Apple's Largest iPhone Supplier Investing $500 Million in India as Supply Chain Diversification Continues - MacRumors
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Apple's Largest iPhone Supplier Investing $500 Million in India as Supply Chain Diversification Continues

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Foxconn, Apple's largest supplier, has invested $500 million in India to bolster its production capabilities in the country as the Cupertino tech-giant and its partners ramp up efforts to diversify the supply chain, South China Morning Post reports.

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The report cites documents filed in the Taiwan Stock Exchange which show that Foxconn has invested $500 million into its Indian subsidiary in hopes of increasing its production capacity in India. Foxconn already has an existing presence in the country, producing select iPhone models, including the iPhone 14 with reported plans to make other products, such as the iPad.

The Wall Street Journal reported last week that Apple was making more aggressive plans to move its supply chain solely out of China and into other countries such as India and Vietnam. Apple warned last month that the supply of iPhone 14 Pro models would be heavily constrained due to ongoing disruption to Foxconn's iPhone production plants in China.

Ahead of the holidays, the supply of Apple's highest-end iPhone models remains heavily limited, with the company's online store estimating a three-week wait for customers looking for the latest iPhone. Apple CEO Tim Cook said during the company's last earnings call that it's "working hard" to meet the demand for the iPhone 14 Pro and iPhone 14 Pro Max.

Tags: Foxconn, India

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Top Rated Comments

GuruZac Avatar
GuruZac
43 months ago
Diversification is great. Keep the exodus from China going.
Score: 12 Votes (Like | Disagree)
gleepskip Avatar
gleepskip
43 months ago
Diversification is great. It would be even better if Apple worked with another manufacturer other than Foxconn, which could become property of the CCP should China decide to annex Taiwan.
Score: 7 Votes (Like | Disagree)
V
vikingjunior
43 months ago
Why is it Toyota can assemble cars in America but Apple can’t assemble phones in America?

Amazing we a cheering another American company using foreign labor.

Spare me the iPhone would cost $2000 rhetoric.

The U.S. should start taxing the crap out of American companies that use over 50% of foreign labor.

Crazy folks just support rich people getting richer.
Score: 6 Votes (Like | Disagree)
one more Avatar
one more
43 months ago
Diversification is great, also looking forward to that rumoured European manufacturing site. 4-5 serious manufacturing hubs worldwide would be good.
Score: 6 Votes (Like | Disagree)
M
mannyvel
43 months ago
Good for Apple.

There are people who say iPhones can't be assembled in the US because the US lacks whatever. The fact is, India, Vietnam, and India also lacked those until an effort was made to build out that chain.

Not assembling (that's assembling, not manufacturing) in the US is purely a cost decision. Saying it's impossible to do is incorrect. Saying it's not cost-effective given what Apple wants its margins to be is more accurate.

I mean seriously. Do you really think Apple runs down to the local store to buy 5 million pentalobe screws at the last minute? No, they don't. Do you think they have an emergency order for 20,000 LED panels for their iPhone, or 60k extra proximity sensors because "they forgot?" No they don't.
Score: 5 Votes (Like | Disagree)
L
Little Endian
43 months ago

The infrastructure to support the assembly in the US does not exist for the phone. Think of all of the fasteners etc in a phone. These aren’t made here. So all of those parts would need to be imported.
Labor is also a huge issue. The min wage in China is 2590RMB or only $372/month. Even if you triple that number for Foxconn employees, you are still well below labor rates in the US (by a factor of 2 and that does not include fully loaded costs on US labor).
Thank you!! For explaining reality!! As lovely as bringing consumer electronics manufacturing to the USA may sound it really isn’t a feasible reality.

Auto Manufacturing in the USA by foreign brands does not compare to consumer electronics manufacturing. The US has always maintained domestic auto manufacturing abilities. Also the labor cost differential of assembling a vehicle in Japan or Germany vs. The US is nowhere near as great of a cost difference.

Think about it this way. Toyota, Honda, VW, Mercedes etc can competitively assemble vehicles in the US because they would be paying their own Japanese or German workers roughly similar wages anyhow. Building in the US doesn’t cost much more or less (labor wise) and much of any cost differences can be made up through tax breaks, shipping savings etc.
Score: 5 Votes (Like | Disagree)
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