Apple’s push to move more iPhone production to India ran into trouble this week when Foxconn, the company’s largest assembler, asked over 300 Chinese engineers and technicians to return home from its southern India facilities. That move, which began about two months ago, risks slowing the ramp‑up for the next iPhone model and could push back Apple’s goal of making most U.S.-bound devices in India by late 2026 bloomberg.comtimesofindia.indiatimes.com.
The recall affects key staff who trained local workers and tuned complex assembly lines. These engineers oversaw process control, quality checks and equipment maintenance. Without their expertise on site, line efficiency may drop and training new teams could take longer than planned bloomberg.comperplexity.ai.
This setback comes at a delicate moment for Apple and Foxconn, as they prepare for iPhone 17 production. Analysts warn that a slowdown in India could force Apple to lean on its Chinese factories for longer. That outcome would undercut years of work to cut exposure to China amid rising export controls on high‑end chips and assembly gear perplexity.aibusiness-standard.com.
India has become central to Apple’s global strategy. CEO Tim Cook pledged that a significant share of U.S. iPhones will carry an “Made in India” label. Apple set a target of 30 million units made locally by 2025 and aims for India to supply 25 percent of global production by 2027. In the fiscal year ending March 2025, India‑assembled iPhones already reached a value of $22 billion, about 20 percent of worldwide output ft.combloomberg.com.
The recall may reflect Beijing’s tighter export rules on critical technology and skilled labor after Washington banned shipments of advanced chipmaking equipment. China’s new dual‑use export controls cover hundreds of items and impose scrutiny on personnel moving abroad, a policy meant to protect its tech edge. Those rules could explain why Foxconn pulled its engineers back, leaving mainly Taiwanese staff at the Indian plants ft.comtimesofindia.indiatimes.com.
Foxconn and Apple have not offered detailed public comments on the recall. Foxconn’s only statement noted that staffing decisions respond to local needs and international rules. Apple said it remains committed to growing its Indian operations and will work through short‑term challenges to meet its long‑term goals business-standard.comangelone.in.
Personal Analysis
I see this recall as a test of how quickly Apple and Foxconn can adapt on the ground. India’s workforce has grown skilled, but building deep technical know‑how takes time. If Apple leans in with more training and local leadership, it can use this moment to strengthen its supply chain resilience. Otherwise, the company may find itself relying on Chinese capacity longer than planned, undercutting its diversification aims and leaving it vulnerable to future trade shifts.
