that Apple has to import all of its components into the country for assembly, triggering heavy customs duties as well as shipping and storage costs. Indian labor laws also prevent workers from taking on more overtime compared to Chinese workers.
The report highlighted how Apple visited on supplier named Superpacks in 2018:
After months of pushing, the company stopped giving updates and failed to fix the violations. As you can imagine, it did not get the contract. The report also claims that suppliers are reluctant to improve standards because order sizes from Apple are so small compared to China's orders.
You can read the full report here.
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Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.
Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9