Apple is reportedly set to to shift 20 percent of its production capacity from China to India in the near future. According to Economic Times report this week, the Cupertino-based giant has been in talks with the country’s government, looking to rely on Foxconn’s existing manufacturing set up and looking to invest further to shore up its production unit in India over the coming years.
Apple will use this upcoming production setup to move its export base from China to india, which caters to 20 percent of the company’s overall production outlay. Reports suggest top models like the iPhone XR are already being assembled in India, using Wistron and Foxconn’s existing capability. But it’s fair to say the Indian government will be excited by these development, especially since Apple sees India as their alternative to a largely established Chinese market.
Apple has been looking to make inroads in India over the past few years, which also includes Tim Cook, CEO, Apple visiting the country to talk with higher authorities, including PM Modi. The company has been seeking short-term tax breaks and exception to utilise 30 percent of local materials for its assembling process. But this is the first time when production might be given a serious thought, especially since the pandemic has caused major chages to strategy of countries across the globe.
Apple is also setting up its first retail store in the country, which is going to open in Mumbai sometime in 2021 but it remains to be seen if the company still plans on meeting its initial launch target, especially with construction in the city put on hold amid coronavirus. Apple’s been most assembling its devices in the country as of now but moving production is a different ball game altogether and compared to China, it’s fair to say Indias’ skilled workforce needs rigorous training to come up to speed the company demands. All in all, it’ll be intriguing to see how Apple adjusts to the demographics of the country and use its workforce for its operations.