Share This Article
Foxconn, one of Apple’s key manufacturing partners, has broken ground on new iPhone plants in Telangana, India, marking a significant step in Apple’s efforts to reduce its reliance on China as a production hub. The Indian government made the announcement today, revealing that Foxconn’s investment in the region amounts to a staggering $500 million. This move is expected to diversify Apple’s production capabilities and mitigate risks associated with the pandemic-induced disruptions in China.
Notably, at least one of these new plants will also manufacture AirPods, following a contract offered by Apple to Foxconn back in March. The decision to expand the production of both iPhones and AirPods in India is a strategic one for Apple, given the country’s potential as a major manufacturing base. It is believed that by 2025, a quarter of all iPhones could be produced in India, and this figure may rise to half by 2027, according to reports.
For the upcoming iPhone 15, Apple has set its sights on simultaneous assembly in both China and India. In February, reports emerged indicating that a new Foxconn plant in India would be approximately half the size of the colossal iPhone assembly facility in Zhengzhou, China, often referred to as “iPhone City.” This development emphasizes India’s pivotal role in Apple’s manufacturing strategy.
India’s industry and commerce minister took to Twitter to announce that Foxconn has commenced construction on the new iPhone plant. The region’s government is renowned for its swift response and support for new business plans, referred to as “Telangana Speed,” which undoubtedly played a role in attracting Foxconn’s investment.
Foxconn’s chairman, Young Liu, expressed confidence that the company’s production expansion in India would double its revenue in the country. By leveraging India’s manufacturing capabilities and market potential, both Foxconn and Apple aim to capitalize on the growing demand for iPhones and AirPods.
The partnership between Foxconn and Apple will also witness a significant milestone: the production of AirPods in India for the first time. Reuters reported that Foxconn is investing $200 million in a new factory dedicated to manufacturing Apple’s wireless earbuds and other products. This decision not only strengthens Apple’s presence in the Indian market but also aligns with the broader trend of diversifying production locations to mitigate risks and streamline operations.
Related articles
- Apple Secures Dominant Share of TSMC’s 3nm Chip Capacity for Future Devices
- Apple Extends Satellite Connectivity to Australia and New Zealand with iPhone 14 Series
As Apple continues to navigate the challenges presented by the pandemic and seeks to establish a more geographically balanced supply chain, India emerges as a beacon of opportunity. With its robust manufacturing infrastructure and favorable business environment, India holds the promise of becoming a major production hub for Apple, embodying the company’s vision of expanding its global footprint and reducing its dependence on any single region.
