Apple has told India its local production targets will be hit if New Delhi follows the European Union and requires existing iPhones to have universal charging ports, a government document shows as the U.S. tech giant lobbies for an exemption or delay. The company is developing software to comply with a new EU law requiring mobile devices, including smartphones, to have a USB-C charger port instead of the proprietary Lightning connector currently used by most Apple products.
The move is part of efforts to reduce e-waste and allow new wireless technologies, such as fast charging, which could eventually replace wires. It could also cut consumer costs by eliminating the need for a separate cable to charge their phone and a second one to connect their laptop to their phone.
India wants to implement the EU rules by June 2025, six months after they take effect in Europe. But Apple, which is already pushing back against new requirements on apps that impose fees on some subscription services, is arguing the Indian rules are unfair because they would apply to all devices, regardless of whether they have a Lightning port or USB-C.
In recent years, Cupertino has boosted production in India and Vietnam as it cuts its dependence on China, which is responsible for more than half of Apple’s worldwide device assembly. JP Morgan analysts expect India will contribute 5% of iPhone production this year, 12% next year, and as much as 25% in 2023.
India’s consumer market is price-conscious, which makes it a key growth driver for Apple and other smartphone makers. The country is expected to contribute a fifth of Apple’s user growth over the next five years. According to Morgan Stanley, it will generate $40 billion in revenue over the same period.
But India’s efforts to entice global production giants like Foxconn and Wistron to build factories there have been complicated by regulatory uncertainty. Policy changes made with specific companies in mind will unlikely attract investors. Building up a domestic electric vehicle manufacturing system will require more than just the correct tariff rates, for example. That will require solid investments in supportive infrastructure, from electricity rates to charging stations.
