Apple’s India iPhone Ambitions Hit By Foxconn Staff Recall: Report

Hon Hai Precision Manufacturing, also known as Foxconn, the primary assembler of iPhones for Apple Inc. (AAPL), has reportedly recalled hundreds of its mainland Chinese engineers and technicians from facilities in southern India, disrupting the company’s strategy to expand iPhone manufacturing in the region.

According to a Bloomberg report, over 300 Chinese technical staff members were ordered to depart from Foxconn’s Indian plants in Tamil Nadu and Karnataka, leaving mainly Taiwanese support personnel on site, beginning roughly two months ago.

Despite the news, Apple stock traded 2.3% higher on Wednesday morning.

The precise motive behind the pullout has not been made public. Still, earlier this year, Chinese authorities encouraged government agencies to restrict the flow of technology and equipment to India and Southeast Asia, potentially aiming to hinder the shift of manufacturing operations out of China.

According to individuals familiar with Foxconn and Apple operations cited in the report, although the standard of assembly in India remains steady, the departure of Chinese engineers may reduce production line efficiency, disrupt workforce training, and contribute to higher manufacturing expenses.

Foxconn, has stepped up its financial commitment to operations in India recently. The company’s Indian arm, Yuzhan Technology Ltd, based in Tamil Nadu and responsible for iPhone assembly and electronics production, confirmed that another Foxconn-linked entity in Singapore has acquired $1.49 billion worth of its shares.

Apple's supplier is also building a new manufacturing site in southern India. To manage the disruption, Foxconn is deploying Taiwanese staff to India and ramping up partial assembly in Chinese plants.

From March to May 2025, approximately 97% of iPhones produced by Foxconn in India were exported to the U.S.

This marks a sharp rise from the roughly 50% share recorded earlier in the year, highlighting Apple’s strategy to mitigate the impact of escalating U.S. tariffs on products manufactured in China.

On Stocktwits, retail sentiment toward Apple improved to ‘extremely bullish’ from ‘bullish’ territory the previous day amid ‘high’ levels of message volume.

Apple stock has lost over 15% in 2025 and over 3% in the last 12 months.

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