Foxconn is Apple’s prime contractor. The company bases most of its production in China, but as tensions with the United States increase, Apple’s production is shifting to other countries. Foxconn has just announced a $500 million investment in India to expand its work there.
The company is already present in Indonesia, specifically building several iPhones there. According to information from the Wall Street Journal, Apple intends to increase its development in countries other than China. In addition Indiawhich already has a high level of development, Vietnam is a very good candidate for Apple.
In addition, the state offers huge tax advantages to Apple brand subcontractors so that they open factories in the country. Apple’s dependence on Chinese production isn’t going to stop overnight, but recent events (political and health) have forced Apple’s decision.
With the newly announced confinement in the Middle Kingdom, Apple’s production, in particular iPhone 14 Pro maybe not enough for holiday season. This is the first time the apple brand has found itself in such a situation.
China is no longer the only solution
The health restrictions in addition to the recent shortage of semiconductors have caused a lot of thought on Cupertino’s part. The company wants to get out of China’s vice and manufacture iPhones across the Asian continent. The big question for Apple remains whether customers who don’t have phones under the tree will buy them in the coming months.
During a recent telephone meeting with investors, Tim Cook assured that the Apple brand is working “very hard” to keep pace with demand for the iPhone 14 Pro and Pro Max.
By: Keleops AG
