Foxconn to manufacture iPhone casings in India as Apple relocates production from China

Foxconn to manufacture iPhone casings in India as Apple relocates production from China

Trump’s Tensions with Apple and its Production Strategy

In recent developments, reports indicate that former President Donald Trump expressed dissatisfaction with Apple CEO Tim Cook, allegedly threatening the technology giant with a 25% tariff if iPhones do not begin production within the United States. While the underlying reasons for Trump’s ire remain speculative, some sources suggest it may be tied to Cook’s absence during a Middle East trip with Trump, which was attended by several prominent executives.

Apple’s Strategic Shift to India

Apple appears to be under scrutiny for its ongoing plans to establish a $1.5 billion iPhone production facility in India. Allegations of political maneuvering aside, the company is indeed navigating a challenging landscape, especially in light of the significant tariffs Trump has already enacted on Chinese imports, where a large portion of the iPhone manufacturing occurs. Seeking to mitigate its reliance on China, Apple has proactively outlined plans to shift more of its production operations to India, where tariffs are comparatively lower.

Foxconn’s Expanding Role in India

Recent reports from The Economic Times reveal that Foxconn, Apple’s primary iPhone assembler, is gearing up to manufacture iPhone casings in India. The proposed facility is set to be located at the ESR Industrial Park in Oragadam, Tamil Nadu, strategically situated near an upcoming display module manufacturing site.

Previously, Tata Electronics was responsible for the production of iPhone casings in India. However, Foxconn is now poised to expand its operations beyond mere assembly of iPhones at its Sriperumbudur plant to include the casing production as well. This transition underscores Foxconn’s commitment to assist Apple in diversifying its manufacturing efforts away from China.

Expert Insights on Apple’s Strategy

According to Prabhu Ram, vice president of CyberMedia Research’s industry research group:

This aligns well with Apple’s broader strategy to de-risk and diversify its supply chain. As India emerges as a linchpin in Apple’s growth momentum — with early signs of an end-to-end manufacturing ecosystem taking shape — it is a natural progression for Foxconn to expand its capabilities and geographic presence by manufacturing enclosures.

Foxconn’s Expanding Operations in India

Foxconn has accelerated its initiatives within India, recently commencing production of Apple AirPods in Hyderabad for international exports and simultaneously establishing an iPhone production plant in Bengaluru. The production of casings, which typically represents just 2-3% of the overall cost of an iPhone, when conducted locally can significantly lower operational expenses and mitigate the impact of hefty tariffs.

Source&Images

Leave a Reply

Your email address will not be published. Required fields are marked *