Apple’s primary manufacturer of iPhones – Foxconn is readying to start the production of new iPhones in Karnataka, India from next year onwards.
The local government has decided to hand over the land necessary for setting up a manufacturing plant soon, with the hopes of creating 50,000 jobs for Indians. Foxconn’s new set-up will help Apple reduce it’s reliance on China, amid it’s tensions with the US.
iPhone Manufacturing in India
Though Apple has many product suppliers and manufacturers, Foxconn is an important player in it’s supply chain. The Taiwanese manufacturer takes care of the majority of iPhone production, with production plants set up across major countries.
China is one among them, where Foxconn manufactures newer models of iPhones every year. But with the trade tensions between Beijing and Washington escalating as of lately, Apple is seeking to manufacture it’s products outside of China as much as possible.
In this pursuit, Apple sees India as a viable option. So does Foxconn, which is investing heavily in India lately. After a plant in Tamil Nadu, the Taiwanese company is investing $700m in a new factory in Karnataka, India. This local government has valued the new plant at $1.59bn which would create about 50,000 jobs.
Foxconn bought a 13 million sqft of land near Bengaluru city last month, which the Karnataka government is set to hand over next month. Once taken, Foxconn is set to start the manufacturing of newer models of iPhone from April 2024, with a target of 20 million units a year.
Though Apple is a global leader in the smartphone business, it struggles to make an impact in the Indian market. The Indian subcontinent is dominated by much-cheaper Android alternatives from South Korean and Chinese OEMs and Apple plays a tiny role in the local market.
Well, with these local manufacturing plans, Apple and the Indian government hope to see price cuts for iPhones, which may result in more people picking up the Apple smartphones.
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