Further reports emerged Tuesday that Foxconn will begin assembling iPhones in India. The move, if confirmed, would mark a significant shift away from China for both Apple and the Taiwanese manufacturer.
Moving Away From U.S.-China Trade Tensions
The Wall Street Journal reported that senior executives at the firm would head to India in February to discuss a potential move. The delegation could even include Foxconn Chairman Terry Gou. Production could be shifted in light of the ongoing tensions between China and the U.S.
The move could be good news for consumers. Apple would avoid the 20% imposed on devices imported from China if if it manufactured them in India instead. Therefore, it could reduce the cost of high-end iPhone models
Apple has previously built low-end iPhone models in India. This includes the iPhone 6S, which was manufactured in India by Wistron, not Foxconn. Foxconn already produces smartphones for Xiamoi in India. In December 2018 it was reported that the iPhone X could start to be assembled in India in 2019.
Nice find, Charlotte.
I particularly appreciate the callout of Apple having already conducted iPhone manufacturing in India. I’m not sure how widely known this is, or even if many appreciate the current distribution of Apple’s manufacturing base.
India’s technological prowess remains largely under-appreciated in the West, despite their having made remarkable strides in energy, computer/electronic including AI, military, transportation, manufacturing and aerospace industries, and has one of the fastest growing middle class sectors worldwide.
This story further erodes the notion that Foxconn is Chinese, or an exponent of Chinese Communist Party political will. And yes, not only would the move avoid the 20% tariff associated with the ongoing Sino-USA trade war, it may provide a safer manufacturing harbour for both Foxconn and Apple for the foreseeable future. .