Producing the iPhone in India could be cheaper for Apple.

Apple's production of iPhones in India is seen as a key element of its efforts to reduce its manufacturing dependency on China. According to recent reports, the company is indicating that it can reduce costs associated with this effort.

The Indian government plans to provide at least 27 billion dollars in support for local manufacturing, which could lead to lower iPhone production costs in the country.

Apple's Expansion of iPhone Production in India

The need for Apple to reduce its reliance on China as a manufacturing hub has been clear for a long time. The pandemic highlighted the risk of concentrating 80% of iPhone production at a single factory in a single country.

For years, Apple has targeted India as its second-largest manufacturing base after China. We have already heard cautious reports over several years - that more than half of all iPhones could be made in India by 2027. However, actual progress was slower.

Last year saw significant progress. Bloomberg reported in April that about one-seventh of iPhones were manufactured in India. Production of the latest models has always been delayed due to necessary advanced manufacturing processes. However, starting with iPhone 16, production began in India within a few weeks after launch.

New Government Support

One of two ways the Indian government plans to promote local smartphone manufacturing is by providing tax breaks. It also offers benefits on import duties for components. Bloomberg reported that these two initial incentives are expected to be strengthened soon.

The Indian government is considering new support for electronic component manufacturers, particularly to help with smartphone production at companies like Apple Inc.

According to someone who spoke, the Ministry of Electronics and Information Technology plans to provide support of up to 23 billion rupees (approximately 2.7 billion dollars) to component manufacturers such as those making batteries and camera components. This discussion is confidential, so they requested that it not be officially identified.

The ministry recommended reducing tariffs on some electronic components, which is in response to industry requirements and could help lower production costs. One person said this.

A decision is expected to be announced when the budget for next month is presented.

It is reported that Ireland plans to start producing iPhone 17 simultaneously with China and India.

Photo by Jainam Sheth on Unsplash