Apple is activating contingency plans, including tapping engineers from other countries, to offset the impact of a labour crisis involving Chinese workers at its partner Foxconn’s iPhone factory in India, top government sources told Moneycontrol.
The Indian government, while monitoring the situation, is not overly concerned about immediate disruptions to iPhone production. “We will track production targets, but it’s not our primary concern,” a senior official said on condition of anonymity.
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Officials said Apple is expected to manage the situation independently, with alternative staffing strategies already in motion. “We facilitated visas earlier at the company’s request. If the Chinese workers want to return, it’s between them and the company. Apple will have to decide how to keep operations running,” the official added.
At the same time, the situation is being viewed as an inflection point to build stronger domestic capabilities. “Eventually, we need local capacity to manage such operations. I’d see this more as an opportunity,” the official said.
The disruption, however, could slow Apple’s expansion in one of its fastest-growing manufacturing hubs. Foxconn is responsible for assembling the iPhone 17 Pro series in India, and any delays could impact production and export timelines.
Also Read: Apple's India plans hit the Great Wall after Foxconn sends over 300 Chinese engineers home
Compounding the challenge is China’s move to delay or block exports of key capital equipment—machinery critical to iPhone manufacturing. Industry executives have flagged mounting disruptions due to the slowdown in tool shipments.
Despite the hurdles, Foxconn is continuing its aggressive India push. A major new facility in Bengaluru is set to begin operations soon, and the company is onboarding 1,000 local employees by mid-July, taking its India headcount to nearly 40,000.
In a parallel move, Foxconn has also started production of Apple’s AirPods in Hyderabad for global markets.
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