Chinese techies return not to impact iPhone 17 production, Apple's ramp-up plan intact: Sources
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
The return of Chinese technology professionals from an Apple vendor's facility will have no impact on the production of the upcoming iPhone 17, sources aware of the development said on Tuesday.iPhone maker Apple continues to be on track to scale up production in India, sources said.According to the sources, Apple vendors in India, Foxconn and Tata Electronics , have also seen easing of capital goods sourcing from China. These capital goods are critical for the production of iPhones."The return of Chinese professionals from Foxconn has had no impact on iPhone production. The production of iPhone 17 in India will be as per schedule," a source aware of the development on iPhone production told PTI.A query sent to Apple, Foxconn and Tata Electronics did not elicit any response on the matter.Multiple sources have shared that hundreds of Chinese professionals working at Foxconn India units have returned to China in the last two months.According to sources, these engineers were handling assembly lines, factory design and also involved in training talents to handle tools and machines for iPhone production.Another source said that there has been an easing of the supply of capital goods from China as well for iPhones."Apple partners have seen an easing of supply of capital goods. So there is no impact on iPhones' production in India," the source said.The person said that there is no change in Apple's plan to ramp up production in India. According to multiple sources, Apple plans to increase iPhone production to 60 million units this year from about 35-40 million units that it produced in 2024-25.Apple CEO Tim Cook, during the second-quarter earnings call had announced that all iPhones sold in the US in the June quarter will be shipped from India. India-made iPhones are assembled in Taiwanese contract manufacturer Foxconn's factory in Tamil Nadu.Tata Electronics, which runs Pegatron Corp's operations in India, is the other key manufacturer. Tata and Foxconn are building new plants and adding production capacity to increase iPhone production.Apple assembled 60 per cent more iPhones, worth an estimated USD 22 billion, in India in the year ended March 31, 2025.According to an analysis by S&P Global, iPhone sales in the US were 75.9 million units in 2024, with exports in March from India at 3.1 million units, suggesting a need to double shipments either through new capacity or redirecting shipments bound for the domestic market."Apple's Indian exports already headed predominantly to the United States, which represented 81.9 per cent of phones exported by the firm in the three months to February 28, 2025. That increased to 97.6 per cent in March 2025 as a result of a 219 per cent jump in exports, likely reflecting the firm looking to preempt higher tariffs," S&P Global Market Intelligence report said.Union Minister Ashwini Vaishnaw had in April announced that iPhones worth Rs 1.5 lakh crore were exported from India in fiscal year 2025.The Apple ecosystem in India is one of the biggest job creators in the country. It is estimated to have employed around 2 lakh people across various vendors in the country.India's smartphone exports are growing at a healthy rate and have become a "consistent and significant" player in the sector, an official said, adding that the country has become a major mobile manufacturing hub today.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
8 minutes ago
- Economic Times
Who is Sabih Khan, the Indian-origin executive named Apple's New chief operating officer?
Synopsis Apple has announced Sabih Khan as the new Chief Operating Officer, succeeding Jeff Williams later this month. Khan, previously Senior Vice President of Operations, has been instrumental in shaping Apple's global supply chain and sustainability efforts. Williams will continue to oversee design and health initiatives before retiring, ensuring a smooth transition under Khan's leadership. Sabih Khanhas been a central figure in shaping Apple's global supply chain for decades. Apple has announced that Sabih Khan, the company's longtime senior vice president of Operations, will succeed Jeff Williams as Chief Operating Officer later this month. Williams, who has worked at Apple for nearly three decades, will continue reporting to CEO Tim Cook and overseeing Apple's design team and health initiatives until his retirement later this year. The Indian-origin executive has been a central figure in shaping Apple's global supply chain for decades. Having joined Apple's procurement group in 1995, Khan rose through the ranks to become senior vice president of Operations in 2019. Over the past six years, he has led Apple's global supply chain, overseeing planning, procurement, manufacturing, logistics, and product fulfillment. He has also overseen Apple's supplier responsibility programs that focus on worker protection, education, and environmental sustainability. 'Sabih is a brilliant strategist who has been one of the central architects of Apple's supply chain,' said Tim Cook. 'He has helped pioneer new technologies in advanced manufacturing, expanded Apple's footprint in the U.S., and pushed forward our environmental goals — cutting Apple's carbon footprint by over 60 percent. Above all, Sabih leads with heart and integrity, and I know he will make an exceptional chief operating officer.' Khan's leadership has also played a vital role in advancing Apple's green manufacturing initiatives and in fostering partnerships with suppliers to reduce environmental impact. His contributions have been key to ensuring Apple's agility in the face of global challenges, such as supply chain disruptions and rising sustainability demands. Before joining Apple, Khan worked at GE Plastics as an applications development engineer and technical leader. He holds dual bachelor's degrees in economics and mechanical engineering from Tufts University and a master's in mechanical engineering from Rensselaer Polytechnic Institute. As Apple prepares for this leadership change, Cook emphasized that Khan is the ideal person to guide Apple's operations into the future: 'I have tremendous confidence in Apple's future under his leadership in this role.'
