Making iPhones in India may be about to get cheaper for Apple

Manufacturing iPhones V India is a key element Apple efforts to reduce production dependence on Chinaand a new report suggests the company may be able to cut costs to do so.

The Indian government is reportedly planning to offer at least $2.7 billion to support local manufacturing, which could reduce the cost of producing iPhones in the country…

Apple ramps up iPhone production in India

Apple needs to reduce its dependence on China as a manufacturing hub. has been clear for many yearsand pandemic took the risks home concentration of up to 80% of global iPhone production in one plant.

Apple has long chosen India as its primary second manufacturing home. For some time now we have been hearing ambitious messages – that Half of all iPhones could be made in India by 2027 – although actual progress has been slower.

Last year the situation intensified significantly. Bloomberg reported back in April that approximately every seventh iPhone were manufactured in India, but production of the flagship models always lagged significantly due to the advanced manufacturing processes required. The situation changed with the release of the iPhone 16, which is manufactured in India. starts within a few weeks of launch.

New government support

Two ways in which the Indian government has encouraged local smartphone manufacturing are through tax subsidies as well as import tariff breaks on components. Bloomberg reports that both initiatives are set to receive support.

India’s government is considering new subsidies for electronic component makers and lower import tariffs to help boost local production, especially of smartphones made by companies such as Apple Inc.

The Ministry of Electronics and Information Technology has proposed providing at least 230 billion rupees ($2.7 billion) in support to manufacturers of components such as batteries and camera parts, according to people familiar with the matter, who asked not to be identified. as discussions are private.

The ministry also recommended reducing tariffs on some electronic components, an industry demand that will help reduce production costs, one of the sources said.

The decision is expected to be announced in next month’s Budget.

Apple is believed to be planning to start production of the iPhone 17 simultaneously in China and India.

Photo by the author Jainam Sheth on Unsplash