Apple And Foxconn Seek Government Help Over Delays In Equipment Shipments From Chinese Ports

The Ministry of Electronics and Information Technology (MeitY) has informed the Ministry of External Affairs (MEA) about delays in equipment shipments from Chinese ports, Moneycontrol reported citing an IT Ministry official.

This comes after Apple and Foxconn sought government intervention regarding delays in the shipment of specialised manufacturing equipment from Chinese ports

"This is not just an issue localised to certain companies, but many other companies are also affected by it," the official was quoted as saying by Moneycontrol.

"These concerns were mentioned by the industry, and which now have been informally conveyed to the Ministry of External Affairs," the official added.

Prolonged delays in the shipment of such items could hinder Apple's manufacturing expansion plans, Moneycontrol reported citing sources.

Factories require new machinery annually for trial runs of upcoming iPhone models due to which such delays could escalate into a major issue, they added.

The delays may reportedly be part of a larger retaliatory strategy linked to India’s visa restrictions for Chinese officials or its “selective approach to approving Chinese investments,”.

According to a report by Rest of World, an international tech publication, Foxconn has paused new work rotations for Chinese employees at its Apple iPhone factories in India, opting to deploy Taiwanese workers instead.

The report linked this decision to the Chinese government’s suspension of worker deployments and equipment exports.

Apple and Foxconn India had sought the government's intervention over delays in shipment of specialised manufacturing equipment from Chinese ports.

Further escalations by China could pose substantial challenges to India's handset and electronics industry, particularly as the country aims to bolster its component manufacturing capabilities.

This development comes as Apple is working on expanding local manufacturing in India and diversify its India-made portfolio with products like AirPods, iPads, and MacBooks.

In 2024, Apple initiated the production of iPhone 16 Pro and iPhone 16 Pro Max in India through Foxconn and Pegatron.

The company is also ramping up the production of AirPod wireless charging case components at Jabil’s facility in Pune.

Foxconn plans to commence AirPods production in the latter half of 2025 at its newly established facility in Telangana.

In 2024, Apple moved some of its iPad production to Vietnam. However, the Indian government has reportedly urged the company to reconsider assembling iPads in India to bolster local manufacturing efforts.

While iPhone production in India remains stable, prolonged delays could reportedly jeopardise Apple’s expansion plans, including the immediate goal of initiating AirPods production.

Counterpoint's Research Market Outlook projects that by 2026, India will become Apple’s third-largest market, following the US and China, with local sales volumes growing for the fifth consecutive year to 15 million units.

Currently, India ranks as Apple’s fifth-largest market, trailing Japan and the UK in third and fourth positions, respectively.

“Apple is estimated to ship over 11 million smartphones in 2024 with 10 percent YoY growth. A similar growth trajectory is expected in 2025, with YoY growth between 10 and 15 percent, further cementing its leadership in the high-value segment,” Pathak said.

Apple is experiencing a gradual decline in market share in China, with local brands making inroads into the premium segment, driven by Huawei’s resurgence.

Data from technology market analysis firm Canalys reveals that Apple’s market share in China dropped from 24 percent in Q4 2023 to 15 percent in Q1 2024, stabilising at 14 percent by Q3 2024, with 10 million units shipped in the quarter.

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