Foxconn Invests Another $500M in India, iPhone Production in India, Twitter Looking To Offset App Store Revenue Share (Daily Update)
We begin with Neil’s thoughts on Foxconn announcing another $500 million investment in India to diversify its supply chain. The discussion then turns to iPhone sales and production in India and rumors of Apple looking to greatly expand production in the country. The update concludes with an examination of Twitter relaunching Twitter Blue with different pricing to reflect App Store revenue share percentages.
Hello everyone. Happy Monday.
With two weeks left of 2022 for many of us, we are continuing to run forward.
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Let’s jump into today’s update.
Foxconn Invests Another $500M in India
In an article published on December 9th, here’s South China Morning Post:
“Foxconn Technology Group, Apple’s biggest contractor, has invested US$500 million in its Indian subsidiary, as the Taiwanese manufacturing giant moves ahead to diversify its supply chain after China’s stringent pandemic controls disrupted production at its top iPhone plant in the central city of Zhengzhou.
The cash injection into Foxconn Hon Hai Technology India Mega Development Private Limited, made through Foxconn’s Singapore unit Foxconn Singapore Pte Ltd, involved the purchase of over 4 billion shares, according to a filing on Thursday to the Taiwan Stock Exchange…
Foxconn signed a US$300 million agreement with a Vietnamese developer in August to expand a new local plant, and plans to quadruple the workforce at its iPhone-making Indian plant over two years, according to reports by Reuters earlier this year…
Despite Foxconn’s move to diversify its manufacturing footprint, chairman Liu Young-way said in last month’s earnings call that the company planned to spend the largest portion of its increased capital spending next year in mainland China.”
Given the long list of issues at Foxconn’s Zhengzhou facilities, this article is getting a larger-than-usual reaction. Some are looking at the timing of Foxconn’s $500M Indian investment as the company sending a clear signal to Chinese officials.
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Elon Musk Goes After Apple…Again, Revisiting the Apple/Parler Controversy, Apple vs. Twitter (Daily Update)
We kick off today’s update with Neil’s thoughts on Elon Musk going after Apple yet again. The update then turns to the Apple/Parler controversy from 2021 which provides insights as to how Apple is approaching Musk’s Twitter. We conclude with what Neil suspects is actually going on between Apple and Twitter as it pertains to the App Store.
Hello everyone. Let's jump right into today's update.
Elon Musk Goes After Apple…Again
Back on October 27th, Elon Musk officially bought Twitter. For the past month, there has been a nonstop stream of chaos and surprises come from Musk and his small group of friends brought in to come up with a working strategy for the company.
While Musk has made plenty of unforced errors out of the gate - primarily by moving way too fast - the broader strategy of Twitter betting on paid subscriptions makes sense. (Musk needs to think much broader than just $8/month for what amounts to fake verification.) Ad-funded business models have come under pressure due to the economy and competitive forces. Revenue diversification would be a long-term positive for Twitter.
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