Apple may start iPad production in India, AirPod charging cases at Jabil facility in Pune, says report

Apple in India: Tech giant Apple may start manufacturing of its iPads in India amid the country's production-linked incentive (PLI) scheme, Moneycontrol reported, citing sources. This development comes after previous attempts to partner with China-based BYD fell through due to political tensions between the two Asian neighbours, it added.

“BYD was almost ready to set up the factory for iPad in India, but clearance was a problem, and the situation has changed significantly now. We are now trying to help (Apple) expand further to grow for the next two to three years. There will be substantial growth,” a senior government official told Moneycontrol.

More on Cards Besides iPods

Apart from iPads, the government is also looking to encourage Apple to manufacture its laptops and desktops in India, with the official saying there are "big plans" over the next two to three years.

The tech giant has recently ramped up production of iPhones in India and plans to increase production of parts for the wireless charging cases for its AirPods in the country as well. These are already being exported to China and Vietnam.

For the production increase, it is looking to partner with Jabil Inc. in Pune or Foxconn, the sources added. Further, the plan also includes producing true wireless stereo (TWS) AirPods from next year, it report added.

Apple, Foxconn and Jabil did not respond to queries, the report said. Livemint could not independently verify the report.

India Aims To Be Global Hub

In May, Mint reported that Apple aims to increase its production base in India, with target of manufacturing a quarter of all its iPhones in the country over the next three to four years. The Cupertino-headquartered company is building a network of local vendors instead of sourcing inputs from Chinese suppliers.

Sources had told Mint that Apple has already begun work on building the supply chains even as a majority of its production will be undertaken by Foxconn and Tata Electronics that will scale up their manufacturing capacities as well.

“India is an important market for them. Till December 2023, they are already doing 14% of their total iPhone production from India that is being supplied locally and for exports. They're now planning to raise the levels to 24-25% by the end of 2027 or 2028,” one of the people said, asking not to be named as the discussions were private.

Notably, India exported 20 per cent of domestically made smartphones in 2022 — the highest ever, data from Counterpoint Research showed. Further, sector watchers note it is aiming to be a global manufacturing and export hub as well, with the PLI scheme and other policies.