Apple’s plan to make iPads in India were put on hold after failed negotiations with the government over tax breaks, but the company is now reportedly making a fresh attempt.
It’s now more than a year after we’d expected iPad production in India to begin, and both sides will be hoping for a better outcome this time …
Hardline negotiations between Apple and India
Both Apple and India were equally motivated when it came to turning the country into a major manufacturing hub for the company. Apple wanted to reduce its dependence on China, and India would be getting a huge boost to its plans to turn the country into a major tech manufacturing center.
However, both sides took hardline positions over the negotiations. India insisted on ambitious production targets before it would allow Apple Stores to open in the country, and Apple insisted on generous tax incentives. Negotiations between the two were tortuously slow.
iPhone assembly finally began in 2017, with Apple getting tax breaks worth between 4% and 6% of their value, depending on volumes. Apple finally hit the production levels needed to get permission to open retail stores in the country, and the first one opened in 2023.
Making iPads and AirPods in India
In 2021, the government agreed to similar incentives for iPad production, though these were less generous. Apple wanted far bigger tax-breaks, and a compromise was eventually reached where the Cupertino company appeared to have done better from the deal.
iPad production in India looked set to kick off around a year ago now, but it seemed that the two sides were still not able to reach a final agreement.
Benzinga India reports that plans now appear to have been revived.
Apple will likely resume its search for a manufacturing partner in India after its previous attempt to collaborate with China’s BYD for iPad production in the country was stopped short by government restrictions, Moneycontrol said citing sources.
AirPods production in India is also expected, building on Jabil’s role in making components for the devices.
The company reportedly plans to start production of true wireless stereo (TWS) AirPods, in India from early next year.
9to5Mac’s Take
Both sides are certainly incentivized to make this work, but each has proven willing to hold out for the best possible deal.
Hopefully things will finally happen this time, but given previous false-starts, we’ll believe it when the first units roll off the production line.
Via Patently Apple. Photo by Brandon Romanchuk on Unsplash.
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