Apple Faces Production Dilemma as India Pushes for Universal USB-C Chargers

In a move echoing the European Union’s recent directive, India is considering mandating universal USB-C charging ports for existing smartphones. However, Apple, known for its proprietary lightning connector, is actively seeking exemptions or delays that could impede its local production targets.

The Indian government’s push for Apple to reintroduce older iPhones with USB-C ports comes amid discussions to align with the EU’s charging port regulations, aiming for implementation by June 2025—six months after the EU’s December 2024 deadline. While major players like Samsung commit to complying with India’s plan, Apple argues that adhering to these regulations would jeopardize its ability to meet production targets outlined in India’s Production-Linked Incentive (PLI) scheme.

Historically employing a proprietary lightning connector port, Apple’s move towards USB-C is critical for India’s regulatory landscape. In a closed-door meeting on November 28, Apple presented its case to India’s IT ministry, requesting exemptions for existing iPhone models. The company emphasized concerns that integrating USB-C into older iPhone designs would hinder meeting PLI targets—crucial for manufacturers to receive fiscal incentives under Prime Minister Narendra Modi’s ambitious PLI initiative.

Apple’s regulatory and product compliance executives outlined the challenges of swift adaptation, citing the unique dynamics of India’s price-sensitive market. Consumers in India often opt for older iPhone models as they become more affordable with each new release. The proposed shift to a common charger for these models could potentially impact Apple’s sales targets in the country, according to Prabhu Ram, head of the Industry Intelligence Group at CyberMedia Research.

While the EU’s charging port regulations are set to come into effect in December 2024, India’s compliance target of June 2025 provides a brief window for adjustment. Apple assured Indian officials during the meeting that it could meet this timeline if existing models were exempted from the regulations. However, the company also highlighted potential difficulties in meeting production goals within the specified timeframe if an exemption isn’t granted, suggesting an additional 18 months beyond 2024 may be necessary for full compliance. As the discussions unfold, the tech giant finds itself at a crossroads, balancing regulatory demands with its production capabilities in one of the world’s largest smartphone markets.