The COVID-19 pandemic has disrupted supply chains of companies around the world
and has made some of them reconsider the chain as this reliance on Chinese
manufacturers has revealed vulnerabilities during the current situation. Hence,
looking to diversify its production,Apple
[https://www.crunchbase.com/organization/apple]is reportedly looking to move
nearly 1/5th of its production from China to India.
[https://tech.economictimes.indiatimes.com/news/mobile/apple-may-take-a-bigger-bite-of-indias-manufacturing-pie/75666667] byETreveals that Apple executives have been in touch with Indian government
officials for the last few months and are now considering the possibility of
moving a considerable chunk of their manufacturing operations to India through
Apple?s contract manufacturers.
?We expect Apple to produce up to $40 billion worth of smartphones, mostly for
exports through its contract manufacturers Wistron and Foxconn, availing the
benefits under the production-linked incentive (PLI) scheme,? a senior
government official toldET.
For the uninitiated, the PLI scheme was recently introduced by the government to
boost domestic manufacturing of mobile phones and specified electronic
components. For a company to take benefit of the scheme that provides an
incentive of a 4-6% on incremental sales (subject to conditions), the company
must manufacture at least $10 billion worth of mobile phones in a phased manner
between 2020 and 2025.
The report points out how far Apple currently is from achieving that number.
Apple currently sells smartphones worth approx. $1.5 billion in India out of
which only $.0.5 billion is manufactured in India.
iPhone XR (Image Source: Google)Apple already manufactures older iPhones, like
the iPhone 7 and the iPhone 8, in India via Winstron and Foxconn. It recently
also started the production of the iPhone XR in India. These phones are
manufactured in India to support the local demand and the demand of nearby
The report also points out that there were some ?irritants? for Apple in the
government?s PLI scheme. But if all goes well, and Apple does decide to move its
manufacturing to India, it could provide a huge impetus to the ?Make in India?
programme and inspire other companies to follow suit.
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