Apple pushes for incentives in India as it plans iPad assembly: sources
Apple Inc. is planning to participate in a new program to boost exports of computer products from India, which is part of what government and industry sources are planning to introduce manufacturing iPad tablets to the Asian country. from South.
India launched a $6.7 billion plan to boost smartphone exports last year, as Prime Minister Narendra Modi stepped up efforts to promote electronics manufacturing and create jobs.
Apple, which has steadily increased production of iPhones in India to reduce its reliance on Chinese manufacturing, has participated in this program through its subcontractors.
The government is now preparing to unveil yet another incentive to boost local manufacturing of computer products, including tablets, laptops and servers, three sources closely involved in drafting the plan told Reuters.
The new performance-linked incentive program (PLI), which provides cash back to manufacturers for exports, will have a budget of up to 70 billion rupees ($964.5 million) over five years, have said. indicated the sources. It should be launched by the end of February.
Apple, along with others, is pushing for a larger budget expenditure of Rs 200 billion before this plan is finalized as India does not yet have the scale or supply chain to manufacture products. IT systems and competes with duty-free imports of technology products. , two of the sources said.
Apple’s push comes at a time when its iPhone supplier, Wistron, is just restarting operations at a South Indian factory after angry workers went on a rampage last year. Apple has yet to remove the Taiwanese manufacturer from the trial period.
Apple declined to comment for this story.
New Delhi is also planning another LIP, with a budget of around Rs 50 billion over five years, to boost domestic manufacturing of wearable devices such as smartwatches, the sources said, adding that the plan could be announced in the future. two months.
All sources declined to be cited as the plans are not public.
IPAD MADE IN INDIA
Apple assembles much of its iPads in China, but is rapidly diversifying production to markets such as India and Vietnam to minimize the impact of the US-China trade war and the coronavirus crisis .
Its main supplier, Foxconn, builds assembly lines for iPads and MacBook laptops in Vietnam, Reuters reported late last year. Other iPad assemblers include Compal Electronics of Taiwan and BYD Electronic International of China.
In India, Apple will likely have iPads assembled by one of its existing suppliers in the country as early as this year, two of the sources said, although its plans could be delayed as India makes it difficult for BYD to enter the middle. of its mistrust in giving new technology enterprise to Chinese companies.
The government is asking Apple to have the iPads assembled by its subcontractors here, the non-Chinese companies, a government official said.
It was not immediately clear which of Apple’s three subcontractors in India – Foxconn, Wistron and Pegatron – would assemble iPads.
Read more: Amazon to manufacture Fire TV Sticks in India’s first manufacturing campaign
Pegatron and Wistron did not respond to requests for comment while Foxconn said it does not comment on specific operations or work for a client.
India’s IT ministry also did not respond to a request for comment.
India banned more than 200 Chinese-made mobile apps last year, saying they threatened the country’s security. He also announced new controls on purchases of telecommunications equipment.
Apple, based in Cupertino, Calif., Began assembling iPhones in India in 2017 and has since ramped up manufacturing operations through local units at Foxconn and Wistron. Pegatron also established a base in India last year.
Foxconn will invest up to $1 billion to expand a factory in southern India, where the Taiwanese contract maker assembles iPhones, Reuters previously reported.
The three Apple vendors have also committed around $900 million over five years to make iPhones in India.
