Apple Reportedly Seeking to Move Significantly More Production From China to India

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In a bid to reduce its reliance on China as a base for operations, Apple could be planning to produce up to $40 billion worth of smartphones in India through contract manufacturers Wistron and Foxconn, reports The Indian Economic Times.

Several meetings between Apple's senior executives and top ranking government officials over the last few months have paved the way for the iPhone maker examining the possibility of shifting nearly a fifth of its production capacity from China to India and scaling up its local manufacturing revenues, through its contract manufacturers, to around $40 billion over the next five years, say officials familiar with the matter.


A senior government official told ET the decision is being linked to India's production-linked incentive (PLI) scheme, which was introduced to boost local manufacturing of electrical products, particularly smartphones.
 

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Freight arriving by container ship with a China origin containing goods from US firms including Apple and Dell are being held up as Indian ports refuse to clear shipments.

While the Indian government has reportedly not issued any notices preventing or delaying the importing of technology items, customs officers at one or more major ports in the region are denying access for shipments. Among the companies said to be affected are Apple, Dell, Cisco, and Ford.

Apple has previously been working to increase its production within India, but part of the process includes shipping components from China.

 

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Apple is "battling to free stuck shipments" at the Indian port of Chennai after the country ramped up scrutiny of imports from China following rising tensions between the two nations.

Reuters reports that customs officers at the Southern Indian port have held back more than 150 shipments of smartphones and electronic parts from China, which has disrupted operations at plants owned by Apple supplier F

 

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One source told Reuters that Apple has been pushing Foxconn and other suppliers to move production outside of China. The move will ultimately help the company in diversifying its supply chain in an effort to reduce its reliance on Chinese manufacturing amidst the ongoing trade war between China and the United States.

Foxconn's investment is being made in the Sriperumbudur plant, which is responsible for producing some iPhone XR models. The improvements, which will take place over three years, include the addition of 6,000 new jobs and the production of other iPhone models in the plant.

 

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