Apple to shift 20 percent of its production capacity from China to India: report

The move is said to make Apple India's largest exporter.

  • Apple is said to make India its new manufacturing base, mainly for export
  • It’s believed to make handsets worth $40 billion over the next five years in India
  • The overall Indian mobile phone exports market is likely to surpass $100 billion by 2025

Apple is reportedly planning to scale up its manufacturing facility in India, but for exports. The Cupertino-based firm is planning to move nearly a fifth of the production capacity from China to India, as per a report by the Economic Times. If that happens, Apple is believed to the largest exporter in the country and its manufacturing revenue is likely to soar as much as $40 billion over the next five years. The move comes after several meetings between Apple’s senior executives and top-ranking government officials over the last few months, added the report.

“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,” a senior government official told ET. There is no official comment from Apple yet; however, sources close to the company’s plans said that there are some problems with exports some of the clauses of government’s ambitious PLI scheme – recently announced to incentivise local handset manufacturing.

“For instance, valuing the entire plant and machinery already in use in its plants across China and other places at 40% of that value and the extent of the business information sought under the scheme are some of the irritants,” one of the sources who are aware of the company’s plans was quoted as saying in the report. The government, which plans to bring hi-tech manufacturing to India, is likely addressing these concerns. “India is looking for a bigger slice of the global exports pie,” added another senior government official.

The Indian official believes that the overall Indian mobile phone exports market will be whopping $100 billion by 2025. The estimate is mind-boggling considering the current $3 billion worth smartphone exports out of India. Apple already produces some iPhone XR units in India via Foxconn.