Apple has no plans to manufacture MacBooks, iPads in India
What's the story
Apple isn't looking to shift its MacBook and iPad production to India anytime soon, as per the Times of India.
The company's decision is driven by the low domestic demand and the difficulties of building a robust supply chain.
That said, Apple has started a feasibility study to look into expanding its manufacturing footprint in India beyond iPhones and AirPods.
Strategic decision
Apple's reluctance to manufacture MacBooks here
Apple's unwillingness to manufacture MacBooks in India comes as a blow to the Indian government.
This is despite the latter announcing a revised and expanded IT hardware manufacturing PLI (production-linked incentive) scheme in 2023.
One source said, "Apple is surely looking at India for more manufacturing... The tariff situation and US tensions with China, however, have opened up the prospects of a feasibility on MacBooks and even the iPads."
Market constraints
Limited sales market and supply chain challenges
Apple has also informed the Indian government about the "limited sales market" for MacBooks and iPads in India.
Unlike these, iPhone sales are strong, which makes local production advantageous.
Another major reason for not moving MacBook and iPad production to India is the time to establish a strong supply chain here.
It could take three to four years to set up a credible and strong supply chain here, much of which will also have to be shifted from China.
Expansion plans
Apple's manufacturing strategy in India
Apple has cemented its ground in India for iPhone production, making its factories here one of the largest hubs for manufacturing the phones outside China.
The idea is to increase iPhone production in India, not just because of tariffs but also as part of the China+1 strategy.
Foxconn and Tata Group are currently producing iPhones in India, mainly for shipping to Apple's home market in the US due to higher tariffs from China.