‘EU-style charger rules will hit local iPhone production target’: Apple to India

Apple has informed India its native manufacturing targets shall be hit if New Delhi follows the European Union and requires present iPhones to have common charging ports, a authorities doc reveals because the U.S. tech big lobbies for an exemption or delay.

India needs to implement a European Union rule that can require smartphones to have a common USB-C charging port, and has been in talks with producers about introducing the requirement in India by June 2025, six months after the deadline within the EU. While all producers together with Samsung have agreed to India’s plan, Apple is pushing again.

Apple has for years provided a singular lightning connector port on its iPhones. The EU, nonetheless, estimates a single charger resolution would save about $271 million for shoppers, and India has stated the transfer will scale back e-waste and assist customers.

In a closed-door Nov. 28 assembly chaired by India’s IT ministry, Apple requested officers to exempt present iPhone fashions from the foundations, warning it would in any other case battle to fulfill manufacturing targets set beneath India’s production-linked incentive (PLI) scheme, in line with the assembly minutes seen by Reuters.

PLI is a key mission of Prime Minister Narendra Modi and affords digital producers in India fiscal incentives for contemporary investments and incremental cellphone gross sales annually. It has been extensively utilized by Apple suppliers like Foxconn to increase iPhone manufacturing within the nation.

“If the regulation is implemented on earlier models of mobile phones, they (Apple) will not be able to meet the PLI targets,” the minutes quoted Apple’s regulatory and product compliance executives as saying whereas opposing the foundations.

Apple didn’t quantify the manufacturing influence within the assembly, and the IT ministry determined to evaluation its request and attain a call later, two folks acquainted with the discussions stated.

Apple, whose India lobbying efforts are being reported for the primary time, and India’s IT ministry, didn’t reply to Reuters requests for remark.

India is seen as Apple’s subsequent development frontier after China.

Renowned Apple analyst Ming-Chi Kuo has estimated 12-14% of iPhone manufacturing in 2023 shall be from India, with the quantity set to rise to as a lot as 25% subsequent yr.

In phrases of market share, Apple accounts for six% of India’s booming smartphone market, in contrast with nearly 2% 4 years in the past. Apple suppliers have expanded their services and make most iPhone 12, 13, 14 and 15 fashions in India for native gross sales and exports, Counterpoint Research estimates.

Only iPhone 15 has the brand new common charging port. Apple informed Indian officers within the assembly that the “design of the earlier products cannot be changed,” the doc confirmed.

Consumers in India’s price-conscious market choose shopping for older fashions of iPhones which usually turn out to be cheaper with new launches, and India’s push for the widespread charger on older fashions might hit Apple’s targets, stated Prabhu Ram, head of the Industry Intelligence Group at CyberMedia Research.

“Apple’s fortunes in India have primarily been tied to older generation iPhones,” he stated.

The EU’s charging port guidelines kick in in December 2024, and India needs compliance by June 2025.

Apple informed officers it could actually adjust to that timeline if present fashions are exempted from the foundations, however will want 18 months past 2024 if they aren’t.

“A natural transition period should be given … keeping in mind the product design timelines,” the minutes quoted Apple executives as telling authorities officers.