News that Apple will move 20% of iPhone production base from China to India

Apple plans to move nearly 20 percent of its iPhone production base from China to India, the Indian economic newspaper The Economic Times reported. It is estimated that this plan will make Apple the largest export company in India, producing about $ 40 billion worth of iPhones in five years.

Apple may take a bigger bite of India's manufacturing pie-The Economic Times
https://economictimes.indiatimes.com/tech/hardware/apple-may-take-a-bigger-bite-of-indias-manufacturing-pie/articleshow/75665975.cms

Apple Is Reportedly Looking To Move 20% Of Its Production To India From China-tech
https://in.mashable.com/tech/13898/apple-is-reportedly-looking-to-move-20-of-its-production-to-india-from-china

Apple has been moving to move its iPhone production base in China to India for some time, and in 2019 Foxconn announced that it will start manufacturing iPhones in India.

Foxconn, an iPhone manufacturer, announced that it will start manufacturing iPhones in India-GIGAZINE

In addition, The Economic Times said on May 11, 2020, `` Apple has nearly one-fifth of its production capacity as a result of discussions over the past few months between senior Apple executives and senior government officials, according to government officials familiar with the matter. Has begun to consider a plan to shift China from China to India. '

A government official told The Economic Times, `` Apple is leveraging the production-linked incentive (PLI) scheme announced on April 1st, through contract manufacturers Wistron and Foxconn for up to $ 40 billion over five years. It is expected to produce a considerable amount of smartphones. '

PLI is a system that aims to promote large-scale production and export of high-tech equipment in India, and provides 4-6% of the increase to companies that increase production of high-tech equipment. To be paid as.

However, in order to take advantage of PLI, there is a condition that at least $ 10 billion worth of products must be actually produced between 2020 and 2025, and there are also production targets that must be met every year. On the other hand, the production of smartphones currently produced by Apple in India is said to be about 1.5 billion dollars (about 16.17 billion yen), which is a considerably large production to realize the plan. It is expected that capacity expansion will be necessary.

Also, although India is the second largest smartphone market in the world, Chinese smartphone makers have already swept the market, and it is difficult for Apple, which has been delayed, to increase its share even if it rapidly expands production in India. There is also a point.

The most promising `` India '' in the next smartphone market has been suppressed by the Chinese, and it is expected that the Chinese will continue to hold the hegemony of the smartphone-GIGAZINE

Therefore, a government official informed the The Economic Times said, 'India is not a big market for Apple. Therefore, Apple views India as' an export base for diversifying China-dependent production system '.' He said that most of the iPhones produced would be sent for export outside India.

`` By manufacturing the latest smartphones in India, Apple will be able to sell smartphones at a more competitive price, which is a difficult route, '' said Mashable. If Apple successfully decides to move its production base to India , not only will it give a big impetus to the ' Make in India ' plan, but other companies could follow Apple. '