No ‘immediate plans’ to make MacBooks and iPads in India

Apple apparently does not have any plans to shift production of MacBooks and iPads to India in near future, according to sources. This is due to the small size of domestic consumption and complexities in setting up the supply chain ecosystem. What is seen as a silver lining for India is that Apple has started a feasibility study to consider broadening the India manufacturing base beyond iPhones and AirPods.

Current Manufacturing Focus

Apple plans to scale up its production in India to over $40 billion in the next 4-5 years, up from $7 billion in the last fiscal year. This expansion includes manufacturing iPhones and starting the production of AirPods from 2024. However, there are no immediate plans to produce iPads or MacBooks in India. The company has not yet applied for the government's IT hardware Production-Linked Incentive (PLI) scheme, which could potentially support such manufacturing initiatives.

The decision not to manufacture MacBooks and iPads in India is influenced by several factors: -

·  Demand Levels: The domestic demand for MacBooks and iPads in India is not compelling enough for Apple to justify the investment required for local manufacturing.

·  Supply Chain Complexity: Manufacturing MacBooks and iPads involves a more complex supply chain compared to iPhones, which could pose additional challenges in the Indian context.

·  Government Negotiations: Discussions between Apple and the Indian government over tax incentives and production targets have been slow, affecting the timeline for potential future manufacturing of these products.