Taiwanese media digitimes reported that Foxconn's two factories in India presented two extreme scenarios, with the factory manufacturing iPhones continuing to expand, while the factory subcontracting for a Chinese mobile phone company was constantly shutting down production lines and executives were resigning, indicating that this Chinese mobile phone company was quietly withdrawing from the Indian market.

Taiwanese media pointed out that Foxconn's factory subcontracting for this Chinese mobile phone company has seen orders shrink by 70%. To maintain the operation of the factory, Foxconn's factory is vigorously expanding into industries such as telecommunications equipment, electric vehicle parts, TVs, and displays to make up for the losses caused by the reduction in Chinese mobile phone orders.

However, due to the lack of relevant brands in India, Foxconn's factory transformation was not successful, and the orders obtained were quite limited. Under the circumstances, Foxconn had no choice but to lay off employees to cope with the situation. Rumors even spread that Foxconn might close the factory, and executives were resigning in droves. In the past three months, three independent directors have resigned from this factory.

In contrast, Foxconn's another factory in India that manufactures iPhones for Apple is exceptionally prosperous, with the factory busy. To cope with Apple's increasing orders, Foxconn is planning to further increase the number of employees at this factory to meet Apple's order demands.

With the support of Foxconn and Apple, India's iPhone exports have increased significantly. It is estimated that the proportion of iPhones manufactured in India in 2023 has exceeded 12%, making India the second-largest iPhone manufacturing country after China. It is worth noting that Indian media claims that Apple has become the world's second-largest mobile phone exporter, while Vietnam also claims that it is the second-largest mobile phone exporter.

Chinese mobile phones have made considerable contributions to Indian manufacturing. As early as 2014, Foxconn announced that it would invest billions of dollars to build factories in India to manufacture mobile phones. However, Foxconn did not take any action for several years after that until 2017, when a Chinese mobile phone company collaborated with Foxconn to set up a factory in India.

With the support of this Chinese mobile phone company, Indian mobile phone manufacturing finally took off, and the mobile phone company also received its reward. It has been India's largest mobile phone brand for several consecutive years since 2017. Under its influence, many Chinese mobile phone companies have followed suit and invested in India. Four of the top five mobile phone brands in India are Chinese mobile phone companies, and Chinese mobile phone companies have also captured nearly 80% of the market share in India.

India gradually established a mobile phone industry chain. In 2019, Apple required Foxconn, Wistron, and others to set up factories in India, and India's mobile phone manufacturing capacity expanded rapidly. However, at this time, the complacent India began to target Chinese mobile phones, issuing huge fines to Chinese mobile phones one after another and demanding that they hand over their equity. Wistron was even forcibly acquired by India's Tata Group. It is reported that Pegatron's Indian factory has also been targeted by Tata.

India's actions have chilled many mobile phone companies, and overseas media have reminded of India's reputation as a foreign investment graveyard. Many foreign companies have withdrawn from India. Since 2022, more than 1,700 of the more than 5,000 foreign-registered companies in India have been deregistered. The current data proves that this Chinese mobile phone company is also significantly reducing its Indian business, leading to Foxconn's Indian factories continuously shutting down production lines and even rumors of imminent closure.

India's greed may destroy Indian manufacturing. Today's Indian manufacturing has not yet formed a complete mobile phone industry chain. iPhones manufactured in India still need to import mobile phone components from China in large quantities. iPhones manufactured in India have also been accused of issues such as low yield rates and excessive E. coli levels, leading to Chinese and European consumers refusing to purchase them. Foxconn is also concerned that its factories in India will be acquired by conglomerates such as Tata. The prosperity of Indian manufacturing may just be fleeting.