Why Apple’s Potential Move to Make iPads in India Could Be a Game-Changer

Apple’s Potential iPad Manufacturing Move to India Driven by Government Initiatives

Apple is considering resuming its plans to manufacture iPads in India, encouraged by the government’s efforts to attract more supply chains, sources close to the company told Moneycontrol under anonymity.

According to these sources, Apple may soon begin searching for a new manufacturing partner. The previous attempt to partner with China’s BYD to produce iPads in India was halted due to government restrictions driven by geopolitical issues.

“BYD was nearly ready to establish the iPad factory in India, but clearance issues arose. The situation has since improved. We are now assisting Apple in expanding its operations over the next two to three years, anticipating substantial growth,” a senior government official told Moneycontrol, speaking anonymously.

The government is also urging Apple to consider manufacturing laptops and desktops in India in the coming years.

The official stated that Apple has shared “significant plans” for India over the next 2-3 years with the government. “They aim to build an alternative supply chain in India, which will attract more partners and enhance the capabilities of existing ones.”

Last year, Apple shifted its iPad production focus to Vietnam with BYD after facing challenges in obtaining approvals for setting up iPad manufacturing in India.

This move comes as Apple significantly ramps up its iPhone manufacturing capabilities and boosts production of components for AirPod wireless charging cases through Jabil in India. Jabil Inc, an American multinational contract manufacturing company, also produces 4G and 5G equipment for Sweden’s Ericsson.

Apple plans to begin producing TWS (true wireless stereo) AirPods in India early next year. Currently, parts of wireless charging cases for AirPods are being manufactured in India and exported to China and Vietnam.

Apple initiated trial production of wireless charging case parts with Jabil in Pune, and similar production could extend to Foxconn, according to a person familiar with the matter.

“Upon Apple’s approval after quality testing, Jabil will scale up commercial production of wireless charging case parts for AirPods, addressing both export and domestic demand once Apple finalizes AirPod production plans in India,” the source said, wishing to remain anonymous.

AirPods will be the second product category after the iPhone to be manufactured in India. Apple’s AirPods lead the global TWS market.

Initially, Luxshare Precision Industry Co was set to manufacture AirPods in India, but the plan failed, leading the company to invest in Vietnam due to political tensions between the countries.

Apple, Foxconn, and Jabil did not respond to queries.

Apple is aggressively increasing local production of its flagship iPhones in India through Foxconn and Tata Electronics. Tata, which acquired Wistron operations, is in the process of acquiring Pegatron’s India operations, including an iPhone manufacturing plant near Chennai and another under construction.

Apple aims to manufacture a quarter of all its iPhones in India within the next 3-4 years, up from 14% currently, according to another official.

This effort includes building a network of local vendors to reduce reliance on Chinese suppliers.

In 2022, JP Morgan analysts predicted that by 2025, a quarter of all Apple products would be made outside China, up from 5% at that time. By the end of FY24, about $14 billion worth of iPhones were made in India, accounting for 14% of global production.

Apple reportedly achieved exports valued at over $2 billion in the first two months of FY25, representing 81% of the country’s total iPhone production worth $2.6 billion.

In 2023, Apple shipped over 10 million iPhones in India, securing the top revenue position for the year, surpassing Samsung, according to Counterpoint Research. In 2022, Apple shipped over 6 million iPhones.

Apple held a 23% revenue share of the smartphone market in 2023, surpassing Samsung’s 21% market share. In 2022, Samsung led with a 22% revenue share, while Apple had 17%, data accessed by Moneycontrol showed.