$1 billion investment could see more iPhone assembly moved to India
Apple supplier Foxconn is set to invest $1 billion in Indian iPhone assembly, according to a report from Reuters that cites Apple’s push to diversify its supply chain in an effort to reduce its reliance on Chinese manufacturing.
“There’s a strong request from Apple to its clients to move part of the iPhone production out of China,” one of the sources with direct knowledge of the matter told Reuters. The investment could bring 6,000 jobs to the country, with plans to expand Foxconn’s existing facilities located in Sriperumbudur, where some iPhone XR models are currently made.
The three year plan would allow a wider range of products to be produced in the country, and could lead to lower prices for Indian consumers where the iPhone accounts for only 1% of smartphone sales.
Apple recently announced it will open its first Apple Store in India during 2021, with an official online store launching later this year.
Earlier reports claimed up to $40 billion worth of smartphones could be made in the country by contract manufacturers Wistron and Foxconn, who already handle iPhone production for Apple across China. The decision to move more production to India is said to be linked with the country’s PLI scheme, which was introduced to boost local manufacturing of electrical products, particularly smartphones, plus the import duties on Chinese goods arriving into the United States.