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Apple’s Top Three Suppliers Commit Rs 6,500 Cr For Local Manufacturing To Boost iPhone Production

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The top three vendors for Apple have committed to invest a total of Rs 6,5000 Crore or $900 million in India over the next five years to bolster local production. The report comes from Reuters who suggest the production-linked incentive plan comes from two sources familiar with the matter. 

Apple’s Top Three Suppliers Commit Rs 6,500 Cr For Local Manufacturing To Boost iPhone Production © Wistron India

The three vendors include Foxconn, Wistron and Pegatron, all three of whom plan to make investments in the country under the scheme, according to Reuters sources. The new scheme offers cash incentive on any increase in sales of locally manufactured smartphones over the next five years. This scheme has been set up to make India an export manufacturing hub for technology products such as smartphones and perhaps other products as well. The three vendors i.e. Foxconn, Pegatron and Wistron manufacture select devices for other companies as well apart from Apple. 

Wistron in India only assembles iPhones at the moment and has, in fact, assembled approximately 2 lakh iPhone SE in 2020 per month in India. The company is planning to increase the production up to 400,000 a month by the end of the year and plans to export the device to other countries as well. 

Apple’s Top Three Suppliers Commit Rs 6,500 Cr For Local Manufacturing To Boost iPhone Production © MensXP/Akshay Bhalla

Foxconn already assembles smartphones for Xiaomi in India and is now planning to use the PLI plan to boost iPhone production in the country as well according to a different source. The move comes after a heated trade war between China and the United States which will enable companies like Apple to diversify their supply chain and not solely rely on China. Under the new scheme, it is predicted that the three companies may generate 10,000 jobs as well. 

"India is key to Apple's global ambitions as it expands beyond China," 

said Tarun Pathak, an associate director at tech researcher Counterpoint. 

"It offers a strategic market to them where skilled labour is cheaper as compared to other manufacturing destinations, the size of the internal market is huge and the export potential is enormous.”

Local manufacturing will also help Apple save costly import duties on some of its products and enable the company to capture a higher share of the premium smartphone category in the near future. 

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Apple launched its own online store last week and is also making their retail presence felt by building its first Apple Store in Mumbai. If you want to know more about all the benefits you can get by buying directly from Apple’s online store, you can read all about it here

Source: Reuters

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