Apple’s India push deepens with Foxconn locally producing iPhone casings- Details
Apple is gradually increasing its manufacturing and assembly centres in India to develop iPhones. As it continues to deepen ties with the country, Apple’s Taiwanese-based manufacturing giant, Foxconn, is in talks to produce iPhone casings locally in India. The company is also building a new manufacturing unit in the country to develop the metal-based casing for the iPhone, making a huge step for Apple as well as India. This move is expected to be beneficial for India as it deepens the country’s position in the global market and also encourages the growth of local suppliers. On the other hand, it will reduce Apple’s dependence on China for manufacturing major iPhone components and shipping them to the US at a much higher price, considering the growing tariffs in the country.
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Foxconn to produce iPhone casing in India
According to an Economic Times report, one of Apple’s major manufacturing companies, Foxconn, is building a new unit in ESR Industrial Park in Oragadam, Tamil Nadu. This new manufacturing unit will solely focus on developing metal chassis for iPhones. Earlier, these metal casings were developed by Tata Electronics for Apple. However, now Foxconn is also reported to contribute, and the construction of the new unit is already in the works.
But what does it mean for Foxconn? Well, it suggests that it will contribute to a greater percentage of iPhone production, which is done locally. Although the physical casing of the iPhone contributes to only 2 to 3% of the total cost of developing an iPhone. While Apple is growing ties with India, US President Donald Trump is not very happy with the move.
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In previous interactions with Tim Cook, the President clearly stated that he is not very happy with Apple assembling and exporting iPhones from India or any other country in the world. Trump plainly stated, “I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
However, the warning is surely not affecting Apple as it continues to build iPhones in India and ship them to the US at a much lower price. However, with rapidly changing decisions and traffic by the US government, it is unclear how long the decision will last and how it will affect Apple and the end buyers.
