24 August 2020
Foxconn is reportedly planning to invest $1 billion in its manufacturing facility in India. The main goal of the investment is to increase the iPhone production in India as it looks to reduce dependency on China. The report is coming from Reuters citing two sources familiar with the plan developments.
The investment will be made at Foxconn's plant in Sriperumbur, Tamilnadu. It is the same plant that is currently being used for producing iPhone XR models locally. The huge investment will be used for expanding the plant's manufacturing capacity as well as for producing different models simultaneously. The whole expansion is expected to get completed within three years and will eventually create 6,000 job opportunities.
It was reported about a couple of months ago that Apple was looking to move its 20% manufacturing from China to India. It seems like Foxconn's investment plans are related to the same goal. It is a well-known fact that trade relations between the United States and China are not exactly smooth. Huawei is already facing the wrath of the ongoing situation between the two countries.
Another important reason for Apple to shift its focus to India is that it is one of the world's biggest smartphone market. Even though Apple has a dedicated fan base, there are also many fans who want to buy an iPhone but cannot because of the expensive pricing. It even released the iPhone SE (2020) for buyers on a tight budget but it still costs higher than many other markets. This is where the local manufacturing comes into the picture as it will help the company save money on import duties and thus price iPhone models relatively cheaper.