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Apple wants to move a significant part of the production from China to India

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Published on May 11, 2020

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Apple wants to move a significant part of the production from China to India

In an attempt to reduce its dependence on China as a base of operations, Apple may plan to produce up to $ 40 billion of smartphones in India by means of manufacturers Foxconn and Wistron, refers to The Indian Economic Times.

Several meetings between Apple executives and senior government officials in the course of the last few months, have paved the way for the iPhone maker also exploring the possibility of moving nearly a fifth of its production capacity from China to India and to increase its revenue by manufacturing, through its contract manufacturers, to about $ 40 billion in the next five years.

A senior government official told ET that the decision was linked to the regime of incentives linked to the production (PLI) of India, which has been introduced to increase the local production of electronic products, especially smartphones.

A company must produce phones to a value of at least $ 10 billion in a phased manner between 2020 and 2025, and will benefit from the system PLI and must reach the goal on an annual basis.

Currently, Apple sells a $ 1.5 billion phones in India, but less than $ 0.5 billion of these are produced locally. On the contrary, between the 2018 and 2019 Apple has produced $ 220 billion of products in China.

According to ET, government officials are willing to examine the concerns that Apple has with the system the PLI, including the way in which currency plant and machinery already in use in China and the extension of the commercial information requested by the scheme.

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