Apple plans to shift 20 percent of production to India, says report

Iphone Factory China
Iphone Factory China (Image credit: Apple)

What you need to know

  • A report says Apple may be planning to move more of its manufacturing to India.
  • Apple is expected to produce $40 billion worth of smartphones in the country over the next five years.
  • It would make Apple the country's largest exporter.

A report from India suggests that Apple has been in talks with Indian officials over several months as it looks to shift up to one-fifth of its production to India.

As reported by Economic Times:

Several meetings between Apple's senior executives and top-ranking government officials over the last few months have paved the way for the iPhone maker examining the possibility of shifting nearly a fifth of its production capacity from China to India and scaling up its local manufacturing revenues, through its contract manufacturers, to around $40 billion over the next five years, say officials familiar with the matter.

The report notes that the move would make Apple India's largest exporter. One senior government official stated:

"We expect Apple to produce up to $40 billion worth of smartphones, mostly for exports through its contract manufacturers Wistron and Foxconn, availing the benefits under the production-linked incentive (PLI) scheme"

The move would be solely aimed at increasing output for export to other countries, "essentially diversifying its production out of China". India recently introduced a new PLI scheme to try and coax manufacturers onto Indian soil. It offers a "production-linked incentive" to help boost India's manufacturing and to attract investment. The scheme reportedly provides incentives of 4-6% on incremental sales for up to five years. To comply, a company must make "at least $10 billion worth" of mobile phones during the period.

The report notes that the government expects mobile phone exports from India to cross $100 billion by 2025", a market Apple seems keen to take a slice of.

Stephen Warwick
News Editor

Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design. Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9