Apple Inc.’s (NASDAQ:AAPL) plans to reduce reliance on China’s iPhone manufacturing capacity have received a significant boost. On May 20, the company’s supplier Foxconn announced plans to invest $1.5 billion in an Indian Unit.
The investment will help support the iPhone maker’s plans to shift more manufacturing out of China, which is the subject of a heightened tariff war with the US.
A wide view of an Apple store, showing the range of products the company offers.
Apple remains under pressure and scrutiny from US President Donald Trump, who insists the only way out is to move the manufacturing capacity to the US. The US-China trade war has aided Apple’s underperformance by the 14% year-to-date slide. The underperformance comes from investors remaining wary of Apple’s core business, which is under pressure as it struggles to import iPhones from China into the US.
Amid the stalemate, Apple continued ramping production in India, exporting 600 tons of phones worth $2 billion from India to the US. Over the years, Apple has sold hundreds of millions of iPhones worldwide but has maintained little presence in India. That was due to the Indian government mandating that international businesses procure 30% of their supply from Indian companies.
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