Apple has Alternatives to Handle Return of Chinese Techies from Foxconn: Sources

The government is monitoring production targets at Foxconn and believes that Apple has alternatives to handle issues related to the return of Chinese professionals from Taiwanese electronics manufacturer's plant in India, sources said on Friday.

Hundreds of Chinese technology professionals who were facilitating and managing production at Foxconn plants in India have returned to China triggering speculation that it may hamper production of the upcoming iPhone 17 series.

"Government is monitoring the situation. Apple has alternatives and they should be able to look at ways to handle this. Issue is primarily between Apple and Foxconn," a government source said.

Most of the equipment used for manufacturing of mobile phones are sourced from China and Chinese technology professionals have expertise in handling them.

According to sources, the engineers who have returned were handling assembly lines, factory design and also involved in training talents to handle tools and machines for iPhone production.

Speaking on the condition of anonymity, the source said the government is monitoring the production targets at the Foxconn factory.

Foxconn is one of the leading companies that has been selected by the government under the production linked incentive scheme.

"Government facilitated visas for Chinese workers. Companies will have to make arrangements to ensure there is no disruption in the production," the source said.

Industry sources privy to the production of iPhones in India have said that the return of Chinese technology professionals will have no impact on the production of iPhone 17 and the company also continues to be on track to scale up production in India.

Apple vendors in India Foxconn and Tata Electronics have also seen easing of capital goods sourcing from China that are critical for the production of iPhones.

According to multiple sources, Apple plans to ramp up production of the iPhone to 60 million this year from about 35-40 million that it produced in 2024-25.

Apple CEO Tim Cook during the company's result had announced that all iPhone sold in the US in the June quarter will be shipped from India.

India-made iPhones are assembled in Taiwanese contract manufacturer Foxconn's factory in Tamil Nadu. Tata Electronics, which runs Pegatron Corp's operations in India, is the other key manufacturer. Tata and Foxconn are building new plants and adding production capacity to raise iPhone production.

Apple assembled 60% more iPhones, worth an estimated USD 22 billion, in India in the year ended March 31, 2025.

According to an analysis by S&P Global, iPhone sales in the US were 75.9 million units in 2024, with exports in March from India at 3.1 million units, suggesting a need to double shipments either through new capacity or redirecting shipments bound for the domestic market.

"Apple's Indian exports already headed predominantly to the United States, which represented 81.9% of phones exported by the firm in the three months to February 28, 2025. That increased to 97.6%t in March 2025 as a result of a 219% jump in exports, likely reflecting the firm looking to preempt higher tariffs," S&P Global Market Intelligence report said.

iPhones worth ₹1.5 lakh crore were exported from India in fiscal year 2025.

The Apple ecosystem in India is one the biggest job creators in the country. It is estimated to have employed around 2 lakh people across various vendors in the country.

India's smartphone exports are growing at a healthy rate and has become a "consistent and significant" player in the sector, an official said, adding that the country has become a major mobile manufacturing hub today.