Apple Eyeing On India As Its Next Big Production Hub

Apple Eyeing On India As Its Next Big Production Hub


  • Apple eyeing India as its next big Production hub
  • Apple manufactures iPhone XR and iPhone 7 in India
  • Apple plans to move 20% of its production from China to India

The US based tech giant, Apple, is planning to move 20% of its production capacity from China to India. As per the reports, the tech giant wishes to reap the benefits of the Indian Government’s new Production Linked Incentives (PLI) scheme which is meant to encourage domestic production in India.

As of now Apple contract manufacturers, Foxconn and Wistron, to produce its smartphones and many other products. Going by the reports, the company could use these contractors to manufacture “up to $ 40 billion worth of smartphones” in India, the majority will be to export to other markets overseas.

The company holds a small share of the Indian smartphone market at the moment, so moving such a major chunk of its production here could only be for export purposes. Apple produces iPhone 7 and iPhone XR in India, while iPhone SE and iPhone 6S, which also used to be produced her, have been discontinued from Apple’s global product portfolio.

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Though the company has not confirmed these reports as of now, however, Apple has had some success when it comes to the Indian market in the recent past. As per a report shared by IDC (International Data Corporation), earlier this month, Apple took close to 63% of the Indian premium smartphone market in the last quarter.

The company could also benefit from the relaxations offered on local sourcing norms by the Central Government in 2019. At the time, Apple thanked the government for the move and said it looks forward to “one day welcoming customers to India’s first Apple retail store”.

There are rumours that the firm is expanding the retail efforts in India. Apple, as of now, sells through resellers in India and has not managed to launch its very own stores. In a call with investors in February, Tim Cook, Apple’s Chief Executive Officer (CEO), said that the first Apple retail store is expected in 2021.

Just recently, Apple announced iPhone SE which will be sold globally, including India. The company has also announced the Hoempod smart speakers with which the company is expanding its portfolio beyond smartphones, tablets and laptops.



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