Foxconn plans to assemble Apple iPads in India, expanding beyond iPhones: Report

Foxconn is planning to assemble Apple's iPads in India at its Sriperumbudur facility in Tamil Nadu, according to a report by The Economic Times. Until now, Foxconn and other contract manufacturers in India have only assembled iPhones. The report claims Foxconn is keen on starting iPad assembly soon, with initial discussions with the government already underway.

Not just in India, Apple also started iPad production in Vietnam. The American company is diversifying its production away from China, which is part of a broader strategy that included shifting some iPad production to Vietnam last year. The expansion in India aligns with this move.

The report claims that initially, iPads in India might be assembled in a Semi-Knocked Down (SKD) manner before moving to Completely Knocked Down (CKD) levels, similar to the current process with iPhones. This will help in scaling up production efficiently.  If the plans materialise, Foxconn is expected to start assembling iPads in India by the second half of next year.

Producing iPads in India is seen as feasible because their assembly is similar to that of iPhones, unlike MacBooks, which require more complex facilities. This step would also benefit from India's production-linked incentives (PLI 2.0 for IT Hardware).

Apart from diversification, Apple is also focusing on the domestic market, with annual iPad shipments expected to reach 49 million this year, a 4.5% increase from last year. India’s reduction of the Basic Customs Duty from 20 per cent to 15 per cent on components is expected to expedite these manufacturing plans.

Foxconn is also set to begin manufacturing AI servers and potentially Google’s Pixel smartphones at the Sriperumbudur plant. Additionally, a mega factory outside Bengaluru will primarily focus on iPhones. This move will significantly enhance India’s position in the global supply chain for high-end electronics, benefiting from local incentives and a growing domestic market.