Foxconn plans to make up to 30M Apple iPhones in India in 2025 - report
Seeking Alpha News (Mon, 31-Mar 11:04 AM)
Foxconn Technology (OTCPK:FXCOF) plans to manufacture about 25M to 30M Apple's (NASDAQ:AAPL) iPhones at its facilities in India this year, over double the number it made last year, The Economic Times reported, citing people with knowledge of the matter.
The developments come amid Apple bolstering its manufacturing in India as it seeks to diversify its supply chain base beyond China.
“Last year, the company assembled about 12 million iPhones in India,” said one of the persons. “But with their Bengaluru facility also coming up quickly, they have set their ambitions a lot higher, in line with Apple’s push to deepen their presence in India,” the report added.
Apple and Foxconn did not immediately respond to a request for comment from Seeking Alpha.
The Apple (NASDAQ:AAPL) supplier — which is formally known as Hon Hai Precision (OTCPK:HNHAF) (OTCPK:HNHPF) — has been carrying out limited trials at its 300-acre campus in Bengaluru in the Indian state of Karnataka, in the last three-four months, signalling swift progress as the Taiwan-based company expands its manufacturing presence in the country, the report noted. The trial runs are currently in the first phase.
The trials are to check if the facility — which will be its second-largest facility after China — can make the phones at the required scale and without any compromise on Apple’s strict quality standards, the report added.
“Only when the trial runs are successful will Foxconn be able to move on to the ‘revenue build’ phase where the phones are ready to be shipped. Beginning shipments from the Bengaluru facility will be a key component to achieving Foxconn’s production target,” the report noted.
Foxconn intends to make about 25M to 30M iPhones in India by the end of this year. Last year, Apple had shipped about 10M to 15M iPhones from India, the report added, citing estimates from Analyst Lori Chang at Taiwan-based Isaiah Research.
Chang expects the proportion of iPhones produced in India to increase to 21% to 25% this year, compared to last year’s target of 12% to 16%.
Earlier this month, it was reported that Foxconn expects its server revenue to exceed its revenue from Apple's (AAPL) iPhones within two years.
Apple is also diversifying the manufacturing of other products, such as the AirPods, in India. Last year in December, it was reported that Foxconn's unit would begin assembling AirPods at a new factory in the Indian state of Telangana around the first quarter of 2025.
More on Foxconn
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- Foxconn expects server revenue to exceed iPhones revenue in 2 years - report
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- Historical earnings data for Foxconn Technology Co., Ltd.