Apple may relocate some iPad manufacturing from China to India

Apple has talked to Indian officials about locating some iPad manufacturing in the country as U.S.-Chinese relations sour and China’s COVID crackdowns snarl supply chains, reports CNBC.

The tech giant already manufactures older iPhones, and some iPhone 14s, in India. CNBC says the biggest barrier now to manufacturing some iPads there is a lack of local manufacturing expertise.

On Nov. 11, Reuters reported that Apple supplier Foxconn plans to quadruple the workforce at its iPhone factory in India over two years. The article said this points to “a production adjustment as it faces disruptions in China.”

Regarding India, Apple is using the country’s PLI scheme to make the iPhone 13 locally and support future aggressive pricing, reports Canalys. The PLI program launched two years ago, offers a cash incentive for three to five years on the incremental sale of goods made in India over the determined base-year sales. Additionally, the identified beneficiaries are required to commit to a certain minimum investment in India.