An official document reveals that Apple (AAPL.O) has informed India that its local manufacturing objectives will be impacted if New Delhi follows the European Union’s lead and mandates that all current iPhones be equipped with universal charging ports. This comes as the American technology giant attempts to lobby for an exemption or a delay.
There have been discussions with manufacturers over the possibility of requiring India by June 2025, six months after the EU deadline. India is interested in implementing a rule that the European Union will implement requiring smartphones to include a universal USB-C charging port. Although every manufacturer, including Samsung (005930. KS), has approved India’s proposal, Apple continues to oppose it.
Throughout the years, Apple has provided its iPhones with a lightning connection port that is one of a kind. India has stated that this move will benefit users and minimize the amount of electronic trash produced. The European Union (EU) believes a single charger solution will save customers around $271 million.
According to Reuters’ meeting minutes, Apple requested that existing iPhone models be exempt from the rules during a meeting that took place behind closed doors on November 28. Apple warned that if the rules were not implemented, the company would have difficulty meeting production targets established under India’s production-linked incentive (PLI) incentive program.
One of the most critical projects that Prime Minister Narendra Modi is working on is the Public Liability Initiative (PLI), which provides financial incentives to electronic producers in India for new investments and higher phone sales each year. The expansion of iPhone manufacturing in Taiwan has been facilitated by Apple suppliers such as Foxconn (2317. TW), which has used this technology considerably.
“If the regulation is implemented on earlier models of mobile phones, they (Apple) will not be able to meet the PLI targets,” an executive from Apple’s regulatory and product compliance department was cited as stating in the minutes, expressing their opposition to the restrictions.
Apple did not provide a quantitative estimate of the impact on production at the meeting, and the IT ministry decided on its proposal and concluded later than two individuals who were aware of the proceedings.
Reuters’ inquiries for comment were not met with a response from either Apple or India’s Information Technology Ministry. Apple’s lobbying activities in India are being disclosed for the first time.
After China, India is considered Apple’s next growth frontier opportunity.
The well-known Apple analyst Ming-Chi Kuo has anticipated that India will be responsible for 12–14% of the manufacture of iPhones in 2023, with the percentage expected to increase to as high as 25% the following year.
In terms of market share, Apple is responsible for 6% of India’s thriving smartphone industry, a significant increase from the around 2% market share it held four years ago. According to estimates provided by Counterpoint Research, Apple suppliers have expanded their facilities. They are now producing the majority of the iPhone 12, 13, 14, and 15 models in India for domestic and international sales.
New universal charging ports are only available on the iPhone 15 model. During the conference, Apple informed Indian officials that the “design of the earlier products cannot be changed,” as the paper demonstrated.
According to Prabhu Ram, head of the Industry Intelligence Group at CyberMedia Research, consumers in India’s price-conscious market prefer to purchase older versions of iPhones, which grow cheaper with new launches. According to Prabhu Ram, India’s push for the standard charger on older models might harm Apple’s objectives.
“Apple’s fortunes in India have primarily been tied to older-generation iPhones,” added the executive.
When the laws governing charging ports in the EU go into effect in December 2024, India hopes to comply by June 2025.
Apple informed the government that it could meet that timetable if the requirements were excused from the existing models. Still, the company would require an additional 18 months beyond 2024 if they were not exempt.
“A natural transition period should be given, keeping in mind the product design timelines,” Apple executives said to government officials in the minutes.
