The world is no longer run solely by governments. Today, megacorporations like Apple influence how a country is run, the trajectory of the global economy, and even global politics.
There is increased economic turmoil in China, caused mainly by Covid19 crisis and its zero-covid policy that disrupted economic and production activities. That’s why Apple made its move to diversify its production capabilities, by moving some of it to India.
Considering that 50% of Apple’s revenue (approx. $200 billion) comes from iPhones alone, it’s an obvious move for them to try and secure their best source of revenue by decreasing its reliance on Chinese manufacturers.
India is clearly a great choice for Apple since it has loads of free and inexpensive labor (having a very high unemployment rate) and impressive economic growth in the past few years. This growth is especially accentuated in the phone manufacturing area, where India attracted other important technology companies, such as Foxconn, Nokia, Pegatron, and many others.
This makes you wonder: is India emerging as the world’s greatest factory in the near future, dethroning China? And if so, what implications will this have on the global economy and our daily lives?
You will find all of this and much more, in this week’s spotlight article written by Sam Warain.