(MENAFN- KNN India)
New Delhi, Nov 25 (KNN) Apple is ramping up its efforts to shift a significant portion of its component manufacturing to India, as it seeks to reduce its dependency on China.
This move comes in response to potential tariff hikes on Chinese imports that were introduced during the trump administration.
These tariffs could considerably increase Apple's costs, leading to higher prices for consumers in the United States, particularly for flagship products like the iPhone.
The tech giant is actively pursuing partnerships with over 40 companies as part of its strategy to diversify its supply chain. Apple is in discussions with Indian electronics manufacturers such as Dixon and Amber, with the aim of sourcing a broader range of components locally.
However, the transition is proving to be a complex process. For instance, it took two years for Aequs Group, an Indian manufacturer, to move to the trial stage for producing MacBook and Apple Watch components.
India's government has been an important ally in Apple's plans, offering local incentives designed to promote electronics manufacturing.
These incentives create an appealing environment for global firms like Apple to invest in the country, aligning with the government's vision to boost domestic manufacturing and create jobs.
While shifting manufacturing from China is a priority, it's not without challenges. Apple has long relied on China for its supply chain, and many Chinese suppliers have shown reluctance to move operations to India.
Geopolitical tensions and regulatory hurdles, including restrictions on Chinese companies like BYD, further complicate the transition. Visa issues for Chinese workers also present additional barriers.
Despite these challenges, Apple is committed to its diversification strategy. As of early 2024, its suppliers have invested $16 billion in shifting production outside China, benefiting countries like India and Vietnam.
This strategic pivot strengthens Apple's position in India's rapidly growing market, securing its future in one of the world's largest emerging economies while navigating a complex global landscape.
(KNN Bureau)
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