Apple's Latest Moves To Abandon China Require A Big Lift: Changing India's Rules

  • Apple Inc AAPL is seeking changes in India’s labor laws to expand local production. 
  • India’s regional governments are yielding to Apple’s request to move iPhone assembly from China, Bloomberg reports.
  • India’s southern Tamil Nadu state, where Apple’s top supplier Hon Hai Precision Industry Co Ltd HNHPF Foxconn Technology Group operates India’s largest iPhone plant, is weighing new rules to make factory shifts more flexible.
  • Also Read: Apple’s Chinese Suppliers Sped To Migrate Production Beyond Country, Vietnam And India Key Beneficiaries
  • Executives from Apple and the Indian Cellular and Electronics Association lobby group representing the iPhone maker and its suppliers met with state government officials over six months to push for the reforms. The planned changes would bring local working hours on par with the iPhone factories in China.
  • The suggested changes include allowing factories to operate two shifts of 12 hours each instead of the previous three 8-hour shifts.
  • The changes could also encourage more women to work in factories. 
  • Apple and its suppliers are also in talks to build large working women’s hostels in and around factory complexes, which would reduce travel time.
  • India’s local manufacturing push, financial incentives, and relatively cheaper labor have led Foxconn, Pegatron Corp PGTRF, and Wistron Corp WICOF to ramp up in the South Asian nation.
  • Price Action: AAPL shares traded lower by 0.29% at $159.65 on the last check Tuesday.
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