Company working on massive plan to move production to India

May 12, 2020 04:31 GMT  ·  By

Apple is planning massive production changes that would eventually have the company make more iPhones in India, thus reducing reliance on its Chinese operations.

The Cupertino-based tech giant’s intention to be less dependent on Chinese manufacturing isn’t new, but now it looks like changes in this regard are gaining traction, with Apple senior executives meeting with government officials in India to discuss local manufacturing plans.

More specifically, The Indian Economic Times notes that Apple wants to produce up to $40 billion worth of smartphones in India with help from local partners like Wistron and Foxconn, both of which are already manufacturing the iPhone in the country.

iPhone production in the US

This could be a huge blow for China but a major win for India. Right now, $220 billion worth of products are manufactured in China, while in India, this number drops to just $0.5 billion. So the increase would be massive, which comes with a series of benefits not only for Apple but also for India too.

At the same time, Apple has also been pressured to move at least part of the production to the United States. United States President Donald Trump has repeatedly asked the Cupertino-based tech giant to make the iPhone in the domestic market, including in early 2019 when Apple experienced a stock drop.

“Apple is a great company. Look, I have to worry about our country. Don't forget, Apple makes the product in China. I told Tim Cook, who's a friend of mine who I like a lot, make your product in the United States. Build those big beautiful plants that go on for miles. Build those plants in the United States. I'd like that even better. Apple makes its product in China. China is the biggest beneficiary of Apple ... because they build their product mostly in China,” Trump said.

Apple has so far remained tight-lipped on its plans to move part of the Chinese production to India.