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Apple prepares a large shift in iPhone production to India

Apple prepares a large shift in iPhone production to India

In an attempt to reduce its dependence on China as an operating base, Apple is considering moving a substantial percentage of iPhone production to India, a move that estimates an estimated $ 40 billion in revenue.

This is what The Indian Economic Times reports, according to which there have already been several meetings between Apple's senior executives and high-level government officials over the past few months. Precisely these meetings would have paved the way for the iPhone manufacturer, and would have focused on the possibility of moving almost a fifth of its production capacity from China to India, and thus increasing local manufacturing revenues, through its contract manufacturers. : Wistron and Foxconn.

It would be about $ 40 billion in revenue over the next five years. A senior Indian government official, reported by the country's newspaper, said the decision linked to the state incentive regime to support the expansion of local production of electronic products, especially smartphones.

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Companies wishing to benefit from these state incentives, signed PLI, must produce mobile phones worth at least $ 10 billion in India gradually between 2020 and 2025, and will have to achieve the target on an annual basis. Apple currently sells $ 1.5 billion in smartphones in India, but only a small portion of less than $ 0.5 billion is produced locally. In contrast, in 2018-2019 Apple produced smartphones in China for $ 220 billion.

According to ET, government officials are willing to examine Apple's concerns about the PLI system, including how it assesses plants and machinery already in use in China, as well as extending the commercial information required under the scheme.

The agreements with India and Apple for the displacement of iPhone production in the country concern only a fifth of the overall production of the Cupertino terminal, but in recent months more and more reports have been circulating that indicate production shifts also for other products outside China. For example it seems that by now 30% of the classic AirPods, therefore not the Pro model, are produced in Vietnam.

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