In a recent critique, Patrick McGee, author of Apple in China, has raised concerns over Apple's limited investment in India, suggesting that the tech giant is not doing enough to establish a robust presence in the country compared to its operations in China. McGee argues that while Apple has been manufacturing iPhones in India since 2017, the motivation behind this move was primarily to circumvent tariffs imposed by the Indian government under Prime Minister Narendra Modi.
According to McGee, Apple's efforts in India gained some traction only after the COVID lockdowns in China exposed vulnerabilities in its supply chain, prompting a need for diversification. However, he emphasizes that the scale of investment and commitment in India still pales in comparison to the extensive supply chain network Apple has built in China over decades.
McGee’s observations highlight a broader concern about whether Apple is truly prioritizing India as a strategic manufacturing hub or merely using it as a workaround for trade barriers. He suggests that without significant capital and long-term planning, Apple risks missing out on fully leveraging India's potential as a growing market and production base.
The author, who has extensively covered Apple’s operations for the Financial Times, also points out that the company’s deep ties with China have created a complex dependency. This relationship, detailed in his book, makes a rapid or substantial shift to other regions like India a challenging endeavor for Apple in the near future.
Industry analysts echo McGee’s sentiments, noting that while Apple has ramped up production in India recently, the pace and depth of investment need to accelerate to match the scale seen in other regions. The Indian government’s push for local manufacturing through incentives and policies could be a catalyst, but only if Apple commits more resources.
As the debate continues, stakeholders are watching closely to see if Apple will heed such critiques and bolster its presence in India. For now, McGee’s analysis serves as a reminder of the delicate balance Apple must strike between maintaining its global supply chain and adapting to emerging markets with untapped potential.
Andrew Lee
