China Bug for iPhones

Foxconn's move to recall Chinese workers is yet another reminder of the skill famine in India

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Apple's largest iPhone assembler Foxconn's move to recall hundreds of Chinese engineers and technicians from its iPhone factories in India is unfortunate. The Foxconn move is the latest example of how China is determined to curb technology transfers and exports of equipment to India and other South-east Asian nations as it seeks to protect its manufacturing base and prevent other countries from growing theirs. Whether this is a breach of contractual agreements will be sorted out later, but in the meanwhile, the setback to Apple, which has been scaling up exports of phones from India, and was readying to ramp up production of the iPhone 17, is undeniable. Both the quality of production and the efficiency of the assembly lines would be impacted. Nearly all the phones exported by Foxconn from India went to the US between March and May, customs data showed, far above the 2024 average of 50%.