Apple's iPhone assembly partners in India are expected to benefit from the country's $6.6 billion Production-Linked Incentive Scheme, an initiative to encourage the production of smartphones in the region.
Apple's assembly partners are reportedly considering the possibility of opening up new factories in Mexico, in what could be an attempt by Apple to diversify its supply chain further away from China.
As it announces better than expected financial results, Apple supplier Foxconn is also reportedly planning to increase moving production away from China.
Apple supplier Foxconn has reported second quarter revenues of $778.54 million, considerably above predictions. The company credits coronavirus telecommuting demand for the increase.
Foxconn has commenced its annual recruiting drive to bring on more staff to its facilities in China, in preparation for the start of mass production for the "iPhone 12."
An inconsistent report claims that unnamed Apple manufacturing partners are moving six iPhone production lines to India, as part of an increasing trend to relocate from China.
Apple's assembly partners Foxconn, Pegatron, and Wistron have all applied to participate in India's $6.6 billion Production-Linked Incentive Scheme, in a bid for benefits for increasing production of smartphones in the country.
The company's plant near Chennai has previously made the iPhone XR, but this is the first time Foxconn has made any of the iPhone 11 range in the country.
The sale of an iPhone factory owned by Wistron to Luxshare may be a long-term problem for rival Apple supply chain partners Hon Hai and Pegatron, JP Morgan reckons, with the purchase likely to help Wistron increase its involvement in iPhone production further.
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.
Despite its second quarter revenues still being lower than last year, Foxconn's finances appear to be recovering broadly in line with the company's forecast.
Ships from companies including iPhone manufacturer Foxconn had been held up by customs at Indian ports over ongoing China/India tensions, but at least some have now been cleared.
Over 150 Foxconn large-scale component shipments were stuck at the port of Chennai after clashes at the disputed Galwan Valley turned deadly, forcing continued backups in iPhone assemblies in India.
Freight arriving by container ship with a China origin containing goods from US firms including Apple and Dell are being held up as Indian ports refuse to clear shipments.
Apple appears poised to begin iPhone SE assembly in India, and in doing so, will be able to avoid a steep tax levied on smartphones imported into the country.
Apple has spent years and millions of dollars on automating its production lines with technology, and it has always reverted to using skilled human beings instead.
Apple's major iPhone manufacturer Foxconn has reported that the coronavirus has vastly reduced its lower profits, even more than analysts expected, but says that sales are now stabilizing.
