iPhone maker Apple has run into obstacles in India as it tries to ramp up production, the Financial Times reports.
The tech giant had already sent product designers and engineers from California and China to train local people and set up production in South India.
While Apple has been producing low-end iPhones in India since 2017, last September Indian suppliers began making flagship models within weeks of launch in China, where virtually all of Apple’s hardware is made. But the challenges remain many, says the report.
“In a case factory in Hosur run by Tata, 50% of the components produced are fit to be shipped to Foxconn, Apple’s assembly partner, while Apple’s goal is zero defects. One person involved in operations Apple said the process of expanding into India is slow in part due to logistics, tariffs and infrastructure.”
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Apple’s diversification into Southeast Asia has been smoother thanks to the Regional Comprehensive Economic Partnership, a free trade agreement.
While Apple has been churning out low-end iPhones in India since 2017, last September, Indian vendors began manufacturing flagship models within weeks of launching in China.
The company, Reuters notes in its report citing the FT report, has been keen to move production away from China, which until recently had strict COVID-19-related restrictions. Geopolitical tensions between Beijing and Washington are also at their peak right now.
Last month, Union Trade Minister Piyush Goyal stated that Apple wanted to increase production in India by up to 25%.
“They already make 5-6% of their products in India. If I’m not mistaken, they are targeting 25%,” Goyal told a meeting with tech companies in Gujarat.
“They have launched the latest models made in India,” he added.
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