- Foxconn’s Sruperumbudur factory expansion to take three years to complete and this will create 6,000 new jobs
- Apple wants Foxconn to shift some of its iPhone production out of China so it stays in the clear in case the US-China trade conflict escalates
- Foxconn operates a separate plant in Andhra Pradesh, where it manufacturers smartphones for Xiaomi and HMD Global (Nokia), among others
Foxconn is reportedly planning to invest $1 billion (about Rs 7,516 crores) in expanding its Sruperumbudur, Tamil Nadu factory in India. This will take three years to complete and will open up 6,000 new jobs, according to a Reuters report citing sources. Apple wants to reduce its reliance on iPhone production out of China so it stays in the clear in case the US-China trade conflict escalates. Sruperumbudur factory is where Foxconn makes iPhone XR and is planning to make other models as a part of the expansion.”There’s a strong request from Apple to its clients to move part of the iPhone production out of China,” one of the sources cited in the report said.
Foxconn operates a separate plant in Andhra Pradesh, where it manufacturers smartphones for Xiaomi, among others. Foxconn Chairman Liu Young-way said that it would ramp up its investment in India, however, hasn’t divulged into details. Neither Apple nor Foxconn commented on the report at the moment.
Apple is in talks with the Indian government to invest in smartphone production in India – it plans to make iPhones worth $40 billion (over Rs 3 lakh crores) in the country and wants to turn India into an export hub. This would be a multi-year project and will benefit from the government’s performance-linked scheme that gives companies incentives worth up Rs 50,000 crores for boosting local manufacturing and meeting annual targets for the next five years.
Separately, Apple is gearing up to unveil iPhone 12 series later this year. The latest report suggests that the standard iPhone 12 price may be slightly higher at $50 (around Rs 3,750) compared to the iPhone 11 models. This means the standard iPhone 12 base model will cost $749 (around Rs 56,000). The iPhone 11 base model was launched at $699 (approx Rs 52,500), which is $50 cheaper than iPhone XR from 2018. However, it isn’t clear if the price hike will be extended to Pro and Pro Max models. This new report contradicts Jon Prosser’s leak, that claimed the iPhone 12 will start from $649. The price hike is a result of 5G and OLED display.