&w=3840&q=100)
Business Standard
9 minutes ago
- Business Standard
CDS warns against Pak-China-Bangladesh collusivity for security interests
Possible convergence of interest among China, Pakistan, and Bangladesh may result in serious implications for India's stability and security dynamics, Chief of Defence Staff Gen Anil Chauhan said on Tuesday. In an address at a think-tank, Gen Chauhan, delving into the May 7-10 military conflict between India and Pakistan, said it was perhaps for the first time that two nuclear weapon states were directly engaged in hostilities. The Chief of Defence Staff (CDS), referring to Beijing-Islamabad collusivity, said Pakistan has acquired almost 70 to 80 per cent of its weapons and equipment from China in the last five years. He said Chinese military firms have commercial liabilities in Pakistan. The top military officer said economic distress in the countries in the Indian Ocean region has given "outside powers" to leverage their influence which could create vulnerabilities for India. "There is a possible convergence of interest we can talk about between China, Pakistan, and Bangladesh that may have implications for India's stability and security dynamics," Gen Chauhan said at the event hosted by the Observer Research Foundation. His comments came as India's ties with Bangladesh witnessed a sharp downturn after deposed prime minister Sheikh Hasina fled Dhaka and took shelter in India in August last year. While talking about various aspects of Operation Sindoor, the CDS said further "expansion of space" in conventional operations is possible by taking it to newer domains of warfare like cyber and electromagnetic spheres. Gen Chauhan said there were no unusual activities by the Chinese side along the northern border when India and Pakistan were engaged in the four-day conflict. "Maybe this is a short conflict. That's an assumption I can make. But it is a fact that there was no activity along the northern border (by the Chinese militaries)," he said. The top military officer also touched upon the strategic friendship between Pakistan and China. "In the past five years, Pakistan has acquired almost 70 to 80 per cent of its weapons and equipment from China. That's a fact. A reasonable assumption would be that Chinese OEMs (original equipment makers) will have commercial liabilities which they have to fulfil and will have people in Pakistan," he said. The CDS also highlighted how India called out Pakistan's nuclear bluff. "India has also said that it will not be deterred by nuclear blackmail. I think Operation Sindoor is the only example of a conflict between two nuclear weapon states," he said. Gen Chauhan said there have been hundreds of conflicts around the world ever since the nuclear weapons were invented, but it was for the first time that two nuclear weapon states were directly engaged in a conflict. "So Operation Sindoor, in that manner, is slightly unique in itself, and it may hold lessons not only for the subcontinent, but for the entire world," he said. In this context, he observed that there was a lot of space for conventional operations and cited three fundamental reasons to back his argument. "First is India's nuclear doctrine, that there's no first use. I think that gives us strength and that contributes to creating this particular space between us and Pakistan," he said. "Second is the way they responded actually. When India went to respond, we destroyed terrorist camps in response to the terror attack as part of a prevention strategy. You may call it revenge, you may call it retribution, but that ought to prevent further attacks." Gen Chauhan said Pakistan escalated the conflict into a fully conventional kind of a domain. "The escalation to a conventional domain was in the hands of Pakistan. Thus, it reduces its option to raise the threshold of this nuclear conflict," he noted. The top military officer said there is still space for expanding conventional operations. "The fourth evolving military challenge is increasing vulnerabilities to long-range vectors and long-range precision flights. There is currently no foolproof defense mechanism against ballistic missiles, hypersonics, cruise missiles, and large-scale attack by drones or loitering ammunition," he said. Talking about the changing dynamics of warfare, Gen Chauhan said India will have to be prepared for both old and new kinds of warfare. "The second evolving challenge from the military perspective is to keep a high degree of operational preparedness, 24/7 and 365 days," he said. Gen Chauhan also said there was total synergy among the Army, Navy and the Air Force during Operation Sindoor.
