Apple might soon start mass production of iPhones this year in India
17 April, 2019, 12:54 | Author: Sammy Rose
The chairman of Taiwan's Foxconn, assembler of Apple Inc's iPhones, told Reuters on Monday he plans to step down in the coming months, saying he wants to pave the way for younger talent to move up the ranks of the company. Until now, the majority of the production was conducted in China.
Terry Gou, founder and chairman of Foxconn, attends a forum on industrial internet at the fifth World Internet Conference (WIC) in Wuzhen, Zhejiang province, China, November 8, 2018.
Based on a report by Bloomberg, Foxconn is ready for a trial production of the latest iPhones. The labor will be cheaper for Foxconn and Apple gets access to a growing market.
"I will still be involved and be in charge of the company's major directions in the future but I will take a more advisory role on daily operations", Gou said on the sidelines of a forum in Taipei".
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It is unclear how Apple's foray into manufacturing in India will affect its relationship with China, which has been its production hub for years with Foxconn and other partner companies.
Foxconn already has two assembly sites in the southern Indian states of Andhra Pradesh and Tamil Nadu, where it makes devices for Xiaomi and Nokia.
The Taiwanese contract manufacturer, the biggest maker of iPhones, will initially invest about US$300 million to set up for Apple with investments to ramp up as capacity expands, they said.
When asked about his retirement plan at a shareholder meeting past year, Gou said he would not step down until the company's share price hit Tw$200 (USD 6.49). He has a dozen software people in India and he plans to increase that to 600, he said. Due to Chinese competitors like Xiaomi offering advanced features at lower prices, Apple is losing its market share in the country.
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