Proportion of India-made iPhones to double by 2024 while Foxconn’s output in China to shrink, TF Securities analyst says

India's role as a production base for iPhones is set to increase in the coming years, while Foxconn's iPhone production in China could significantly decrease, according to a research report. Currently, iPhones manufactured in India account for 12 to 14 per cent of global shipments. However, if production expansion proceeds smoothly, this figure is expected to rise to 20 to 25 per cent by next year, says Kuo Ming-chi, a TF International Securities analyst known for his accurate analysis of Apple's business.

Foxconn Technology Group, also known as Hon Hai Precision Industry, is Apple's major supplier and currently operates 75 to 80 per cent of the iPhone production capacity in India. Foxconn runs the world's largest iPhone factory in Zhengzhou city, located in China's central Henan Province. However, Kuo predicts that production at this factory will decrease by 35 to 45 per cent by 2024. The factory's production was severely disrupted last year due to China's strict Covid-19 lockdowns.

Foxconn's plant in Taiyuan, in northern Shanxi Province, could see a dramatic drop in output of 75 to 85 per cent next year, according to Kuo's report. Meanwhile, Chinese authorities are conducting investigations into Foxconn's facilities in southern Guangdong province and Jiangsu in the east, as well as carrying out on-site inspections of the company's land use in central Hunan and Hubei provinces. Foxconn's reduction of production scale in China is also due to the rise of competitor Luxshare, a Dongguan-based electronics manufacturer, which has seen a rapid increase in Apple orders and has made improvements to production line automation.