Since last year, affected by international economic and trade frictions, tariff costs and other factors, Apple has repeatedly asked its two generation factories Foxconn and Heshuo to move the production place of iPhone out of China, but with little success.

On January 7, Subhash Desai, Minister of industry of Maharashtra, India, said that the plan to cooperate with Foxconn to establish an electronic product manufacturing plant in the region had been cancelled.

According to Subash Desai, the reason for canceling the cooperation is that “Foxconn has an internal dispute with apple”.

Apple's plan to assemble a high-end iPhone in India may be cancelled

Foxconn then responded that “the report of ‘internal dispute’ with apple is untrue, and India’s production plan is moving forward.” However, he did not deny that the new factory was not going to open.

As Apple’s largest supplier, most of the world’s iPhones are produced by Foxconn’s factories in China. However, at the request of apple, Foxconn planned to invest in new factories in India, Vietnam and other places early last year, including investment in the production of iPhones in India, which may create as many as 25000 jobs. Whether Foxconn has an internal dispute with apple or not, India obviously does not want to see Foxconn’s new factory in India fail.

At present, Subash Desai and Foxconn have their own opinions. The construction of Foxconn’s new factory in India may have been stranded, but it is obviously difficult to change Apple’s plan to assemble high-end iPhones in India through contract manufacturers.

According to third-party data, India will become the only country with smartphone growth in 2019; The sales volume of smartphones in India is expected to reach 1.25 billion in 2018, with a year-on-year increase of 1.2 billion. Domestic oppo, vivo, Xiaomi and a number of ODM and industrial chain manufacturers have set up factories in India and expect to layout in India in advance to seize the market.

For Apple’s product manufacturing in India, only Wistron India factory assembles low-cost iPhone Se and other models locally. Apple has always planned to realize the assembly of high-end iPhone through Foxconn’s factory in India. At present, the plan is being blocked, and Foxconn’s new factory in India is in suspension.

In addition, Heshuo, which accounts for about 30% of Apple product assembly OEM orders, is the second largest apple OEM outside Foxconn. At the beginning of last year, the company also announced that it plans to build new factories in India, Vietnam and other places, but the specific progress of investment and construction has not been announced so far. At present, Apple’s plan to assemble high-end iPhones in India has many obstacles, and the high-end new iPhones will probably return to China this year.  

Responsible editor; zl

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