Blocked Supplies From China Lead to No iPhones Production in India
- Foxconn has not been able to manufacture (assemble) iPhones as the supplies from China have got hit
- A report claims that a lobby group representing US companies in India has written to country’s commerce minister
Employees at several Foxconn facilities are enjoying extended holidays as the facility has run out of supplies required to manufacture iPhones. A report by Retail Asia points out that Indian authorities are blocking supplies from China. The move has left Apple iPhone components being stuck at several Indian ports.
The recent tensions between Indian and Chinese border forces had resulted in death of 20 Indian soldiers. India’s Prime Minister Narendra Modi had also visited the LAC a few days back.
Foxconn has two facilities in South India
Foxconn, the contract manufacturer for Apple’s iPhones, also manufacturers smartphones for brands like Xiaomi. The report indicated that several supplies containing components from China were struck at the Chennai port.
Chennai port is essential for Foxconn as its facilities that manufacture iPhones are located in South India. The company, apart from assembling latest iPhone SE, also assembled models like iPhone XR in these facilities.
China’s commerce minister, as the report pointed out, has urged India to stop discriminatory behaviour against Chinese Companies. It is to be noted here that following the border dispute between the two, a strong anti-China sentiment has been growing in India.
More than 55 apps, said to be originating in China, were banned by the govt of India recently. India has also mandated certifications of certain communication and power equipment through labs accredited by Indian authorities.
Foxconn, as per earlier reports, was gearing up to apply recent PLI scheme launched by the government of India. Smartphones brands originating in China have been ruling the Indian smartphone markets for past several years now.