Quoting Maharashtra minister Subhash Desai, a Reuters report said Foxconn is scouting for a place in the state to set up its Apple phone manufacturing unit to churn out millions of iPhones, iPads with the label “Assembled in India” soon.
Foxconn has been assembling Apple devices in China for well over a decade now and the move to shift means expansion of Apple manufacturing units beyond China to cater the global demand and skilled workers’ requirement in the future.
While Desai was confident that Foxconn is scouting for an area, preferably in the vicinity of Pune-Mumabi industrial belt, the location should not come as a surprise since Chennai-Bangalore belt is under labour problems and court tussles over tax disputes, especially by Nokia and some Korean units making headlines of late.
Beyond the location, Foxconn choosing to shift to India highlights the rising labour problems and cost of production in China necessitating the cross-border operations and the huge orders Apple is expecting in the next few years from Asia, especially India.
Moreover, Foxconn had set up a base for Nokia near Chennai that ran into trouble over tax dispute until itw as taken over by Microsoft.