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India is set to implement a series of subsidies and tariff reductions designed to lower production costs for Apple and other smartphone manufacturers as part of its broader effort to become a global electronics manufacturing hub (via Bloomberg).

apple-india.jpg

India is proposing $2.7 billion in financial incentives and tariff adjustments targeting the electronics sector, particularly benefiting smartphone makers such as Apple. The measures are intended to bolster the production of critical components like batteries, camera modules, and microprocessors, which are currently largely imported from countries such as China.

Prime Minister Narendra Modi's government previously rolled out several initiatives, including the Production-Linked Incentive (PLI) scheme, which drew major companies like Apple and Samsung to set up or expand their production facilities in India. The focus of the new proposal is more granular, specifically targeting the establishment of a domestic supply chain for components.

Apple has been steadily increasing its production footprint in India. The company began assembling iPhones in India in 2017, initially focusing on older models. More recently, Apple has ramped up its operations, with India-produced iPhones now accounting for roughly 15% of the company's global output. Notably, the iPhone 16 saw its production in India commence just weeks after its global launch.

The proposed subsidies could further accelerate Apple's plans to localize production, potentially enabling simultaneous launches and production of future models, such as the iPhone 17, in both India and China. A final decision on the measures is expected to be announced during the upcoming federal budget in February.

Article Link: India Plans Subsidies to Boost Apple's Production Efforts
 
Most of us are wondering how, and if, the expected tariffs will impact Apple. I haven't heard anything about tariffs targeting India. Hopefully, such actions will further help Apple diversify its manufacturing footprint away from China.
 
Moving to India is a smart move for electronics manufacturers. The government’s $2.7 billion incentives and tariff adjustments aim to build a strong local supply chain, reducing reliance on imports. Apple’s growing production in India shows the success of these initiatives, offering cost efficiency and risk diversification.

Businesses, and Apple in particular, acting now can secure a strong position in a fast expanding market.
 
This one-minute advertisement by the Government of India for their "Make in India" initiative was very popular a decade ago:

 
Most of us are wondering how, and if, the expected tariffs will impact Apple. I haven't heard anything about tariffs targeting India. Hopefully, such actions will further help Apple diversify its manufacturing footprint away from China.
Trump's proposed tariffs of 10% to 20% apply to ALL imports, not just those from China...


Trump has proposed adding a tariff of 10% to 20% on all imports, with significantly higher levies on imports from China.


while the additional tariffs apply to China, Canada, and Mexico, but mostly China.


While Apple moving more production to India from China will help some, it will not eliminate all tariffs if they become reality.
 
The most valuable company in the world should get exactly zero in subsidies, anywhere
Actually, India also needs Apple to manufacture basic phone components in India for transfer of Technology and create bigger employment. It's actually like a reverse bribe where govt pays you to set up a shop. But the benefits are mutual.
 
Good to see production expanding in India. Good for Apple to expand manufacturing outside China. Also it is beneficial for Indian customers as it reduces import duty and brings down the price of iPhones. Expecting Apple to manufacture other Apple devices in the country.
Expecting all models of the 17 series to be also made in India except the new iPhone Air.
 
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Some countries lower the barriers of entry to create jobs and bolster the economy to the tune of ~$2.7B while others do the opposite and ask for $1B+ (which wasn’t deemed enough even as per last news) just to get a seat at the table.

Waiting to see how this will all evolve.
 
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