Apple has recently decided to assemble iPads in India and is now seeking incentives for the same. As per the news, Apple is going to participate in a new scheme by the Indian government to increase the country’s IT exports. Besides that, the company is even planning to bring iPads manufacturing to India.
Currently, Apple has three manufacturing partners in India: Foxconn, Wistron, and Pegatron. Out of these three partners, one will be assigned to assemble the iPads, though it is not clear which partner will get the opportunity. However, Apple is seeking more incentives to assemble iPads and other devices in the country.
Apple has been trying to decrease its contacts with the China manufacturers due to the USA-China trade war and is looking for other countries to manufacture its devices.
Recently, India launched a $6.7 Billion plan for smartphone companies to boost India’s sales and exports. The plan even included the promotion of electronics, manufacturing, and providing more jobs to the youngsters. Almost all the smartphone companies, including Apple, took part in the scheme through its contract manufacturers.
However, the Indian government is now planning to make another similar plan for computer devices, laptops, servers, tablets, etc. This new scheme, known as the performance-linked incentive or PLI, will offer the manufacturers a budget of 70 billion rupees for five years. The new plan will land in the market by the end of February.
But, it seems like Apple is not happy with the budget. Apple Inc, along with some other companies, is demanding an increase in the incentives. It is specifically stating to triple the budget, around 200 billion rupees before the plan is complete. Apple specifies a reason that India doesn’t have any prior experience in Manufacturing duty-free imports.
Meanwhile, Delhi plans to launch another PLI scheme of 50 billion rupees for five years for devices such as smartwatches. This particular plan will come into effect within 2 months. The main concern here is whether the Indian government will increase the budget or will India have to wait some more time for the iPads. When asked about comments, Apple declined the topic.
Apple has already started shifting its manufacturing partners from China to other countries. The top iPad assembling partners are now Foxconn, situated in Vietnam. Foxconn is now responsible for assembling and manufacturing iPads and MacBook for the company. There are other iPad assembling partners, too, like Compal Electronics and BYD Electronic International. However, there are chances that BYD Electronic International won’t remain a partner for long, as it is a Chinese-based company.
Besides that, there are talks about Apple shifting its iPad manufacturing in India. The company had already started manufacturing iPhones in India, back in 2017, with Cupertino’s help. All three contract manufacturers have their bases in India for Apple and will soon release some good news. Foxconn is going to expand the base to Southern India and assemble iPhones there.
All three contract manufacturers have invested around 900 million dollars in producing iPhones in India. If the government increases the incentives, we would be able to see iPads manufacturing in the country soon.
Image Source: TheVerge