Proportion of India-made iPhones to double by 2024 while Foxconn’s output in China to shrink, TF Securities analyst says
- Proportion of India-made iPhones is expected to reach 20 to 25 per cent of the total next year if production expansion goes smoothly, TF analyst says
- Foxconn has stepped up efforts to make more iPhones in India amid rising geopolitical tensions and in the wake of the pandemic
India will continue to rise as an iPhone production base in the coming years while Foxconn’s production of the Apple smartphone in China could shrink significantly, according to a research report.
The proportion of India-made iPhones, which account for 12 to 14 per cent of global shipments in 2023, is expected to reach 20 to 25 per cent of the total next year if production expansion goes smoothly, Kuo Ming-chi, a TF International Securities analyst known for his accurate assessment of Apple’s business, wrote in a note on Wednesday.
Apple’s major supplier Foxconn Technology Group, formally known as Hon Hai Precision Industry, currently operates 75 to 80 per cent of the iPhone production capacity in India, according to Kuo’s report.
Foxconn operates the world’s biggest iPhone factory at present in Zhengzhou city in China’s central Henan Province, but Kuo expects production scale there to shrink by 35 to 45 per cent by 2024. The plant’s production was seriously interrupted last year during China’s strict Covid-19 lockdowns.
Its plant in Taiyuan, northern Shanxi Province, could face a whopping fall of 75 to 85 per cent in output next year, according to Kuo’s report.
Meanwhile, Chinese authorities are continuing probes into Foxconn’s facilities in southern Guangdong province and Jiangsu in the east, as well as carrying out on-site investigations into the company’s land use in central Hunan and Hubei provinces.
