iPhones set for takeoff from new Foxconn unit
's Taiwanese contract manufacturer
Foxconn
is poised to begin shipments of iPhones from its new unit in
Karnataka
as early as June, according to people aware of the developments, who said final checks are ongoing to start commercial shipments.
Last week, 'a senior Apple operations executive from its headquarters in Cupertino visited both of its suppliers — the Foxconn unit in Bengaluru as well as the
Tata Electronics
facility in Hosur to check the progress and preparedness of the plants ahead of the upcoming launches,' said a person cited above.
The visit by the high-ranking Apple executive to the sprawling 300-acre Foxconn facility in Devanahalli on the outskirts of Bengaluru was timed as a review of operations ahead of the likely launch of
iPhone
shipments next month.
This new plant is set to emerge as the second-largest Foxconn facility, after its Chinese unit, for the manufacturing of the iconic iPhones.
'Foxconn's unit in the Devanahalli Information Technology Investment Region (ITIR) is almost ready for launch,' said MB Patil, Karnataka's minister for large and medium industries, who expects the commencement of operations to boost state's prospects 'for attracting more foreign investment without compromising the interests of any stakeholder'.
Queries sent to Apple, Foxconn and Tata Electronics remained unanswered till press time.
These latest developments come even as Apple faces pushback from Washington DC for its aggressive manufacturing push in countries like India and China. On Thursday, US President Donald Trump said that he has asked Apple CEO
Tim Cook
to not build and expand
the company's manufacturing operations in India.
However, the government officials and suppliers alike say plans remain on track, adding that there has been
no communication from Apple
to halt or pause the diversification of contract supply away from China, as ET reported on Friday.
'We believe that Apple could ramp up iPhone assembly production in India up to 60–65% by fall in a best-case scenario but could easily pivot back to a China-driven iPhone strategy depending on the tariff situation and deal negotiations,' Daniel Ives, global head of technology research at Wedbush Securities said in a report on Friday.
'We see no chance that iPhone production starts to happen in the US in the near term given the upside-down cost model and Herculean-like supply chain logistics needed for such an initiative,' he wrote.
To be sure, analysts expect more pressure from the Trump administration on Apple to build iPhone production in the US. However, any such move would result in an inflated iPhone price point of about $3,500, as per Wedbush Securities, making the proposition a non-starter for the Cupertino-based company.
'Foxconn will have to ramp up its India capacity by at least five times,' said Neil Shah, vice president at Counterpoint Research, 'with almost all iPhones for the US market likely to be produced in India, depending on how the sanctions negotiations go and if Apple plans to move to India completely.'
The Taiwanese firm would want the production to take off from the Bengaluru plant as soon as possible as it is 'critical for Foxconn to maintain a lion's share of iPhone production and PLI incentives,' Shah said.
ET reported
on March 31 that Foxconn was planning to produce up to 25–30 million iPhones at its India plants in 2025, more than double it made last year.
The company had been conducting limited trials at its Bengaluru campus for about four months at the time, progressing swiftly towards the 'revenue build' phase where the phones were ready to be shipped.
Broader Portfolio
Earlier on May 1, Apple CEO Tim Cook said that for the June quarter, the company expects a majority of iPhones sold in the US to have
India as their country of origin
.
Foxconn has operations across Tamil Nadu, Karnataka and Telangana. Apart from the Bengaluru unit, the Taiwanese major has opened a new unit in Hyderabad to make AirPods, reflecting the widening of the Apple portfolio in India. This is in addition to its existing large-scale operations at its Sriperumbudur campus near Chennai where the bulk of iPhone assembly takes place currently.
Apple's other major supplier Tata Electronics, which has a facility in Hosur, makes enclosures for iPhones. The electronics manufacturing arm of the Tata Group has been
scaling expeditiously
and has acquired the Indian arms of other Apple suppliers — Wistron and Pegatron.
'We believe Apple has put itself in a very hedged supply chain strategy heading into iPhone 17 production this Fall,' said Ives.
'All of our work in the supply chain throughout Asia over the past few weeks gives us a high level of confidence that Cupertino's aggressive push towards India production has been a very smart strategic move given the uncertain tariff environment facing Apple in China,' he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
22 minutes ago
- Economic Times
Tesco to set up distribution centre in Karnataka, create 15,000 jobs: Industries Minister MB Patil
Synopsis Tesco is set to establish a new distribution center in Karnataka, generating 15,000 jobs, while Rolls-Royce considers further investments in the state. This development follows the India-UK Free Trade Agreement, poised to significantly increase bilateral trade. The agreement is expected to boost commerce and benefit consumers and industries in both the United Kingdom and India. TIL Creatives Representative Image United Kingdom-based retail major Tesco will open a new distribution centre in Karnataka, creating 15,000 jobs, state's Large and Medium Industries Minister MB Patil said on Tuesday. UK engineering giant Rolls-Royce is also exploring fresh investments in the state, the minister added, assuring that the government will fast-track clearances for these projects. Patil was speaking at a reception hosted by the British Deputy High Commission to mark the signing of the India-UK Free Trade Agreement (FTA). He said the pact is expected to boost bilateral trade by £25 billion annually and nearly double it to £90 billion by 2030, enabling duty-free access for 99% of Indian exports to the UK and 90% of UK exports to India."This would mean more affordable products, greater market access for businesses, and a surge in commerce benefiting consumers and industries in both countries," Patil said. The minister added that other British firms such as BAE Systems, ARM, HSBC and Aviva already have a significant presence in Karnataka, employing about 30,000 people. Patil invited UK-based firms to leverage the state's technology capabilities, robust infrastructure, and industry-friendly ecosystem.
