The Economic Times reports that the Indian government has given Apple clearance to identify 40 acres inside Foxconn’s Chennai plant to double iPhone production for the domestic market. The decision is likely to yield the Cupertino tech giant’s record iPhone sales this year.
Furthermore, as the expansion also entails an increase in the workforce at the assembling facility, Foxconn has accelerated its drive to reopen hostels for 10,000 out of 15,000 workers accommodation with improved living and working conditions.
Last year, the Foxconn factory in Chennai was shut down after a food poisoning incident that left 150 employees hospitalized and led to widespread protests regarding workers’ unsanitary living conditions at the plant.
The Taiwanese manufacturer was told by the local authorities to improve the quality of workers’ living conditions, and provide them with resources and recreational facilities like food and water, power backups, indoor games, library, TV, and other needs at the facility. Foxconn has reportedly made the necessary changes and is set to welcome the total workforce at hostels back in May.
Apple to begin production of iPhone 13 Pro models at Foxconn factory in Chennai for the domestic market
As per the report, India is becoming a lucrative market for smartphones and Apple is eyeing to capture its largest share to increase its headcount at Foxconn’s assembling plants in Chennai.
Foxconn’s DTA approval to sell in the domestic market comes at a time when smartphone shipments have been growing steadily despite component supply constraints last year.
According to IDC research data, Indian smartphone shipments stood at 161 million in 2021, up 7% from the previous year. Chinese company Xiaomi shipped 40.4 million phones, holding a little over a fourth of the market. South Korean competitor Samsung came in second at 27.9 million phones and 17.4% market share.
Previously, it was reported that Apple saw higher iPhone shipments (premium segment) in India than Samsung and Xiaomi in Q4, 2021 with a 4% increase.
Apple was one of the fastest growing brands in 2021 with 108% YoY growth in shipments. It maintained its lead in the premium segment, with a 44% share. Aggressive offers during the festive season, strong demand for the iPhone 12 and iPhone 13 and increased ‘Make in India’ capabilities drove high growth. We expect strong momentum for Apple in 2022 as well with increased manufacturing and retail footprint.
Expansion of Apple’s business in India might be good news for the company, especially in reference to China’s uncertain situation after the resurgence of the COVID-19 and consequential lockdowns are expected to create supply constraints for Apple.