Apple set $50 billion manufacturing target in India - but issues persist

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Apple is currently experiencing a Dickensian 'the best and worst of times' in India. The federal Indian government has sought out top officials of the company in the country and asked them to generate annual production worth around $50 billion over the next 5-6 years.

But elsewhere, Apple's beleaguered assembler Foxconn unit in Tamil Nadu continues to remain shut, even as it is racing against time to start production of iPhone 13. Apple itself has put Foxconn on notice, even as there is news that the Cupertino-based company wants to shift much of its business to a new Chinese assembler Luxshare.

Amidst all this also comes the news that India's competition watchdog has ordered an investigation into Apple business practices over antitrust issues.

As we said, it is confusing maelstrom of events, and to make sense of it in a linear way is a bit difficult.

Make devices other than iPhones, Apple told

What is increasingly clear is that India needs Apple as a manufacturer, as its presence will send out all the right signals for other companies. Keeping this in view, top officials, including an Union Minister, recently met with senior representatives from Apple.

Though both the teams have not made any official statement on the meeting, media reports have it that the government, which needs to sustain the 'Make In India' campaign, has urged Apple to also start manufacturing MacBooks, new version of iPads, Air Pods, Apple Watch in India so that production can reach $50 billion in the next 5-6 years. As of now, Apple's assemblers in India ---- Foxconn, Wistron and Pegatron --- have been making iPhones and slightly older version of iPads.

The government is said to have impressed upon Apple to take advantage of the production-linked incentive (PLI) scheme and expand their operations in the country. Also, the government said it has announced capital subsidy schemes for several sectors including semiconductor manufacturing. The officials asked Apple to utilise these benefits to grow their presence in the country.

Anti-trust body questions Apple's app policies

Meanwhile, the Competition Commission of India has ordered a detailed probe against Apple for alleged unfair business practices with respect to its App Store.

The order is in response to a case filed by a non-profit group, "Together We Fight Society", which claimed that Apple was abusing its dominant position in the apps market by forcing developers to use its proprietary in-app purchase system.

The CCI in its order said there was prima facie denial of market access for the potential app distributors/app store developers in violation of competition norms.

The 20-page order further said that Apple's practices prima facie results in limiting/restricting the technical or scientific development of the services related to app store for iOS, due to reduced pressure on Apple to continuously innovate and improve its own app store, which is also in violation of competition rules.

Apple has denied the allegations in its filing to the CCI.

Foxconn's India plant under the scanner

Meanwhile, even as Apple has put Foxconn on notice, the local federal government in Tamil Nadu has told the company to not restart the plant until all the conditions are fulfilled. There is some issue with regard to the facilities at the workers hostels. The canteen at the plant has however been given the clean chit.

Foxconn needs to get the plant going if it is meet its committed deadline for iPhone 13. Foxconn has committed itself to $350 million more investment in the plant to build an exclusive assembly line for iPhone's last released phone.

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Over three decades as a journalist covering current affairs, politics, sports and now technology. Former Editor of News Today, writer of humour columns across publications and a hardcore cricket and cinema enthusiast. He writes about technology trends and suggest movies and shows to watch on OTT platforms.