German media: It is difficult for India to replace China as Apple's production base.
Apple Inc., the tech giant, plans to significantly increase production in India.
Leika Chakraborty, a senior economist at the National Institute of Public Finance and Policy in India, believes that moving more iPhone production to India presents both significant opportunities and potential challenges. She told DW, "A closer analysis reveals potential challenges, including competition with China, rigidity in the labor market, and vulnerabilities in the supply chain."
Chakraborty emphasized that producing iPhones in India costs 5% to 10% more due to higher component costs and relatively lower factory efficiency.
"Moreover, the fiscal impact of this investment deserves careful consideration, especially regarding taxation, infrastructure investment, and potential subsidies," said Chakraborty. Therefore, she believes that "formulating reasonable policy guidelines is crucial to minimizing risks and maximizing benefits."
It is estimated that currently 20% of iPhones globally are produced in India. According to Bloomberg, during the 12 months ending March 2025, Apple produced iPhones worth $22 billion in India, a 60% increase from the previous year.
This American company plans to produce over 60 million iPhones annually in India by 2026, doubling its current output and significantly enhancing India's electronics manufacturing industry.
In India, iPhones are primarily assembled by three contract manufacturers - Foxconn, Pegatron, and a subsidiary of Tata Group (formerly Wistron). Foxconn, being the largest among them, is responsible for most of India's iPhone production.
The Indian government recently announced a new policy aimed at strengthening the country's electronic manufacturing ecosystem.
Shrijay Sethi, founder of consulting firm LegalWiz, told DW that to become a truly independent manufacturing hub for Apple, India must make substantial investments in infrastructure, workforce skills, and technology.
Sethi believes that transferring most production from China to India may face obstacles in terms of technology and expertise transfer.
He emphasized, "Given the current geopolitical situation, expecting China's expertise, skills, and production equipment to be transferred at the required speed is overly naive."
He considers, "Considering economic factors, skilled labor, and supply chain reconstruction, the final outcome remains uncertain."
Nikul Shah, co-founder and CEO of IndieSemic, which focuses on semiconductors and embedded systems, believes that India has the capability to meet all future requirements for iPhones, but its ecosystem needs further improvement.
He emphasized that the increase in iPhone production provides India with an opportunity to elevate its position in the global electronics manufacturing sector, "but success depends on whether it can address long-standing infrastructure and policy constraints that limit its manufacturing competitiveness."
Source: DW
Original article: https://www.toutiao.com/article/1832454146399498/
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