Apple considers reviving plans to manufacture iPads in India
What's the story
Apple is reconsidering its plans to manufacture iPads in India, encouraged by the Indian government's efforts to attract more supply chains, according to a Moneycontrol report citing people aware of the development. The tech giant is expected to start looking for a manufacturing partner soon after a previous unsuccessful collaboration with China's BYD due to geopolitical concerns and government restrictions.
Growth plans
Government aids Apple's expansion in India
A senior government official tod Moneycontrol that BYD was close to setting up an iPad factory in India, but clearance issues stalled the process. The situation has now changed significantly, with the government aiming to help Apple expand over the next two to three years. "There will be substantial growth," said the official. The Indian government also expressed interest in having Apple manufacture laptops and desktops in the country in future.
Production plans
Apple to boost AirPods production in India
Apple plans to start production of TWS (true wireless stereo), AirPods, in India from early next year. The company is already making parts of wireless charging cases for AirPods which are being exported to China and Vietnam. A source told Moneycontrol that Apple started trial production of parts of wireless charging cases with Jabil in Pune, and could also do the same with Foxconn.
Production boost
Apple's local production of iPhones to increase
Apple has been actively increasing local production of its flagship iPhone devices in India through Foxconn and Tata Electronics. The tech giant aims to expand its production base in the country, targeting to manufacture 25% of all its iPhones in India over the next 3-4 years, up from 14% of their total iPhone production. This effort includes building a network of local vendors to reduce dependence on Chinese suppliers.
Manufacturing expansion
Apple's AirPods to be second product made in India
AirPods will be the second product category after the iPhone to be manufactured in India. Luxshare Precision Industry Co. was initially expected to produce AirPods in India, but due to political tensions between India and China, the company chose to invest in Vietnam instead. "Once Apple approves it after quality testing, Jabil will ramp up commercial production of wireless charging case parts for AirPods," a source told Moneycontrol.
Strategic shift
Apple's future plans for India
Apple has shared "big plans" for India over the next 2-3 years with the government. The tech giant aims to build an alternate supply chain in the country, which will attract more partners to India and deepen capabilities of existing ones. This strategic shift comes at a time when Apple is significantly enhancing its iPhone manufacturing capabilities and making efforts to increase production of devices.