No slowdown in India expansion plan, says Apple

New Delhi: Apple has told govt that it does not intend to slow down the expansion of iPhone production in India. This expansion is estimated to entail investments of around $2.5 billion and will continue to boost manufacturing capacity to around 60 million units annually, up from the current 40 million-plus units.

A large part of the expansion is being done for export markets, especially for supply to customers in the US.The assurance comes despite mounting pressure from US President Donald Trump to restrict the expansion of iPhone production in India to meet the requirements of the US market.Highly-placed sources said, Apple, which has also started to make soon-to-be-launched iPhone 17 range in India, has "categorically assured the govt that it does not intend to slow down expansion plans and investments" in the country.

This is especially true as Apple finds the manufacturing environment, as well as the quality of production, factory set-up and other infrastructure, among the best in the world."Company executives have told us that there will be no change in plans when it comes to India investments. The expansion plans will continue as previously envisaged," the official sources told TOI.Apple has been expanding rapidly in India over past few years and its two key vendors - Taiwanese company Foxconn and the Tata group (which acquired Wistron's factories and a controlling stake in Pegatron's operations) - are in the middle of significant expansion.

The expansion by Apple is being seen encouragingly by govt as it happens despite Trump's stiff opposition to iPhone exports from India and also when diplomatic relations between the two countries have worsened over stiff tariff announcements by US govt. However, smartphones, computers, and other electronic devices are currently exempted from the US tariffs.The US President, nevertheless, has been pushing Apple and its CEO Tim Cook not to make iPhones in India for meeting the needs of US consumers.

"I had a little problem with Tim Cook... I said to him, my friend, I am treating you very good... but now I hear you are building all over India. I don't want you building in India," he said during his visit to Doha in May.Cook's clear stance on India manufacturing, however, is being seen as a signal that the American electronics giant stays bullish on India, especially as the country is also consistent in showing strong growth when it comes to local sales.

Speaking to analysts after the company's quarterly results on July 31, Cook said "majority" of iPhones sold in the US in the past quarter were made in India. China, the erstwhile production giant, is only playing a second fiddle and is used more to service non-US markets.Apple is estimated to have exported iPhones worth $17 billion from India last year, apart from doing pretty strongly in domestic market sales where it hit a double-digit market share. In his earnings call, Cook said revenues in India are witnessing record growth, led by the growth in sales of iPhones.