Each day, it becomes clearer: Apple really wants to get rid of its dependence on China – and India seems to be the most likely route in this process. We have already talked about the Apple negotiations with the Indian government and several rumors of products being made there; because, in the last days, the Reuters arrived with news.
The news agency said the Foxconn, one of Apple’s largest partners, will invest $ 1 billion expanding its facilities in Sriperumbudur, southern India. The initiative, according to the report, came after great pressure from Apple – in these same facilities, Foxconn has been manufacturing the iPhone XR for over a year.
The expansion of the facilities will take three years and, when completed, will employ more than 6,000 people in the region. Apple and Foxconn have not commented on the matter, so there is no further details on the products to be assembled at the factories; even so, it seems that more models of iPhones will start to be manufactured in Indian territory.
The initiative could bring two positive effects for Apple in one move: the first, as mentioned above, would be to reduce the company’s dependence on China – a source heard by Reutershe even said that «there is a great demand on the part of Apple for its suppliers to move part of the production of iPhones abroad». With this, the Cupertino giant diversifies its production chain and, even more importantly, makes sure that a possible new trade war between the United States and the Wall Country does not affect its business very strongly.
The other positive effect of the initiative would be another nod from Apple in relation to the Indian government. Prime Minister Narendra Modi’s administration is highly protectionist, focused on valuing local manufacturers and investing in the country; with this $ 1 billion from Foxconn (stimulated by Apple), Cupertino’s relations with New Delhi are expected to become even more friendly.
It is worth remembering that the first Indian Apple Store is promised for next year – plans may be postponed due to the new Coronavirus, but that the store will arrive at some point, it will arrive. The expansion of Foxconn’s factories in the country, therefore, will be very convenient for this onslaught of Apple over there.