Apple’s plan to shift more of its iPhone production to India is encountering a significant obstacle. According to a Bloomberg report, Foxconn, Apple’s main production partner, has asked over 300 Chinese engineers and technicians to leave its Indian factories. 
This action started two months ago and could complicate Apple’s ambitions for expanding production in India, particularly as the iPhone 17 launch nears.
Neither Apple nor Foxconn has provided an explanation for this decision. However, it coincides with reports that China is increasingly pressuring companies to limit the export of skilled labor and technology to countries like India, possibly as part of a strategy to keep advanced manufacturing within its borders.
Chinese engineers have been instrumental in training Foxconn’s Indian workforce and facilitating the transfer of production knowledge. Their sudden exit could hinder progress, raise costs, and impact the efficiency of assembly lines. Although quality may not be directly affected, productivity could suffer. A source noted that this could slow down operations, even if the final product remains unaffected.
India began large-scale iPhone assembly just four years ago and now produces about 20% of Apple’s global iPhone output. Apple aims to manufacture most of its iPhones for the US market in India by 2026, but these recent complications could delay that goal.
The pullback of skilled Chinese workers by Foxconn also highlights the intricate dynamics between India and China. Despite recent diplomatic meetings aimed at improving relations, tensions persist. The countries don’t share direct flights, and India continues to impose visa restrictions on Chinese citizens and ban apps like TikTok. Additionally, China has restricted some exports to India, including fertilizers.
Despite these obstacles, Apple and Foxconn remain committed to their Indian production plans. Foxconn is constructing a new iPhone factory in southern India, signaling confidence in the country’s long-term potential. However, the shortage of experienced engineers could delay the scaling of operations.
India’s government has been notified of Foxconn’s decision, although the specific reasons for the withdrawal have not been disclosed. So far, no significant disruptions have been reported. This development underscores the ongoing challenges Apple faces in reducing its reliance on China while ensuring seamless global production.
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I wonder how much this will affect the iPhone 17 launch… Could be big