NEW DELHI, Dec 5 (Reuters) – Apple (AAPL.O) has instructed India its native manufacturing targets shall be hit if New Delhi follows the European Union and requires present iPhones to have common charging ports, a authorities doc exhibits because the U.S. tech large lobbies for an exemption or delay.

India desires to implement a European Union rule that can require smartphones to have a common USB-C charging port, and has been in talks with producers about introducing the requirement in India by June 2025, six months after the deadline within the EU. While all producers together with Samsung (005930.KS) have agreed to India’s plan, Apple is pushing again.

Apple has for years provided a singular lightning connector port on its iPhones. The EU, nevertheless, estimates a single charger resolution would save about $271 million for shoppers, and India has mentioned the transfer will scale back e-waste and assist customers.

In a closed-door Nov. 28 assembly chaired by India’s IT ministry, Apple requested officers to exempt present iPhone fashions from the principles, warning it’ll in any other case wrestle to fulfill manufacturing targets set below India’s production-linked incentive (PLI) scheme, based on the assembly minutes seen by Reuters.

PLI is a key venture of Prime Minister Narendra Modi and gives digital producers in India fiscal incentives for contemporary investments and incremental telephone gross sales every year. It has been extensively utilized by Apple suppliers like Foxconn (2317.TW) to develop iPhone manufacturing within the nation.

“If the regulation is implemented on earlier models of mobile phones, they (Apple) will not be able to meet the PLI targets,” the minutes quoted Apple’s regulatory and product compliance executives as saying whereas opposing the principles.

Apple didn’t quantify the manufacturing affect within the assembly, and the IT ministry determined to evaluation its request and attain a choice later, two individuals conversant in the discussions mentioned.

Apple, whose India lobbying efforts are being reported for the primary time, and India’s IT ministry, didn’t reply to Reuters requests for remark.

DESIGN CAN’T CHANGE

India is seen as Apple’s subsequent development frontier after China.

Renowned Apple analyst Ming-Chi Kuo has estimated 12-14% of iPhone manufacturing in 2023 shall be from India, with the quantity set to rise to as a lot as 25% subsequent 12 months.

In phrases of market share, Apple accounts for six% of India’s booming smartphone market, in contrast with nearly 2% 4 years in the past. Apple suppliers have expanded their services and make most iPhone 12, 13, 14 and 15 fashions in India for native gross sales and exports, Counterpoint Research estimates.

Only iPhone 15 has the brand new common charging port. Apple instructed Indian officers within the assembly that the “design of the earlier products cannot be changed,” the doc confirmed.

Consumers in India’s price-conscious market desire shopping for older fashions of iPhones which generally turn into cheaper with new launches, and India’s push for the widespread charger on older fashions may hit Apple’s targets, mentioned Prabhu Ram, head of the Industry Intelligence Group at CyberMedia Research.

“Apple’s fortunes in India have primarily been tied to older generation iPhones,” he mentioned.

The EU’s charging port guidelines kick in in December 2024, and India desires compliance by June 2025.

Apple instructed officers it might probably adjust to that timeline if present fashions are exempted from the principles, however will want 18 months past 2024 if they aren’t.

“A natural transition period should be given … keeping in mind the product design timelines,” the minutes quoted Apple executives as telling authorities officers.

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