Apple's made in India plans may hit a 'snag' by India's EU-style charger rules

Dec 06 2023 09:23 AM IST
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The EU has mandated companies to ensure that a common charging port should be there in devices, which made Apple switch to USB-C port in the iPhone 15 series. India too plans to do the same. Apple has expressed concerns to the Indian government regarding the potential impact on its local production targets if India adopts the European Union's directive.
TheEuropean Unionended up forcingAppleto make a big change to iPhones and other products. The EU has mandated companies ...

TheEuropean Unionended up forcingAppleto make a big change to iPhones and other products. The EU has mandated companies to ensure that a common charging port should be there in devices, which made Apple switch to USB-C port in the iPhone 15 series. It has been reported that India too plans to do the same. Now, according to a report by Reuters, Apple has expressed concerns to the Indian government regarding the potential impact on its local production targets if India adopts the European Union’s directive for iPhones to feature universal charging ports.While the EU’s directives come into force in 2024, India wants to implement it by 2025.The report says that while major smartphone manufacturers, including Samsung, have endorsed Indian government’s plan, Apple has raised objections. The tech giant, known for its proprietary lightning connector port on iPhones, is urging Indian authorities for an exemption or delay, citing potential challenges in meeting production targets outlined in India’s production-linked incentive (PLI) scheme.During a closed-door meeting held on November 28 and chaired by India’s IT ministry, Apple requested an exemption for existingiPhone modelsfrom the charging port rules. Apple contends that enforcing the regulation on earlier iPhone models would hinder its ability to fulfill the PLI targets, a critical aspect of Prime Minister Narendra Modi’s economic initiatives. The PLI scheme provides fiscal incentives to electronic manufacturers for new investments and incremental phone sales.India is important for Apple, Apple is important for IndiaApple, a significant player in India’s growing smartphone market, highlighted that changing the design of earlier iPhone products would be impractical. The company did not specify the production impact during the meeting, prompting the IT ministry to review the request and defer a decision.Analysts estimate that a substantial portion of iPhone production in 2023—12-14%—will originate from India, with a potential increase to 25% in the following year.Previous generations of iPhones are crucial for Apple in the Indian market.As the EU’s charging port rules take effect in December 2024, India is looking to follow suit by June 2025. Apple, as per the report, has said that it can meet the deadline as long as long as older models are exempted. If the exemption isn’t granted then Apple has indicated that there may be a need for an additional 18 months The company emphasised the importance of a natural transition period to align with product design timelines. Both Apple and India’s IT ministry have not responded to requests for comment on this matter, noted the Reuters report.


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