For this week’s business news, I’ll be talking about how Apple’s Major Supplier, Foxconn, has Begun iPhone Manufacturing in India. In this blog, I’ll be covering how has this affected our country, what was apple’s strategy in India, and much more.


The state government of Karnataka in southern India has announced that Foxconn, Apple’s largest supplier, will commence iPhone manufacturing in the region by April of next year. According to my stats, this has the potential to generate approximately 50,000 employment opportunities. Foxconn, a Taiwan-based company, is responsible for manufacturing the majority of Apple’s phones and has been producing older iPhone models at a facility in the neighbouring state of Tamil Nadu since 2017. The recent purchase of land near Bengaluru city in Karnataka, coupled with the government’s statement, reveals plans for a significant investment in a new factory worth $1.59 billion.

Job Creation and Production Targets:

The Foxconn project in Karnataka is anticipated to create around 50,000 jobs, contributing to the state’s economic growth. Reuters reports that the company has set a target of manufacturing 20 million iPhones annually at the Karnataka plant. This move by Apple’s prominent supplier to expand production in India reflects a strategic decision to diversify supply chains and reduce dependence on China, particularly amid escalating trade tensions between the United States and China.

Apple’s Market Strategy in India:

Traditionally, Apple has concentrated its phone manufacturing in China. However, the tech giant’s decision to produce its flagship model in India signifies a strategic shift to tap into the Indian market and mitigate risks associated with geopolitical uncertainties. Presently, iPhones are assembled by various Apple suppliers in India, including Foxconn, accounting for approximately 5% of total iPhone production. Apple has faced challenges in the Indian market due to the dominance of more affordable South Korean and Chinese smartphone brands.

Implications and Apple’s India Expansion:

Apple CEO Tim Cook’s visit to India in April, during which the country’s first two Apple stores were launched, underscores the company’s commitment to expanding its presence in the Indian market. By partnering with Foxconn to manufacture iPhones in India, Apple aims to leverage the benefits of local production, such as reduced costs and the potential to comply with government initiatives promoting domestic manufacturing. This strategic move also aligns with India’s efforts to attract foreign investment and bolster its manufacturing sector.


Foxconn’s decision to establish iPhone manufacturing facilities in Karnataka, India, represents a significant development for both the state and Apple. The project’s substantial investment and employment opportunities indicate the growing importance of India as a production hub and a key market for Apple’s future growth. By diversifying its supply chains and increasing local production, Apple aims to navigate the evolving geopolitical landscape while tapping into the immense potential of the Indian market.

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