The Indian government has today announced that Foxconn has broken ground on $500M worth of new iPhone plants in Telangana, in the south of the country, as Apple continues its efforts to move more production out of China.
At least one of the plants is also expected to manufacture AirPods, after Apple offered Foxconn a new contract for these back in March …
Apple’s continuing shift away from China
The need for Apple to reduce its dependence on China as a manufacturing center has been clear for many years, but the impact of the pandemic at the world’s biggest iPhone assembly plant really underlined the problem. The COVID-19-related disruption was estimated to have cost the company a billion dollars per week.
India is seen as Apple’s main hope when it comes to relocating production outside of China. A report last year suggested that a quarter of all iPhones could be made in India by 2025, and a later one indicated that this could rise to half of all iPhones by 2027.
For the iPhone 15, Apple is hoping that assembly will begin in China and India simultaneously. We learned in February that a new Foxconn plant in India looks set to be about half the size of the massive iPhone assembly facility in Zhengzhou, China – colloquially known as iPhone City.
Foxconn breaks ground on new iPhone plant
India’s industry and commerce minister today tweeted that the company has broken ground on a new iPhone plant.
Foxconn chairman Young Liu suggested that its production there should able the company to double its revenue in the country. The region prides itself on “Telangana Speed” – the rapid response of its regional government to new business plans.
AirPods also reported to be part of the plan
Foxconn is also expected to make AirPods at one or more of the new plants. Back in March, the company got the first ever contract to make Apple’s headphones in India.
A new deal between Foxconn and Apple will see AirPods manufactured in India for the first time. Via Reuters, Foxconn is investing $200 million in a new factory in India that will produce Apple’s wireless earbuds, among other products.
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