Apple’s ‘big plans’ for India include production of iPads, AirPods: Report
The US MNC intends to develop an alternate supply chain in the country with more of its partners setting up shop and existing partners expanding capacities
US multinational Apple may restart its efforts to manufacture its iPads in India, according to a report by Moneycontrol, quoting anonymous sources in the government.
The Cupertino-based company’s previous attempt to produce iPads in India in partnership with China’s BYD did not succeed due to government restrictions that were in place for geopolitical reasons. The company instead opted to carry out its manufacturing plans with BYD in Vietnam.
Apple’s ‘big plans’ for India
However, according to the Moneycontrol report, the situation has changed now and the government is keen that Apple should not only manufacture iPads but also laptops and desktops in India in the coming years.
Apple is supposed to have shared big plans for its operations in India in the next two to three years as it intends to build an alternate supply chain in the country to the one it has in China. If these plans fructify, it would mean that more Apple partners would come to India and its existing partners in India would expand their capacities.
Apple increasing iPhone production
The multinational is aggressively increasing its iPhone manufacturing capabilities globally, and in India through Foxconn and Tata Electronics.
The Tata company, after acquiring Wistron’s operations in India, is now reportedly planning to buy Pegatron’s India operations as well. Pegatron has an iPhone manufacturing unit in Chennai and another factory under construction.
Currently, about 14 per cent of iPhones are manufactured in India (amounting to a value of about $14 billion). Apple plans to increase this to 25 per cent in the next 3-4 years, according to a government official. This would entail developing a network of local vendors to reduce the company’s dependence on suppliers from China.
Apple has reportedly exported over $2 billion worth of iPhones from India during the first two months of the current financial year. Last year, the company exported more than 10 million iPhones, compared to over 6 million iPhones in 2022.
AirPod cases production
Apple is considering an increase in production of components for AirPod wireless charging cases through Jabil Inc in India. Jabil is an American multinational contract manufacturing firm, and it has started trial production of parts of wireless charging cases in Pune. Apple may also ask Foxconn to manufacture these components in India, said the source.
Not only that, Apple may begin production of AirPods (true wireless stereo or TWS) in the country to cater to export as well as domestic requirements.
Apple has the highest market share globally for TWS through its AirPods.
If all these plans take shape, India may soon be a centre for manufacturing three of Apple’s product categories – iPhones, iPads, and AirPods.
