Apple currently produces most of the iPhone through manufacturing in China. To overcome dependence on China, Apple will reportedly move iPhone production in significant numbers to India.
This news was first reported by the Economic Times. Mashable reported on Tuesday (05/12/2020) that Apple executives reportedly had been communicating with the Indian government in recent months.
Apple reportedly plans to move 20% of iPhone production to India to produce smartphones with a total value of USD 40 billion. This production will be handled by manufacturing companies such as Wistron and Foxconn.
‘Apple will produce smartphones with a total value of USD 40 billion, mostly for exports through contract manufacturing of Wistron and Foxconn, utilizing profits under a production-linked incentive (PLI) scheme,’ Indian government officials told the Economic Times.
The PLI scheme is an initiative recently introduced by the Indian government to encourage the domestic smartphone manufacturing industry. Companies that want to benefit from this scheme must produce at least $10 billion worth of smartphones in stages between 2020 and 2025.
It currently sells USD 1.5 billion iPhones in India, but less than USD 0.5 billion of that amount is produced locally. Compared to the USD 220 billion iPhone Apple produced in China in 2018-2019.
Apple has produced several older iPhones in India, such as the iPhone 7 and iPhone 8, through Winston and Foxconn. Recently they also started producing iPhone XR in India.