The iPad business has been a doing wonders for Apple because quite frankly there are almost no rivals to what Apple has to offer. We now hear that Apple plans to manufacture iPads in India after the Indian Government has shown interest in providing incentives to companies for manufacturing electronic products in India and boost jobs.
iPads Likely to be Manufactured in India
Indian Government under Narendra Modi’s leadership had launched a $6.7 billion plan to boost smartphone manufacturing in India, with an aim to increase the electronics manufacturing in India and increase job opportunities.
After the global pandemic had crippled businesses across the globe for a great part of 2020, Apple had reportedly bumped up iPhones production in India to reduce dependence on its Chinese manufacturing facilities.
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The Indian Government is now underway to expand and promote its existing plan by including indigenous production of tablets, laptops and servers. Three sources working closely with the plan had earlier told Reuters. According to the new performance-linked incentive (PLI) scheme, the Indian Government plans to offer cash-backs to manufacturers for exports. The budget amounts to $964.5 million (70 billion rupees) over a tenure of 5 years. The scheme goes live by the end of February.
Apple along with some other manufacturers is trying to push more inflating the budget to 200 billion rupees as India currently lacks the scale and supply chain for making IT products and competes with duty-free imports of tech products.
Make in India
Apple currently manufactures a big consignment of its iPads in China. Apple however intends to diversify from being dependant on China-based facilities as US-China trade war sees a new high post-Corona virus crisis.
Indian Government on the other hand is trying to deflect businesses from Chinese companies and is encouraging Apple to get iPads assembled by existing contract manufacturers already present in India.
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Apple currently has 3 manufacturers based out of India — Foxconn, Wistron and Pegatron. Apple had started assembling iPhones in 2017 in India. Foxconn and Wistron have been assembling iPhones in India for Apple and have gradually ramped up production. Pegatron has also set up its base in India last year. Foxconn, the Taiwanese manufacturer, plans to pool in $1 billion to expand its facility in Southern India with an intent to produce iPhones.
Should we expects price cuts on India produced iPads soon?