Apple has informed the Indian authorities its native manufacturing targets can be hit if New Delhi follows the European Union and requires present iPhone fashions to have common charging ports, a authorities doc exhibits because the US tech large lobbies for an exemption or delay.
India needs to implement a European Union rule that may require smartphones to have a common USB-C charging port, and has been in talks with producers about introducing the requirement in India by June 2025, six months after the deadline in the EU. While all producers together with Samsung have agreed to India’s plan, Apple is pushing again.
Apple has for years provided a novel lightning connector port on its iPhones. The EU, nevertheless, estimates a single charger resolution would save about $271 million (roughly Rs. 2,259 crore) for customers, and India has mentioned the transfer will cut back e-waste and assist customers.
In a closed-door November 28 assembly chaired by India’s IT ministry, Apple requested officers to exempt present iPhone fashions from the principles, warning it can in any other case battle to fulfill manufacturing targets set underneath India’s production-linked incentive (PLI) scheme, based on the assembly minutes seen by Reuters.
PLI is a key venture of Prime Minister Narendra Modi and presents digital producers in India fiscal incentives for contemporary investments and incremental cellphone gross sales every year. It has been extensively utilized by Apple suppliers like Foxconn to develop iPhone manufacturing in the nation.
“If the regulation is implemented on earlier models of mobile phones, they (Apple) will not be able to meet the PLI targets,” the minutes quoted Apple’s regulatory and product compliance executives as saying whereas opposing the principles.
Apple didn’t quantify the manufacturing impression in the assembly, and the IT ministry determined to evaluate its request and attain a call later, two folks conversant in the discussions mentioned.
Apple, whose India lobbying efforts are being reported for the primary time, and India’s IT ministry, didn’t reply to Reuters requests for remark.
Design cannot change
India is seen as Apple’s subsequent progress frontier after China.
Renowned Apple analyst Ming-Chi Kuo has estimated 12-14 p.c of iPhone manufacturing in 2023 can be from India, with the quantity set to rise to as a lot as 25 p.c subsequent 12 months.
In phrases of market share, Apple accounts for 6 p.c of India’s booming smartphone market, in contrast with nearly 2 p.c 4 years in the past. Apple suppliers have expanded their amenities and make most iPhone 12, 13, 14 and 15 fashions in India for native gross sales and exports, Counterpoint Research estimates.
Only iPhone 15 has the brand new common charging port. Apple informed Indian officers in the assembly that the “design of the earlier products cannot be changed,” the doc confirmed.
Consumers in India’s price-conscious market desire shopping for older fashions of iPhones which usually develop into cheaper with new launches, and India’s push for the widespread charger on older fashions might hit Apple’s targets, mentioned Prabhu Ram, head of the Industry Intelligence Group at CyberMedia Research.
“Apple’s fortunes in India have primarily been tied to older generation iPhones,” he mentioned.
The EU’s charging port guidelines kick in in December 2024, and India needs compliance by June 2025.
Apple informed officers it may adjust to that timeline if present fashions are exempted from the principles, however will want 18 months past 2024 if they don’t seem to be.
“A natural transition period should be given … keeping in mind the product design timelines,” the minutes quoted Apple executives as telling authorities officers.
© Thomson Reuters 2023
