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Revealed : iPhone12 to be made in India by Taiwanese supplier;Shifting from China

Hon Hai Precision Industry Co Ltd,doing business as Foxconn Technology Group and better known as Foxconn, is a Taiwanese multinational electronics contract manufacturer with its headquarters in Tucheng, New Taipei City, Taiwan.The Apple supplier ,Foxconn will start to assemble the iPhone 12 in India.This would be the first time ever the premier device would be made outside of China.

Apple’s new 5G-enabled iPhone will be made at their factory in the southern Indian state of Tamil Nadu .It is estimated that 7% to 10% of Chinese production will be shifted to India.Foxconn has not publically made official comments on the move . There were already media reports that Apple was planning to make India and Vietnam,alternative production hubs.Apple gives the contract forproducing iPhones to three Taiwanese companies: Foxconn, which trades as Hon Hai Precision Industry,Pegatron and also Wistron. They produce 200 million units a year, with Foxconn having the major production of roughly 60% of the aggregate.

China’s labor costs  are soaring and the sanctions that may come out of the US due their tumultuous bi-lateral relationship seems to be the motive to lessen the dependence on China. The company has been in talks with Apple for shifting out of China.India has become a preffered location for shifting. As U.S.-China tensions came to an all-time high last year, the Indian government was quick to lay down the red carpet for multinationals looking to shift from China.

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All major phone manufacturers will receive annual subsidies equal to 4% to 6% of added sales for the next five years. Pegatron and Wistron decided to expand to India. Indian iPhone production is trending toward the upside as the result. This is also happening in Vietnam.Foxconn will begin iPad and Macbook production out of China for the first time in the Vietnam this year. Pegatron expanded to Vietnam in March .Apple has told its suppliers in China and Taiwan that it is curtailing fresh orders for all iPhones for the first half of 2021 by around 20% with the majority coming from the iPhone 12 mini.

 

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