Apple is facing a major demand-supply gap for the iPhone 14 Pro and iPhone 14 Pro Max as Foxconn’s plant in Zhengzhou, China, struggles to ramp up production due to strict COVID restrictions and labor shortage. Is. Apple has already confirmed the delay in delivery of iPhone 14 Pro and iPhone 14 Pro Max due to this issue. Now, with China curbing Covid, Foxconn is planning to quadruple its workforce at the Tamil Nadu plant to increase production. Disruptions at the Zhengzhou plant prompted Apple to lower its shipment forecast for premium iPhone 14 models this week, lowering its sales outlook ahead of the year-end holiday season.
According to a Reuters report, Foxconn plans to increase the workforce at its Tamil Nadu plant to 70,000 by adding 53,000 more employees over the next two years. Although the Tamil Nadu plant is much smaller than Foxconn’s Zhengzhou plant, it is key to Apple’s efforts to shift production out of China.
Foxconn has already started production of the iPhone 14 in India. Foxconn has shared with Tamil Nadu officials its plans about accelerating its hiring efforts at the Indian plant due to disruptions in China, the report said.
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According to the report, the Tamil Nadu government was in discussions with Foxconn to address issues like housing facilities for workers as it wanted to expand.
Currently, iPhones are assembled in India by at least three of Apple’s global suppliers: Foxconn and Pegatron in Tamil Nadu; and Wistron in the adjacent Karnataka state. Analysts at JPMorgan projected in September that Apple could make one in four iPhones in India by 2025, and 25% of all Apple products, including Macs, iPads, Apple Watches and AirPods, are currently outside China, up from 5% by 2025. to be manufactured.
(with Reuters inputs)