After India, Apple Plans iPhone Manufacturing in Pakistan

Following its expansion in India, Apple is reportedly planning to begin iPhone manufacturing in Pakistan. According to recent reports, the tech giant will not only assemble new devices but also refurbish older iPhones for re-export, leveraging incentives under Pakistan’s proposed mobile and electronics manufacturing framework.

Pakistan to Host Apple iPhone Manufacturing

Sources indicate that Apple is exploring Pakistan as a new manufacturing hub after the government agreed to provide incentives under its proposed Mobile and Electronics Manufacturing Framework. These incentives aim to attract global tech companies to set up local production, with the goal of boosting employment and reducing import dependency.

Refurbished iPhones to Generate Revenue

Under the new framework, Apple will also refurbish older iPhones and re-export them, with the Pakistani government estimating potential earnings of $100 million in the first year through this initiative.

Performance Incentives and Support from the Government

Apple management has requested discounted land, an 8% performance incentive, and approval to repair two-to-three-year-old iPhones as part of the setup process. According to Hamad Ali Mansoor, CEO of the Engineering Development Board (EDB), these provisions have been incorporated into the proposed framework, awaiting approval from Prime Minister Shehbaz Sharif.

Following the India Model

Apple’s approach in Pakistan will mirror its strategy in India, Indonesia, and Malaysia, where it first trained local workforce through refurbishment programs before initiating full-scale manufacturing. To make the region more attractive for global manufacturers, Pakistan plans to increase the performance incentive from 6% to 8%.

Lower Prices Expected for iPhones in Pakistan

Currently, iPhones in Pakistan are expensive due to high import duties. Local assembly and refurbishment are expected to reduce these costs, potentially making iPhones more affordable for Pakistani consumers. However, implementation of this plan may take some time.