Economic Times
22 minutes ago
- Economic Times
Textiles minister sets up 4 committees on market diversification
Synopsis India's textile industry aims for $100 billion in exports by 2030, despite challenges like the US's 50% tariffs. Minister Giriraj Singh has formed committees to explore new markets and enhance competitiveness. Exporters are encouraged to focus on the EU market, which is larger than the US, as India negotiates a Free Trade Agreement. IANS New Delhi: Despite global challenges, the Indian textile industry will achieve a target of $100 billion exports by 2030, textiles minister Giriraj Singh said Wednesday. Amid the US' 50% steep tariffs, he setup four committees to submit recommendations on diversification into new markets, textiles ministry said in a committees are on fiscal and ease of doing business measures, structural reforms in the textile value chain, enhancing cost competitiveness and innovation, and achieving $100 billion exports by chaired a high-level meeting with leading stakeholders from the textiles and apparel industry to review the evolving global trade situation, including the recent announcement of reciprocal tariffs by the US, and to chart a confident, future-oriented strategy for the sector. 'The minister urged exporters to actively explore the EU, which collectively imports textiles worth $268.8 billion—more than twice the size of the US market. India is actively engaged in FTA negotiations with EU,' the ministry said. Textiles would be one of the worst impacted sectors due to the tariffs. Last week, US President Donald Trump signed an executive order doubling the tariffs on US' imports from India to 50%, the highest on any country and at par with Brazil, in a move marking an escalation of trade tensions between the two the initial 25% duty came into effect last week, the additional 25% is effective August 27.
India.com
22 minutes ago
- India.com
Asim Munir, Yunus, Pannun...: How US is laying a trap to encircle India on all sides; experts say New Delhi paying the price for...
(File) India-US relations have hit their lowest point in the last two decades, especially since US President Donald Trump began his newfound tryst with Pakistan, spewed anti-India rhetoric, and ultimately imposed 50% tariffs on Indian goods. However, experts believe that the seemingly radical shift in US' stance against India is not sudden, but has been simmering for years since the previous Biden administration, as Washington is reportedly upset with New Delhi for not taking an aggressive stance against China, which is what the US wanted. What was US' plan for India? According to US strategic experts, Washington had plans to prop up India as a regional proxy against China, but New Delhi strategically avoided landing in such as situation in view of its geographical, economic and strategic constraints. New Delhi believes fighting a direct war would cause long-term economic loss, and avoided confrontation with Beijing, a policy which reportedly frustrated the Biden administration, who wanted the QUAD alliance of India, US, Japan, and Australia, to become a bulwark against China, says American geo-strategist Rust Kohle. However, India did not fall into the US trap and always refrained from positing the QUAD as a military alliance akin to the US-led NATO, he said. Kohle revealed that in 2024, the Biden administration decided that the US will not help India's development if New Delhi doesn't stand against China, and the Trump administration has taken that policy to a whole another level by essentially downgrading India-US relations. Why US wanted to pit India against China? Notably, all four QUAD members have their own issues with China. Japan has territorial disputes in the East China Sea and conflict with China over sea routes, while Australia's problems are related to trade, investment and political interference. The US wants to maintain its military dominance in the Indo-Pacific and freedom of navigation in the South China Sea and Taiwan, while India's issues with Beijing are multifaceted as the two countries share borders. However, none of the QUAD nations are ready to open a joint, aggressive front against China, with Australia, Japan, and US wanting to pit India against Beijing without openly siding with New Delhi. There is a broad consensus among Indian and American strategic experts that New Delhi is paying for not towing the US' line as Washington is now exacting 'vengeance' by surrounding India with hostile forces from all sides, including support for Khalistani Sikh separatists like Gurpatwant Singh Pannun, an anti-India regime led by Muhammad Yunus in Bangladesh, and building closer ties with Pakistan Army Chief Asim Munir. How India can prepare for eventual face-off with US and China? Analysts believe that India needs to achieve self-reliance in defense manufacturing if it hopes to confront two superpowers like US and China in the near future. 'India's biggest challenge is to avoid confrontation with both US and China, but at the same time maintain its strategic autonomy. New Delhi needs a new, more careful method to implement its 'multi-alignment' policy,' says Dr. Manan Dwivedi, Professor, Indian Institute of Public Administration. Meanwhile, renowned Indian geo-strategist Dr. Brahma Chellaney has raised questions about the future of QUAD, saying that it seems highly unlikely that US President Donald Trump would visit India for the QUAD summit later this year. Experts believe that an open confrontation with China can take a toll on India's economy, border security and regional relations, while distancing itself from the US will have a profound impact on the country's technology, defense and investment. Thus, experts suggest that India needs to walk a fine line to maintain strategic yet cautious ties with both Beijing and Washington, while avoiding a complete alliance with either country.
