Foxconn wants to transfer its production line to India. Gou Taiming will go to India to discuss plant construction.

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 Foxconn wants to transfer its production line to India. Gou Taiming will go to India to discuss plant construction.


This time, foreign media also revealed the specific time, saying that senior executives, including Foxconn Chairman Guo Taiming, will visit India after next months Lunar New Year to discuss related issues.

Screenshots of the Wall Street Journal Report

Late last year, Reuters quoted sources as saying that Foxconn would produce high-end iPhones in India as soon as 2019, such as the current flagship product, the iPhone X series. It said it would be Foxconns first time to produce an iPhone in print, which is expected to help Apple upgrade its printing business to a new level.

At the time, sources also said that the assembly of Apple phones would take place at Foxconns factory in Sriperumbudur, Tamil Nadu. The states industrial minister, MCSampath, said Foxconn would invest 25 billion rupees (about 2.44 billion yuan) to expand its factories and create 25,000 jobs.

Nearly a month later, on January 22, the Wall Street Journal quoted people familiar with the matter as saying that Foxconn currently assembles a large portion of its global iPhones in China, and its executives are studying whether to include an Indian project in its budget plan. People familiar with the matter also revealed that executives, including Chairman Guo Taiming, may visit India after next months Lunar New Year to discuss related issues.

Foxconn said in a statement that it would not comment on existing or potential customers or any products. A spokesman for Apple in India also declined to comment.

India is attracting global technology companies because of its potential as a manufacturing base and a huge emerging market with 1.3 billion consumers, the report said.

Only about a quarter of Indian consumers own smartphones, according to eMarketer, a market research firm. In the past, Apple has been trying to penetrate the Indian market, but with limited success. Apples share of the Indian market in 2018 has dropped from 2% in 2017 to about 1%.

Up to now, Apple has mainly produced low-end models in India. It has assembled low-cost versions of the iPhone SE and 6S models locally through another Taiwan-based factory, Wistron Corp. Foxconn is considering making higher-end, more expensive iPhones in print, according to people familiar with the matter.

However, some analysts said that the relatively high price of the iPhone relative to other brands hindered Apples development in the Indian market to a certain extent. But printing high-end iPhones could help lower prices, because Apple could avoid a 20% tariff increase on equipment imported from China.

According to media reports, Foxconn has five manufacturing plants in Sri City, Andhra Pradesh, India in 2017. It manufactures equipment for millet, Nokia, Kinley and Fukushi, and produces about 15 million smartphones annually.

The report said that although Foxconn has also produced the iPhone in Brazil and other places, the current large-scale production still depends on China. To expand production outside China, Foxconn has been studying Vietnam and India, according to people familiar with the matter. Considering market growth potential, the company prefers India. But the disadvantage of this choice is that Indian workers are not as skilled in precision manufacturing as Chinese workers, and their infrastructure lags behind China. In addition, people familiar with the situation also pointed out that if India wants to produce high-end iPhones, it must take more measures to develop its smartphone supply chain in order to compete with China, and the Chinese government has been trying to push factories up the value chain. Foxconn has also recently revealed that it has cut about 50,000 contract workers at its factory in Zhengzhou, China, since October last year. Foxconn responded by saying that this is to meet the global layout of the group and customer business development needs, the number of employees in different parks is allocated to the groups routine actions. But Foxconn also stressed that in the first quarter of 2019, the group still had more than 50,000 human recruitment needs in some factories in the mainland. Source: Responsible Editor of Observer Network: Qiao Jing_N6607

The report said that although Foxconn has also produced the iPhone in Brazil and other places, the current large-scale production still depends on China. To expand production outside China, Foxconn has been studying Vietnam and India, according to people familiar with the matter. Considering market growth potential, the company prefers India. But the disadvantage of this choice is that Indian workers are not as skilled in precision manufacturing as Chinese workers, and their infrastructure lags behind China.

In addition, people familiar with the situation also pointed out that if India wants to produce high-end iPhones, it must take more measures to develop its smartphone supply chain in order to compete with China, and the Chinese government has been trying to push factories up the value chain.

Foxconn has also recently revealed that it has cut about 50,000 contract workers at its factory in Zhengzhou, China, since October last year. Foxconn responded by saying that this is to meet the global layout of the group and customer business development needs, the number of employees in different parks is allocated to the groups routine actions. But Foxconn also stressed that in the first quarter of 2019, the group still had more than 50,000 human recruitment needs in some factories in the mainland.