You heard right: Huawei's making phones in Chennai

Asian tech giant Huawei is to start manufacturing smartphones in India next month, in a move that could signal China is starting to lose its shine as the world’s low-cost manufacturing sweatshop, with even native companies looking to expand elsewhere. Huawei, which is currently the world’s third largest maker of smartphones by …

[monty75]

Illustrated with a picture of the Taj Mahal - almost 1000 miles from Chennai.

[404]

That would be because Chennai is world famous for their tacos... would cause too much confusion.

[Gis Bun]

I've seen one site uses beige keyboards from the 90s [or before] as their picture. Might as well throw some 8" floppies while at it.

[David Neil]

Great thing about a race to the bottom on workers pay

There's always some poor bastard "willing" to do it cheaper

[Finder Keeper]

Re: Great thing about a race to the bottom on workers pay

A more charitable explanation might be that the previously poor bastard is now a rich bastard and doesn't want to do the poor bastard's job any more.

[YARR]

...or for countries where "poor bastard" people live this may be the last chance to earn income through export of manufactured goods before the robots take over. Once the labour cost is eliminated manufacturing will be based nearer the consumer, considering energy / environmental costs.

[Anonymous Coward]

Labor is OPEX, robots CAPEX. Which way do you think CxO's are going to come down on?

[allthecoolshortnamesweretaken]

Robots are OPEX if you rent/lease them. Just like the company cars.

['s water music]

protectionism

Is this not as likely to be about gaining improved access to a growing smartphone market as presumably China is starting to plateau?

[maffski]

Re: protectionism

In this case it's due (at least in part) to a 12.5% duty on imported smartphones vs. no duty on importing components and carrying out the assembly in India.

The assembly cost of a smartphone is minimal compared to it's wholesale cost so even if Indian assembly costs significantly more than Chinese it's still cheaper.

[Anonymous Coward]

Re: protectionism

Also factor in attempting to deal with the exasperating bureaucracy India has, especially if you are a foreign firm. Having a local partner is essential to maintaining one's sanity.

[Pen-y-gors]

Just wait

until the Norks enter the market. Production costs using slave labour: nil, and if any 'staff' want a holiday you send them to kingdom come over the end of a field gun.

[Gis Bun]

If India gets to expensive they'll outsource to the Martians but the Martians will have to pay for the shipping.