Apple supplier is considering the transfer of six production lines to India

Apple WWDC 2020`
Source: Mashable

India has been enacting policies and laws that will force manufacturers to produce their devices in India. The plan of the Indian government seems to be working because it has the market. The Indian smartphone market is very technical. Although it is the second-largest in the world, it is not for products from Apple due to the price factor. However, as Apple adjusts its pricing system globally, it sees a need to do something in the Indian market. In the Indian market, imported products incur serious bills. This makes them more expensive and harder to sell.

Apple Italy

According to recent reports out of India, Apple’s supplier is studying the transfer of six production lines to the Indian market. If this happens, then we will see some more “Made in India” Apple products. Furthermore, information from the Indian Minister of Science and Technology says that India is expected to produce 11.5 trillion rupees ($153.3 billion) in mobile phones and related parts in the next five years (2025). According to him, nearly 40 foreign companies intend to increase their “bets” on Indian smartphone components.

There are reports that 22 suppliers will invest 110 billion rupees ($1.4 billion) to set up mobile phone manufacturing departments in India. These include Foxconn, Wistron, Pegatron, and others from Samsung and Apple’s smartphone product manufacturing line.

India has laws to support “Made in India” products

In order to support the development of local manufacturing, India launched the Atmanirbhar Abhiyan plan in May this year. In addition to supporting the development of local manufacturers in India, this program also intends to attract more international giants to transfer their production lines to India. According to India’s idea, the country will provide up to 6% incentives for the incremental sales of locally produced goods in the next five years. It also promises to give 25% incentives for the production of electronic components, semiconductors, and other parts.

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India is the world’s second-largest smartphone market. However, due to the epidemic, India’s smartphone shipments in Q2 2020 dropped by 48% year-on-year. This is the largest in the country’s smartphone market in the past 10 years (since 2010). According to information from Canalys, India’s smartphone shipments in the second quarter were only 17.3 million units. This is far lower than the performance of the second quarter of last year (33 million units). In the first quarter of this year, the Indian smartphone market recorded about 33.5 million units. 

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