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Guest FriendofGreece

$4 smartphone and $10 laptop

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Guest FriendofGreece

Well, the $10 laptop is scrapped but the $4 smartphone is brand new. All I can say for the $4 smartphone is although the labour costs are minimal, the price of the smartphone is also minimal. Let's see how long this will last.

 

http://www.reuters.com/article/us-india-labour-telecoms-idUSKCN0ZH3G7

 

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Guest FriendofGreece

The thing is your iPhone probably did not cost more than $10 to produce, the rest is profit for the multinationals.

 

Robots ... yeah, robotization is coming fast. China is replacing its ageing workforce by robots, something that would be incomprehensible to even think about five years ago with the population that it has. India which is counting on the ageing workforce of China to become the manufacturing hub of the world with its young population may not be able to do that, as robots are taking over.

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It costs Apple around 200 USD to produce an iPhone and labour cost is not much of a factor in that. The display alone costs around 50 USD, Processor around 20, ram around 15, cam around 10, battery around 5, etc...

 

Manual labour is a minor factor and it occurs primarily at the assembly stage since most of the components are highly integrated and produced with next to zero manual labour. So I wonder to what extend the Indian government is subsidising that project.

 

If you take the cheapest display, processor, ram, battery, controllers etc you are already at a component cost of over 20 USD. So the whole thing sounds fishy. Remainds me of the 10 USD tablet some Indian company had announced a bit over a year ago. It ended up costing around 100 USD.

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Guest FriendofGreece

Wow, the materials for the iPhone are that much! I wonder how much cost the materials for a laptop, would you happen to know? 

 

You may be right that the Indian government must be subsidizing the $4 phone. There are so many foreign competitors in that field and India is promoting hard their "Make in India" project. If this takes off and the product works well, it is a matter of gaining domestic market share first, I guess, and gradually build up the quality.

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Guest FriendofGreece

Turns out the prototype they used to promote the $4 smartphone was made in China and was retailed for $50. They took the Chinese smartphone, scratched out the name and put an Indian name on top.  :D

 

Now asking for money from the Indian government.

 

http://qz.com/725669/the-maker-of-the-4-smartphone-now-wants-7-5-billion-from-narendra-modi/

 

All they do is import the parts and assemble them in India.

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Yeah, that's pretty much what I thought when I read about it.

 

Problem with India is that, apart form the military sector, they don't really have a strategic plan for the development of key technologies. The domestic CPU project India had announced in 2009 just disappered and now they are talking about a new RISC type cpu project. The Chinese on the other hand manufactured their first domestically designed CPU in 2002 and are now at the 14th iteration of domestic designs.

 

The Chinese use their domestic CPU designs in their supercomputers and are currently operating the top 2 supercomputers in the world and have 3 entries in the top ten. And they do of course produce cpu's for mobile and embedded application as well as all peripherals (such as displays, cpu receivers, cellular chips and what not).

 

China followed Japan's playbook and emulated the MITI which is the strategic research and technology agency that got Japan to where it is now. The Koreans and Taiwanese did the same by the way. And they did keep politics out of strategic planning which doesn't seem to be the case in India.

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