Apple’s manufacturing partner Foxconn reportedly said there will be a manufacturing ecosystem in every region be it India, Southeast Asia or America. Foxconn said that China will no longer be the factory for the entire world.
“No matter if it’s India, Southeast Asia or the Americas, there will be a manufacturing ecosystem in each,” Hon Hai Precision Industry Co. Chairman Young Liu told Bloomberg while adding that China will still play a key role for Foxconn but “the country’s days as the world’s factory are done.”
The report said that Foxconn is increasing its manufacturing capacity outside China. “The proportion outside the country is now at 30%, up from 25% last June,” it added. He also hinted that this ratio may increase “in the future” as well.
The company also risks getting caught in the China-U.S. trade war. According to a report by Reuters, “Foxconn was working to build two supply chains, one for China and one for the United States, pointing to the company’s investments in Wisconsin, Mexico, Brazil and Southeast Asia as examples of it diversifying around the world.”
Foxconn reported a net profit of T$22.9 billion ($778.54 million) for the second quarter ended June. That was up 34% from a year earlier and better than a consensus estimate of T$17.95 billion.
Apple is already making its flagship iPhone 11 at Foxconn plant near Chennai. Of the three new models Apple launched in September 2019, the iPhone 11 is the best seller in India. As per IDC India, Apple dominated the premium segment ($500 and above or Rs 35,000-plus) in India with a market share of 62.7%, followed by Samsung and OnePlus in the January-March quarter.
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