Foxconn Technology Group, the major iPhone assembler, has recently purchased $33 million worth of equipment from Apple Inc. for its expanding operations in India. This move indicates Foxconn's rapid expansion in the country as it seeks to strengthen its presence in the Indian market.
According to a filing from Hon Hai Precision Industry Co., Foxconn's flagship unit listed on the Taipei stock exchange, the Indian subsidiary of the Taiwanese company acquired equipment from Apple Operations Ltd. to meet its operational requirements.
This disclosure provides a rare glimpse into the business relationship between Foxconn and its largest customer, Apple, which often assists in financing the equipment costs used by the Taiwanese manufacturer to produce a majority of the world's iPhones.
The purchase of equipment from Apple comes at a time when the Indian government is actively encouraging increased electronics production in the country. In May, India's Minister of State for Technology, Rajeev Chandrasekhar, revealed that Apple expressed its interest in expanding its electronics manufacturing operations in India. This announcement followed Apple CEO Tim Cook's commitment to investing in the region during a meeting with Prime Minister Narendra Modi.
Apple's efforts in India have yielded significant results. In the last fiscal year, the tech giant tripled its iPhone production in the country and manufactured iPhones worth over $7 billion. This accounted for nearly 7% of its total handset production.
Concurrently, Foxconn has plans to invest around $700 million in constructing a new facility in Karnataka, primarily aimed at bolstering local production of iPhone components, as reported by Bloomberg News.
The acquisition of equipment from Apple by Foxconn underscores the deepening ties between these two industry giants. It also highlights the increasing importance of the Indian market for both companies as they strive to tap into the country's growing consumer base and expand their manufacturing capabilities.