Apple warns local production will take a hit if India mandates EU-like universal charging port: report

Apple's India production might take a hit 

• According to the Reuters report, India wants to implement the European Union rule which will require smartphones to have a universal USB-C charging port.
• To this extent, the government has been in talks with manufacturers about introducing the requirement by June 2025 in the country.
• This is six months after the deadline in the EU.
• Apparently, all manufacturers, including Samsung have agreed to India's plan but Apple is trying to push back.
• Apple traditionally offered lightning connector port for iPhones but the EU mandate changed that this year.
• EU estimates that a single charger solution would save about $271 million for consumers, and so India wants to adopt this move and reduce e-waste and help users.

According to Reuters, in a closed-door meeting on November 28th, chaired by the IT ministry, Apple asked the officials to exempt existing iPhone models from the rules. The company says that this will hit the production targets set under India's production-linked incentive (PLI) scheme.

For those unaware, PLI is a scheme from the government of India which offers electronic manufacturers in India incentives for fresh investments and incremental phone sales each year. Apple suppliers like Foxconn leverage and use this scheme extensively to expand iPhone production in India. 

"If the regulation is implemented on earlier models of mobile phones, Apple will not be able to meet the PLI targets," the minutes quoted Apple's regulatory and product compliance executives as saying while opposing the rules. Apple didn't explain the production impact during the meeting. The IT ministry decided to review the request and come to a decision, as per two people familiar with the discussion. 

The design of old iPhones can't be changed

Only the iPhone 15 has the new universal charging port. In this regard, Apple told the Indian officials during the meeting that the "design of the earlier products cannot be changed," as per the document.

In a price-sensitive market like India, a large section of consumers prefer to buy older iPhone models as they tend to become cheaper after the new generation launch. With the latest push by the government for a common charger on older models too, this would hit Apple's target, as per Prabhu Ram, head of the Industry Intelligence Group at CyberMedia Research. "Apple's fortunes in India have primarily been tied to older generation iPhones," he said.

Apple clarified that it can comply with the timeline if existing models are exempted from the rule but if India is firm on the change for older models too, the company would apparently need 18 months beyond 2024.