Foxconn to dodge China lockdown, move iPhone production to India

Posted:
in iPhone
Analyst Ming-Chi Kuo claims that Foxconn is to step up its iPhone production in India, specifically to overcome delays caused by China's COVID lockdowns.

A Foxconn facility
A Foxconn facility


The latest coronavirus outbreak had already been predicted to cause Foxconn's iPhone output to drop by 30%. Then Chinese authorities imposed a week-long lockdown.

Now analyst Kuo says that his latest survey of supply chain sources shows Foxconn is planning to counter the impact by moving production away from China.

My latest survey indicates that Foxconn will accelerate the expansion of iPhone production capacity in India after Zhengzhou iPhone plant's COVID-19 lockdown. https://t.co/xQm39OBGpH

— (Ming-Chi Kuo) (@mingchikuo)
"As a result," continues Kuo, "iPhones made by Foxconn in India will grow by at least 150% YoY in 2023."

Kuo claims that "the medium/long-term goal is to ship 40-45% of iPhones from India (vs. the current 2-4%)," which means a rapid increase in Foxconn production in India over "the next few years."

At the same time as facing lockdowns, Foxconn has also seen workers fleeing its Zhengzhou factory over poor conditions. The company has delayed its seasonal reduction in the workforce, and also quadrupled bonuses to try keeping staff.

Read on AppleInsider

Comments

  • Reply 1 of 6
    Why is AAPL crashing with this good news? 
    jas99
  • Reply 2 of 6
    MadbumMadbum Posts: 536member
    Why is AAPL crashing with this good news? 
    Also Foxconn saying the zhengzhou lockdown has not affected production as they were in close loop already

    those walk outs were combinations of coerced workers and fake and staged actors by Anti USA and Anti Taiwan groups on Weibo , the China super app

     
    edited November 2022 jas99watto_cobra
  • Reply 3 of 6
    danoxdanox Posts: 2,872member
    Why is AAPL crashing with this good news? 
    Because Apple is Doomed is it 1001 or 5001 times? So many :smile: 

    watto_cobra
  • Reply 4 of 6
    MadbumMadbum Posts: 536member
    danox said:
    Why is AAPL crashing with this good news? 
    Because Apple is Doomed is it 1001 or 5001 times? So many :smile: 

    lol I think it’s 5001 times

    by the way, I just saw there are some 14 pro max 256gb models for pickup today 
    watto_cobra
  • Reply 5 of 6
    Why is AAPL crashing with this good news? 
    Because it will take a while to move some of the production of the Pros out of China.

    Really Apple has stupidly kept too much production in China - they should've moved away from China long ago - I've been writing Apple telling them that for years.

    I'd personally prefer moving production to a facility in a non-BRICS country even if labor and transportation costs are higher - there's no telling what authoritarian or quasi-authoritarian governments will attempt next - their policies and restrictions just aren't entirely rational.

    Then again, I'm an outsider again - I've sold my Apple after all these shenanigans and will wait until some Pro production is moved out of China.

    This is the last thing Apple needs for the holiday season - especially with Pro units already backlogged.

    Consumers only have so much patience - who knows how many unit sales will be lost to Apple because buyers need to have something to wrap at Christmas?
    edited November 2022 watto_cobra
  • Reply 6 of 6
    Why is AAPL crashing with this good news? 
    Because it will take a while to move some of the production of the Pros out of China.

    Really Apple has stupidly kept too much production in China - they should've moved away from China long ago - I've been writing Apple telling them that for years.

    I'd personally prefer moving production to a facility in a non-BRICS country even if labor and transportation costs are higher - there's no telling what authoritarian or quasi-authoritarian governments will attempt next - their policies and restrictions just aren't entirely rational.

    Then again, I'm an outsider again - I've sold my Apple after all these shenanigans and will wait until some Pro production is moved out of China.

    This is the last thing Apple needs for the holiday season - especially with Pro units already backlogged.

    Consumers only have so much patience - who knows how many unit sales will be lost to Apple because buyers need to have something to wrap at Christmas?
    You don't know investors are looking into the future. If they see in the future Apple can make more money, they will invest more in AAPL and raise its price. A single person opinion does not count in the stock market. 
    watto_cobra
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