The idea that Apple AAPL -0.05% might or should produce iPhones locally inside the Indian economy has been long discussed. From our point of view here, thinking about economics, it would actually be a fascinating test of the abilities, the sophistication, of that Indian economy. For the question would be whether there would be the creation of a supply chain capable of meeting the volumes and standards that Apple requires. The answer isn’t clear cut which is why the idea, if it goes ahead, will be such a fascinating thing to observe. The results from Brazil show that it’s not an easy thing to create, such a supply chain. There’s also a certain mordant humour to the idea. Over here in Europe everyone is shouting at Apple for the manner in which they dodge local taxation. And yet a decision to manufacture in India would at least partly be driven by the desire to dodge local taxation : Price is also an important factor for Indian customers and should Apple begin to manufactu
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