Apple Inc. has cautioned the Indian government that its local production targets could be jeopardized if the country adopts the European Union’s mandate for universal charging ports across all smartphones. The tech giant is seeking an exemption or delay for existing iPhone models, citing design constraints and potential disruption to its manufacturing operations. (via. Reuters)
India is contemplating implementing a similar regulation to the EU’s, which would necessitate a switch to USB-C charging ports for all smartphones by June 2025. Apple has long employed a proprietary Lightning connector port on its iPhones, which distinguishes them from competitors.
The EU estimates that a universal charger standard would save consumers around $271 million. India has also expressed support for the move, citing its potential to reduce e-waste and enhance user convenience.
Apple has maintained that the design of its existing iPhone models precludes modifications to accommodate the new charging standard. The company has requested an 18-month extension if the exemption is not granted, arguing that complying with the rule within the proposed timeframe would pose significant challenges.
Furthermore, Apple has expressed concerns that failing to exempt existing models from the rule could hinder its ability to meet production targets set under India’s production-linked incentive (PLI) scheme. PLI, a flagship initiative of Prime Minister Narendra Modi, offers financial incentives to electronics manufacturers in India for fresh investments and incremental phone sales each year. Apple suppliers like Foxconn have extensively utilized this scheme to expand iPhone manufacturing in the country.
Apple’s lobbying efforts in India have garnered attention for the first time. Neither the company nor India’s IT ministry has responded to requests for comment.
India is widely regarded as Apple’s next growth frontier following China’s market saturation. Renowned Apple analyst Ming-Chi Kuo has predicted that 12-14% of iPhone production in 2023 will originate from India, with the figure projected to reach as high as 25% next year.
Apple’s success in India has been largely driven by older generation iPhones. Price-conscious Indian consumers often opt for older iPhone models, which typically become more affordable with the release of newer versions.
If India enforces a universal charging port mandate, Apple’s targets in the country could be adversely affected. The company may face the dilemma of either adhering to the new rule or risking a decline in its Indian market share.
The Indian government is currently evaluating Apple’s request for an exemption or delay. The company has emphasized the need for an 18-month extension if existing iPhone models are not excluded from the new regulation.
