Foxconn commences AirPods manufacturing in Hyderabad, India, with plans to expand iPhone production soon for international markets.
In response to the escalating US-China trade tensions and President Donald Trump's tariffs that have now surpassed 100% on certain goods, Apple is looking at India as a strategic manufacturing hub. A major player in this endeavor is Foxconn, a Taiwanese contract manufacturer.
Foxconn has already started the production of Apple's coveted AirPods at its Hyderabad facility for export purposes. The company's larger plant in Bengaluru is set to begin operations shortly, with the aim of increasing iPhone production in India.
This shift towards India is a significant move, as it aims to stabilize the supply chain and potentially decrease iPhone prices that might be impacted by the tariffs. Apple already accounts for 20% of global iPhone production coming from India, with major facilities in Tamil Nadu operated by Foxconn and Tata Electronics, following the acquisition of India factories from Taiwanese contract manufacturers Pegatron and Wistron.
The Bengaluru facility, located in Devanahalli town, will eventually become Foxconn's second-largest facility outside China, with an investment of $2.8 billion (Rs 25,000 crore). Tata Electronics, now a key supplier for Apple, has already started operations at its iPhone factory in Hosur, assembling older-generation iPhones. The plant is expected to begin shipping soon and ramp up production in the upcoming months.
Navkendar Singh, Associate Vice President at IDC India, states, "These are logical and necessary steps to scale up production in India with a medium-term goal of reducing dependency on China, especially given the high tariffs on Chinese products going into the US. With increased production levels leading to higher exports from India, Apple can meet demand for the US, its largest market."
As Apple works towards its goal of shifting over 60 million iPhones annually, including all US demand, to Indian factories by 2026, this strategic move has significant implications for the tech industry and the global economy.
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- Apple, in response to Donald Trump's tariffs and the escalating US-China trade tensions, is strategically shifting its manufacturing hub towards India.
- Foxconn, a major player in this endeavor, has already initiated the production of Apple's AirPods at its Hyderabad facility for export purposes, with its Bengaluru plant set to follow soon.
- This transition aims to stabilize the supply chain, potentially decrease iPhone prices, and reduce dependency on China, especially given the high tariffs on Chinese products going into the US.
- The Bengaluru facility, upon completion, will become Foxconn's second-largest facility outside China, with an investment of $2.8 billion (Rs 25,000 crore).
- Tata Electronics, now a key supplier for Apple, is already operational at its iPhone factory in Hosur, assembling older-generation iPhones for export.
- Navkendar Singh, Associate Vice President at IDC India, suggests these steps are necessary to scale up production in India, with a medium-term goal of meeting demand for the US, Apple's largest market.
- This strategic move by Apple, as it seeks to shift over 60 million iPhones annually to Indian factories by 2026, has significant implications for the tech industry, global economy, and, as reported by our website App, business news in India.
