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Apple hopes to be less dependent on China, is moving factories to India

(BUSINESS NEWS) After many years of producing iPhones in china Apple is making some changes to move their factories to India and open markets there as well.

Apple products, Mac, iPad, and iPhone

Apple is making moves to shift large chunks of its iPhone production to India from China. According to the Indian Economic Times, the company is planning to produce $40 billion worth of iPhones over a span of five years via Taiwanese contract manufacturers Wistron and Foxconn.

While plans have been in motion since last year, the additional development comes on the heels of the coronavirus outbreak which disrupted tech company supply lines in China. The strategy will lessen Apple’s dependence on China as a base of operations.

“India isn’t a big market for Apple as the company sells only a fraction of its total output in India. It is actually looking at India as a base to manufacture and export, essentially diversifying its production out of China,” an official informed the Indian Economic Times.

According to the report, Apple currently sells $1.5 billion worth of smartphones in India as compared to its $220 billion worth of product sold in China where the company is the one of the top investors in the country. Apple directly and indirectly employs approximately 4.8 million people in China.

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It’s safe to say India is hoping to stake out a larger portion of global exports. IDC, a market research firm, reported Apple held a 38% market share of global handset exports in 2018-2019. The closest competitor is Samsung is a 22% share.

Indian government officials are expecting companies to begin applying soon once guidelines for a production-linked incentive (PLI) scheme take effect August 1st. A source close to Apple’s plans has commented how the PLI scheme still needs work. “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 are some of the irritants,” said the source.

Staff Writer, Allison Yano is an artist and writer based in LA. She holds a BFA in Applied Visual Arts and Minor in Writing from Oregon State University, and an MFA in Fine Art from Pratt Institute. Her waking hours are filled with an insatiable love of storytelling, science, and soy lattes.

2 Comments

2 Comments

  1. Anirudh Vyas

    May 18, 2020 at 5:55 pm

    Sarcastically –
    And obviously India is always ready –
    – To pollute its ponds, Lakes, Rivers, Seas and Oceans
    – To pollute its air
    – To work < 1$ an hour wages
    – Herd people in one place they proudly call economic zones.

    I am an Indian, I propose we do not accept this unless we have thought this long enough – I suggest we take *all* factors into account and see if Apple factories in India improve *our* quality of life. If it really does, this is great news; I do not think as Indians and politicians we think these things through (even though in short run this would great for everyone), we just say – oh great bring 'em in. Think about –
    – Population explosion/density
    – Pollution in air, water and minds (!)
    – Inflation

    Am I the only one who misses an India that was once peaceful, gentle, green wealth?

  2. Pingback: World's biggest trade deal? Here's what you should know

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