Apple’s contract manufacturers in India eye expansion amid China curbs

Amid ongoing Covid curbs and a slowdown in iPhone manufacturing in China, Apple’s contract manufacturers Foxconn, Wistron and Pegatron are adding more assembly lines to their facilities in India, The Economic Times reported.

While the manufacturing slowdown is largely because of the upcoming Chinese New Year, the ongoing lockdown in Foxconn’s plant in Zhengzhou province, the largest manufacturing facility for iPhones in the world, has put Apple’s heavy reliance on China under the spotlight.

However, industry executives familiar with the matter told ET that the ongoing lockdown in Zhengzhou wouldn’t have much bearing on Apple to shift manufacturing to India for logistical reasons. They added that the US smartphone major would find it more convenient to shift production to some other areas within mainland China than to India.

“I see the shift to India happening independent of the current context. The Make in India momentum (for Apple) will continue to gain traction,” Prabhu Ram, head of the industry intelligence group at CMR, told the publication. “In fact, Foxconn is already shifting production to Shenzhen to tide over the cuts.”

Navkender Singh, associate vice president, IDC India, said shifting production from China to India in the near term is complicated and time-taking.

Some see Apple’s expansion in India in relation to the expected labour shortage in China during the Chinese New Year in February. “All three of Apple’s Indian contract manufacturers are expanding capacities to take up more production,” one of the executives told ET.

Apple has shown interest in the Indian market, and its partners have begun setting up bases in the country. Apple first began assembling iPhones in India in 2017.

Gradually, its partners ramped up production, supported by the government’s financial incentives programmes. For instance, Foxconn began making the iPhone 14 in India in September of this year, just weeks after its global unveiling.

Foxconn and Pegatron have set up their bases in Tamil Nadu, while Wistron makes iPhones out of Bengaluru.