In addition to India, Apple has also begun to diversify part of its iPad manufacturing to Vietnam
According to some sources, it could start producing its tablets in India as early as this year
However, it would have to use one of its local allies to start its operations, instead of relying on companies originating from China.
The separation between China and some of the brands that most relied on the Asian giant for the production of their portfolio continues. According to ., Apple and other brands are very interested in a new incentive program that is being discussed within the Indian government. His intention would be to increase the value of the incentives that will be given to companies to move a more significant part of their manufacturing to the emerging nation.
This incentive program would be a continuation of a series of incentives, valued at $ 6.7 billion, that Prime Minister Narendra Mori launched in 2020. At the time, Apple benefited from the program through its allies from manufacture. Now, the government of India is preparing a continuation of this plan, focused on the production of tablets, laptops and servers. It is planned to have a budget of 964 million dollars in five years.
Three sources close to the negotiations confirmed to . the second part of the incentive plan. They also pointed out that Apple and other companies that could benefit from the stimuli are pushing to almost triple the final sum. Tim Cook’s tech intent would be to move a more significant portion of its iPad manufacturing to India. It should be noted that a large part of these production operations are now carried out in China.
Follow the break between Apple and China
It is not new news that the technology responsible for the iPhone is turning to India to move part of its manufacturing out of China. According to Yahoo Finance, since the middle of last year Apple decided to invest more than a billion dollars to move a good part of its operations to the Southeast Asian country. The project responded, of course, to the trade war between the United States (USA) and Beijing, as well as the COVID-19 crisis.
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Why will Apple invest more in China?
Why India, instead of any other country? The answer is relatively simple. According to Financial Express, the Asian nation is rapidly becoming an international leader in advanced manufacturing. This would respond, according to various agents, to the investment that was made in areas such as education, medicine, and soft and hard skills in recent years. A situation that would certainly be attractive to Apple as it seeks to diversify.
However, some experts fear that Tim Cook’s tech could never be 100 percent independent of China. According to Ars Technica, the production and supply chain that Apple has already established in the world’s second-largest economy is too difficult to emulate. The gap is so large between Beijing and other nations, such as the US, Vietnam and India, that diversification in their manufacturing could affect their competitiveness.
Other companies turn to see India
Beyond its appeal as a country that can compete with China in manufacturing, other brands outside of Apple have already seen India as a golden opportunity for other projects. A great example is the investment plan that Amazon announced in this Asian country at the beginning of last year. The idea was to spend more than a billion dollars on small businesses in the region. And thus, help empower them as an important segment on your platform in terms of sales.
Also in the financial environment (an industry in which Apple has already shown interest before) there have been several cases of development in India. WhatsApp, for example, launched an advanced services project for its users in the Asian country. The idea is to offer people from credits and insurance to pension plans directly from the app. This, with the intention of promoting greater inclusion among consumers regardless of the social context.