Several years ago Apple decided to open manufacturing plants in India, understanding that it is one of its best allies for being an emerging market where they are growing at a dizzying pace. So much so that it is helping to mitigate the recession they are suffering in China due to the decline in iPhone sales.
Foxconn is its main partner in both territories and is the one who will assemble practically all the iPhone 16 production that will be sold in India. However, in recent weeks there have been reports of some expansion plans in China that could be playing against Apple’s interests.
Apple and Foxconn, two friends with different intentions
Taiwanese Foxconn specialises in assembling all kinds of technological products and counts Apple as one of its most important customers. It is a mutually beneficial marriage, since while dependence on Apple brings them great benefits, the Californians are also interested in agreements that reduce costs.
So much so that when Apple decided to move to India, it did so with the help of this manufacturer, who opened a gigantic plant in the country. They currently have further expansion plans with the idea that, in the future, these factories will not only supply products to the region, but that worldwide we will be able to find devices such as the iPhone that have that “made in India” (although we already know that Apple is more into putting “Designed by Apple in California”).
However, and quite legitimately despite sharing certain objectives, Foxconn also seeks to grow in China. This has been demonstrated with Recent announcements such as the multi-million dollar agreement with the Chinese region of Henan in which the Taiwanese manufacturer intends to open a gigantic plant in which to focus on the assembly of other components for electric vehicles, batteries and even devices for digital healthcare.
The risks that Apple could face in the future
Interior of one of the Foxconn plants in Shenzhen, China
This clash between both companies a priori would not break any agreement between them, but it makes it clear that As Apple looks more to India, Foxconn still wants to put down roots in ChinaAnd the truth is that, despite having more than enough capacity to maintain both markets, opening new factories in India to supply Apple is far from cheap.
While it is true that Foxconn’s new plans in India will not involve anything with Apple, some of the technologies developed and/or assembled there could be of interest to Apple in the future. And obviously this would mean that the American company would have to continue depending on factories installed in China and, then yes, it would affect the silent flight it has been making for years.
To all this we must add the geopolitical tensions that affect China with the United States. Apple, being a US stronghold, could at some point end up being the victim of retaliation from a Chinese government that we have already seen does not hesitate to prohibit the use of devices such as the iPhone.