Apple Could Be Exploring Moving Some iPad Production to India

The government is exploring options to bring some of Apple's iPad production to the country from China, CNBC reported on Monday, citing two sources close to the Indian government.

Apple is holding ongoing discussions with officials, according to the report.

The iPhone maker did not immediately respond to a Reuters request for comment.

Last month, the Economic Times business daily reported that the Tata Group was in talks to buy Wistron's only manufacturing facility in India for up to Rs. 5,000 crore, citing people familiar with the discussions.

Tata Electronics, a unit of salt-to-software conglomerate Tata Group, already supplies components to Apple from its Hosur unit in Tamil Nadu, which neighbours Karnataka, according to the report.

India and other countries such as Mexico and Vietnam are increasingly turning important to contract manufacturers supplying to American brands amid COVID-related lockdowns in China and simmering tensions between Washington and Beijing.

Bloomberg had reported in September that Tata was in talks with Wistron to establish a joint venture to assemble iPhones in India.

Currently, iPhones are assembled in India by at least three of Apple's global suppliers – Wistron in Karnataka, as well as Foxconn and Pegatron in Tamil Nadu.

In November, Apple's Taiwanese contract manufacturer Pegatron reportedly began assembling the new iPhone 14 in India. Both Foxconn and Pegatron produce Apple's latest iPhone 14 handset in India, the former began assembling the smartphone in September.

Cupertino, California-headquartered Apple has bet big on India since it began iPhone assembly in the country in 2017 via Wistron and later with Foxconn, in line with the Indian government's push for local manufacturing.

J.P.Morgan analysts estimate Apple may make one out of four iPhones in India by 2025 as the tech giant moves some production away from China, amid mounting geopolitical tensions and strict COVID-19 lockdowns in the country.

© Thomson Reuters 2022

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