In another milestone in its massive shift away from China, Apple partner Foxconn is preparing plans to build a $700 million manufacturing center in India doing.
The Apple partner Foxconn Technology Group will build a new factory in Bangalore, a technology hub in southern India, Bloomberg reported, citing people familiar with the matter.
End of Chinese rule?
China has been the backbone of Global Supply he chain for decades, but in the post-Covid era, that pattern has changed radically. India has become one of the most popular destinations for global giants to set up their manufacturing sector and backend operations.
Apple cited labor disputes at Foxconn's China factory as one of the reasons for last year's slump in iPhone sales.
Foxconn's India plan to go ahead with its Bangalore plant in southern Karnataka could create up to 100,000 jobs. By comparison, his Foxconn flagship iPhone manufacturing facility in Shanghai employs 200,000 of his employees.
There is still no official confirmation of the new India plan from Foxconn, known for its flagship company Hon Hai Precision Industry. Apple also declined to comment on the news.
Indian Prime Minister Narendra Modi's Success
Interestingly, Hon Hai Chairman Young Liu met with Indian Prime Minister Narendra Modi this week. Liu is currently in India and is reportedly in talks to set up another manufacturing unit in Telangana, another southern Indian state known for its Hyderabad technology hub.
Under Prime Minister Modi, India is stepping up its pro-business credentials and offering much-needed political stability missed under the previous government, led by a ramshackle coalition. In recent years, the Indian government has sponsored the Make in India campaign, which aims to attract the majority of high-tech manufacturing jobs in Asia.
India Increases Production from India
India is a relatively new Apple manufacturing hub for him, but the country where the Cupertino-based tech giant exported his $1 billion worth of his iPhone from India late last year.
According to Bloomberg data, the outlook for Apple iPhone manufacturing in India is very strong. According to reports, iPhone shipments from India to Europe and the Middle East are projected to reach $2.5 billion in the 12 months to March 2023.
Apple began manufacturing the iPhone SE on a limited basis in India in 2017. But the government, led by Prime Minister Narendra Modi, announced massive stimulus packages in the years that followed, prompting Apple's Taiwanese contract manufacturers to further consider Indian options.
Currently Apple contract manufacturers Foxconn Technology Group, Wistron Corp. and Pegatron Corp manufacture various iPhone models in their factories in India. Currently, only about 3 million iPhones are manufactured in India, while in China he has a whopping 230 million iPhones.
Apple started manufacturing its latest iPhone 14 in India in September, giving a big boost to its manufacturing plans in India.
Apple's Problems in China
In early February, Apple reported that sales of his iPhones during the holiday season were down compared to the same period last year. The earnings report showed the company underperformed analysts' expectations for earnings, earnings, and bottom line. Apple's stock plunged 3 ter the company announced that first-quarter iPhone sales were down nearly 5% year-on-year.
Apple CEO Tim Cook said factors such as the strong dollar and production problems at factories in China that hit the iPhone 14 Pro and iPhone 14 Pro Max models contributed to the poor performance.
Last November, it was reported that Apple was expected to report a significant shortage of his iPhones. The unrest in the Chinese city where Foxconn's mega iPhone factory is located will hit Apple hard, halting production and threatening shipments, the report said. Bloomberg reported that Apple faced production shutdowns of up to 6 million iPhone Pro units this year.
