Apple reportedly pushes Foxconn to invest $1B to expand iPhone manufacturing in India

Taiwanese contract manufacturer Foxconn is reportedly preparing to infuse up to $1 billion into a production facility in India, an investment supposedly made at the behest of Apple.

Citing sources familiar with the matter, Reuters reports Apple is quietly pushing supply partners to expand beyond China amid political tensions and the coronavirus pandemic.

"There's a strong request from Apple to its clients to move part of the iPhone production out of China," one source told the publication.

Foxconn reportedly plans to expand operations at its Sriperumbur plant, which is currently responsible for iPhone XR production. Over the next three years, Foxconn will add models to the facility's assembly list, sources said.

The up to $1 billion infusion will result in some 6,000 jobs, according to the report.

Apple is once again working to diversify its supply chain as the U.S. and China trade war continues. Plans to move portions of the complex system of manufacturers and assemblers out of China have been in the works for years, some reports claim, though Apple's partners only recently began moving toward that goal.

With the world's second-largest smartphone market, India is a juicy target for Apple. Currently, iPhone accounts for approximately 1% of the country's smartphone market, but dominates the ultra-premium segment with an estimated 63% share. Building handsets locally will drive down costs and bypass certain tariffs, making iPhone a more attractive option for Indian buyers.

India has been courting tech companies to enter the country with tax incentives and other stimulus plans, though government promises have only recently borne fruit.

35 Comments

SpamSandwich 19 Years · 32917 comments

About 4 years ago

They can do it India but not the US... come on, Tim.

Fatman 8 Years · 513 comments

I thought the same ... why not the US! ... then read that 6000 new jobs would be created. Average factory pay in India is about $2/hr - some say even robot cost average $4/hr! As long as slave labor wages are an option, factories that need this many humans will not open in the US.

6502 10 Years · 382 comments

Fatman said:

I thought the same ... why not the US! ... then read that 6000 new jobs would be created. Average factory pay in India is about $2/hr - some say even robot cost average $4/hr! As long as slave labor wages are an option, factories that need this many humans will not open in the US.

Exactly right. Slavery is alive and well in this world. I thought Tim was better than this. Nope. All talk, no walk. When India gets too expensive, they'll build factories in Uganda.

JWSC 7 Years · 1203 comments

6502 said:

Fatman said:

I thought the same ... why not the US! ... then read that 6000 new jobs would be created. Average factory pay in India is about $2/hr - some say even robot cost average $4/hr! As long as slave labor wages are an option, factories that need this many humans will not open in the US.

Exactly right. Slavery is alive and well in this world. I thought Tim was better than this. Nope. All talk, no walk. When India gets too expensive, they'll build factories in Uganda.

You’re both letting your own myopic western upbringing color your perceptions. Not one of those Indian laborers would think of those jobs as slave labor. They would be pleased to have those jobs as they would pay well by the standard of every other local job available to those with that skill set.

As Elon Musk has learned with Tesla, automation technologies have limits when it comes to quality of manufacture. In some circumstances hand assembly will ensure a higher quality build than is possible with robots.

BTW, very pleased to see that Apple has made this move. Would like to see more.

avs_htx 4 Years · 5 comments

Fatman said:

I thought the same ... why not the US! ... then read that 6000 new jobs would be created. Average factory pay in India is about $2/hr - some say even robot cost average $4/hr! As long as slave labor wages are an option, factories that need this many humans will not open in the US.
its funny anytime there is a discussion of low cost, it’s called slavery!!!whats two dollars in usa is almost rs 150 per hour in India. Which means more than 25k per month to assemble phones which is a blue collar job. I don’t see any slavery there. Companies that sell product world wide need to reduce their costs as mush as they can. Apple is head quartered in USA but more than half of its sales are outside the country. Same for every company. Also, case in point for American manufacturing costs, read about under armor.