For almost a year now Apple points to minimize its dependence on the Chinese production chain, in order to avoid being damaged by the crossfire between the United States and China. Although the pandemic has significantly shifted the focus of media attention from the problem, we remember that between the two nations there is still a close trade war fought with tariffs.
Apple's next move, according to what has been learned since The Indian Economic Times could be that of strengthen the production chain currently present on Indian soil, in order to transfer you up to a fifth of the Chinese one. According to rumors, it appears that the Cupertino house has entered into several negotiations with local authorities to discuss an investment plan to $ 40 billion over the next 5 years.
As we all know, Apple is already present in India thanks to its partner Foxconn, responsible for the production of some specific models, such as iPhone XR. Currently this allows her to be able to offer her smartphones on the Indian market at better prices than she could have done in the past, as the government subsidies of the Make program in India now guarantee important tax advantages.
The source claims that at the moment there is still no agreement to kick off the transition, however the two sides are working towards meeting each other and to find an effective solution for both. Among the details that emerged there is one of the clauses to be respected in order to obtain the mentioned tax breaks.
This is the commitment to produce, in the space of 5 years, a volume of smartphones that has a total value of at least 10 billion dollars and to respect certain annual objectives. This milestone should not be difficult to achieve, as the Chinese iPhone supply chain has produced – in the period 2018-2019 – smartphones for about 220 billion dollars.
The new scenario that lies ahead is therefore very different, in that the models that will be made in India will not be destined for the internal market, but for the global one. In short, it seems that Apple is working hard so that a production chain can soon be created that can no longer depend on the Chinese one; just a few days ago we saw how one of the partners of the Cupertino house is already working in this direction.