Apple Inc is looking to increase its share of iPhone production in India to as much as 25 percent, according to Indian Minister of Electronics and Information Technology Ravi Shankar Prasad.
The move comes as Apple looks to diversify its production base away from China, where it currently manufactures most of its iPhones. India has become an attractive option for Apple as the company seeks to reduce its dependence on China and take advantage of the country’s lower production costs.
In a statement, Prasad said Apple had proposed to increase its production share in India to 25 percent. The company is currently in the process of setting up a new facility in the southern state of Karnataka, which is expected to be completed by the end of this year.
The move is part of Apple’s broader effort to increase its presence in India. The company already has two manufacturing plants in the country and is looking to open more. It is also in the process of setting up a retail store in the country, which is expected to open later this year.
India is the world’s second-largest smartphone market, and Apple is looking to capitalize on the growing demand for its products. By increasing its production share in the country, Apple is hoping to make its iPhones more accessible to Indian consumers and increase its market share.
The move is also expected to create jobs in India, as Apple is expected to hire thousands of workers to staff its new facility. The new plant is expected to produce up to 200,000 iPhones per month, and the increased production will help Apple meet the growing demand for its products in the country.
Overall, Apple’s move to increase its production share in India is a positive step for both the company and the country. It will help Apple diversify its production base, create jobs in India, and make its products more accessible to Indian consumers.
Apple Inc. is looking to expand its production in India from 5-7 percent to 25 percent, according to India’s trade minister Piyush Goyal. Apple has already begun iPhone assembly in the country in 2017 via Wistron and later with Foxconn, in an effort to comply with the Indian government’s push for local manufacturing. Foxconn plans to quadruple its workforce at its iPhone factory in India over two years. India’s electronics and information technology minister, Ashwini Vaishnaw, tweeted that Apple’s exports from India had hit $1 billion in December.
The move comes as a result of China’s COVID-19 related lockdowns and restrictions, and rising trade and geopolitical tensions between Beijing and Washington. J.P. Morgan analysts estimated last year that a quarter of all Apple products would be made outside China by 2025, from 5 percent currently. Apple has not yet commented on the timeline for achieving its 25 percent goal.
India is quickly becoming an attractive destination for businesses seeking to diversify their production away from China. The Indian government is actively encouraging businesses to manufacture in the country, offering incentives such as tax breaks and subsidies. Apple’s expansion in India is a testament to the country’s potential as a manufacturing hub. If Apple succeeds in its goal of increasing its production in India to 25 percent, it could be a major boost to the Indian economy and its manufacturing sector.