Apple Wants To Exit China; 20% iPhone Production Will Be Shifted To India (Worth $40 billion!)
We already know that iPhone maker Apple has been planning to move its manufacturing plants from China to India owing to the Coronavirus pandemic unleashed on the world by China.
And as per fresh reports coming in, Apple is planning to shift one-fifth of its total production capacity from China to India.
Find out all the details about Apple’s plan to move its manufacturing units to India right here!
Apple Plans To Shift 20% Of Production Capacity From China To India
Reports have revealed that Apple’s senior executives and the Indian government’s top-ranking officials have been discussing the plan of shifting the company’s manufacturing units from China to India. As much as one-fifth of the production capacity will be moved to India by Apple.
As of now, the company wants to boost its revenue to $40 billion in the next five years.
The official who is close to the development, revealed, “We expect Apple to produce up to $40 billion worth of smartphones, mostly for exports through its contract manufacturers Wistron and Foxconn, availing the benefits under the production-linked incentive (PLI) scheme.”
The Coronavirus disease has lead to multiple companies moving their production units out of China. Japan has also announced a monetary support of $2.2 billion to shift its businesses and production out of China. As per reports, the US is also expected to follow suit.
Apple Wants To Become India’s Largest Explorer
The government has a production-linked incentive (PLI) scheme wherein three schemes with incentives of Rs 48,000 crore were notified to boost the mobile phone manufacturing in the country. Also, the dominant PLI scheme has a share of as much as Rs. 41000 crore and its SOPS will be spread over three years.
Apple has high plans for the future and if these plans turn out to be successful, the company will be India’s largest exporter.
However, there are a few issues in the PLI scheme that will need to be resolved. As per the source, “For instance, valuing the entire plant and machinery already in use in its plants across China and other places at 40% of that value and the extent of the business information sought under the scheme are some of the irritants.”
As of now, Apple sells approximately $1.5 billion worth of phones in India, and out of this, $0.5 billion is locally manufactured, here in India.