Apple in talks of shifting iPhone production from China to IndiaMay 12, 2020 19:05
According to the reports, Apple has been in talks in gearing up their fifth of the iPhone production from China to India in the coming five years. Majority of the production is going to be for export.
This is expected to shift the majority of the dependency of the Cupertino’s company from China. The same followed after a report that suggested that the company is going to manufacture AirPods outside the company for the very first time.
According to the reports from Economic Times, it is likely that $40 billion worth iPhones could be manufactured in India. Only $1.5 billion worth of the phones are sold locally in the country, which signifies that the major portion of the production will be for export.
There have been a number of meetings held between the senior executives at Apple and the government officials in India over the course of the last few months. They have been in talks of shifting fifth of the production of the iPhones from China to India over the course of five years.
If this deal is closed and the same happens, Apple could become the largest exporter for India.
“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,” said a senior government official.
The PLI scheme is a government one designed scheme under which they incentivize the foreign countries the permission to manufacture their goods in India, majorly for export purposes. The report further suggests some tough points that Apple could be facing because of this.
The close sources have reported that there are some irritants in the PLI scheme that the government has made.
“There are some problems with some of the clauses. For instance, valuing the entire plant and machinery already in use in its plants across China and other places at 40% of that value and the extent of the business information sought under the scheme,” the report suggested the flaws.
Apple is likely going to take advantage of the situation and scheme next week and the incentives drawn from this will be implemented from August 01 which is considered one of the faster ever planning and execution that has been undertaken in India.
This is news in development and further reports will be updated accordingly.
By Somapika Dutta