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Although Foxconn is expected to receive lower profit margins compared to its iPhone production, it still agreed to the deal to strengthen its relationship with Apple. This move comes as Apple looks to reduce its dependence on China, and the company requested Foxconn to establish a factory in India to achieve this objective.
Apple has been producing iPhones in India for a considerable amount of time now, but the company only recently started assembling the devices in the country, a process that was primarily done in China before.
According to reports, Apple aims to diversify its manufacturing operations beyond a single market to avoid relying solely on China. There have been instances of violent protests at Apple's Zhengzhou factory in China due to dissatisfaction among workers regarding wages, which caused disruptions to the company's production cycle. Additionally, various issues, including Covid-19 restrictions, prompted Apple to explore alternative regions to ensure uninterrupted device production. The company's human rights and data privacy policies have also put it at odds with China.
Currently, Apple manufactures iPhone 12, iPhone 13, iPhone 14, and iPhone SE in partnership with Foxconn and Wistron. While the prices of Apple's smartphones have not decreased, the tech giant's increased manufacturing business in India is expected to significantly benefit the country's economy
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