Foxconn eyes India for iPad production amid Apple's expansion plans

Apple has been steadily working to reduce its independence on China as a main source of its manufacturing efforts, with India one of the growing production centers for iPhone. With iPhone assembly well established in India, the stage is set for expansion into other products.

According to the Economic Times, Foxconn is considering the possibility of starting to produce iPads in India. Current speculation is that it plans to use its facility in Sreiperumbudur to assemble the tablets.

One source said Foxconn is "serious looking" into the matter. A second source said there have been some discussion with the government, with Foxconn intending for overall production in India to double within the next few years.

This production increase is anticipated to include iPhone, iPad, and some other products, but not necessarily Mac production.

A timely expansion

Foxconn's investigation into adding iPad production to its India workload is apt, as earlier in July, Apple looked into the matter as well. Apple apparently wanted to expand iPad production, as well as AirPod charging cases.

On July 23, the Indian government decided to make it cheaper for smartphone and electronics producers to operate in India, by cutting back import duty on iPhones and selected iPhone components. The latter makes the cost of production of an iPhone cheaper for Apple and its supply chain partners.

Previously the import tax rate was 20%, but it is being changed to 15%. To Apple, this could mean a reduction in costs of between $35 million and $50 million per year.