Economic Times
18 minutes ago
- Economic Times
Abhay Agarwal's top sectoral bets in a choppy market
"I would say that our markets on a global scheme of things are still quite small. We are at $5 trillion market cap where you have companies in US which are close to $4 trillion market cap, single company. So, we are on that growth path. The foreign investors understand that. Obviously, these kind of uncertainties related to tariff situation and daily news-based announcements about US threatening to put new tariffs or taking out old tariffs is going to keep the markets on their toes in the short term, but in the longer term we are going to be pretty okay," says Abhay Agarwal, Piper Serica. ADVERTISEMENT And yes, there is a lot of development and developments happening overnight and the markets are mature enough at least Indian markets to digest all of that. But US President Donald Trump has now slapped tariffs ranging anywhere between 25% to 45% on several countries globally. Also, there is a very important statement which has come in where Trump says that he is very close to make a deal with India. How do you see all of these developments for the domestic markets? Abhay Agarwal: From domestic market perspective, I have just got back from a two-week trip to Europe and what I can tell you is that if you just move out of this noisy situation that we are in, as you just mentioned tariff related announcements and the global uncertainty around that, the good news is that India is seen as a bright spot of growth not only for the short term but for next 5 years 10 years. So, the good news is that there is a lot of foreign capital that is looking to come into India, invest in India for the long term. These are not short-term traders. The timing of the entry remains a question mark because there are worries about Indian markets being overvalued, but at the same time there is this belief that the market cap and the GDP growth will continue to inch up. So, I would say that our markets on a global scheme of things are still quite small. We are at $5 trillion market cap where you have companies in US which are close to $4 trillion market cap, single company. So, we are on that growth path. The foreign investors understand that. Obviously, these kind of uncertainties related to tariff situation and daily news-based announcements about US threatening to put new tariffs or taking out old tariffs is going to keep the markets on their toes in the short term, but in the longer term we are going to be pretty okay. So, your house is actually known for capitalising on market fear. Now, on those lines I just want to know what is the kind of cash holding that is present and you have been a fan of pharma since very long time. So, if we talk about key sectors which are on your radar and is pharma still a part of it and also a few pockets in BFSI, what is your take? Abhay Agarwal: So, right now, we are about 8% cash and we are not looking to increase cash holdings because we continue to see good opportunities in some sectors and even in a raging bull market there is always a bear market also going on in some sectors or some specific stocks because of various reasons. So, we would like to focus on those situations, those opportunities. We are seeing enough of them. So, our average cash holding is about 5% to 6% that we like to maintain. In terms of pharma, yes, for last two years we have seen a lot of recovery in pharma companies' earnings and that has been because of five years of solid investment by large pharma companies in their business, a very friendly US FDA that is trying to make bridges with India to make sure that India is a very solid supply chain partner for US pharmaceutical business. And also, the Indian companies overinvested to their credit in building a very strong list of new launches and some of the Indian companies like Dr Reddy's if you look at it, they have like 150 potential new launches over next 18 months in the US. ADVERTISEMENT So, the analysts have not given the Indian pharma companies enough credit. Hopefully that will reverse. But we are very hopeful that just like last year the pharma sector was the best performing sector amongst all sectors in last calendar year, we are expecting a similar performance this year and probably next year also because some of the spaces like CDMO are still emerging. So, we are very bullish on the pharma sector continuing to do well because of very strong tailwinds there. On banking and financial services, we are seeing recovery. I think the bottom has been made as far as NPA cycle, credit cycle was concerned, collections were concerned. The self-regulatory body of small finance banks and microfinance companies has done a good job of taking away the froth by building in the guardrails. So, we see recovery now in microfinance companies as well as small banks which are trying to become universal banks now. So, this is a sector that we are now overweight in. We were zero weight for last two years, but we have increased our weightage. So, these are the two sectors that we are quite bullish and the third one is EMS which is again a space that we expect to continue to do well. ADVERTISEMENT We are in an ambiguous state as far as trade deal is concerned. We do not know whether or not trade deal is happening or a mini deal is happening or a final deal will happen in next three to six months. In this scenario, what should one do? Should wait and watch, just sit on cash, or deploy money in sectors which may not be impacted by this. Abhay Agarwal: Yes, if you are an investor, you are sitting on cash and you have a buy list, it is a good strategy to keep nibbling in a systematic way and that is what we are also doing. All the new money that we are getting, we are not deploying it at one go. So, we have a buy list in form of our model portfolio. But what we are doing is we are averaging out the buying over next six months. ADVERTISEMENT The problem is that this is such a news-driven market and the news changes every day. The sentiment changes every day. Every half an hour there is a new announcement. My personal view is that India and US will conclude a trade deal. However, it will not be a kind of a final deal. It will have nuances. There will still be moving parts. There will still be sectors which will not be covered by this trade deal. So, there will not be 100% certainty for a long period of time. But even if you get to 50% certainty, it will be a good sign for the market. It will show intent from US and India both to conclude this deal. But it may take time. So, no country is going to back off easily. So, a good strategy for any investor sitting on cash would be to deploy over next six months in a systematic manner rather than doing it all at once. ADVERTISEMENT That conviction gives a lot of confidence and when you say to deploy money in a staggered manner and create a strategy yes, results and earning season is around the corner. So while we define and draw the strategy considering the result and earning season, what is your take, what all sectors should one keep an eye on and once we get an opportunity get into it? Abhay Agarwal: Overall, I am quite hopeful that this result season will be a good result season because we are coming off a smaller base and we are coming off two if not three result seasons which kind of were underwhelming, though the last one I would say was not underwhelming, it was probably neutral. But my expectation from the current earning season which is just going to start now is that, we will have some outperformance by companies that have turned their business model to take care of new product launches both in India as well as overseas. I am expecting better results from banking and financial services industry than analysts are expecting from pharmaceutical, from EMS companies, from insurance companies I am expecting positive guidance. But at the same time there are some sectors that will continue to drag a little. The leading one is IT services. We will see cautious commentary again and an underwhelming growth guidance from IT services industry. Also, from large FMCG companies, I am expecting that the numbers will not be good, the margins will still be under pressure, but the guidance will be better. Similar for auto industry, the numbers may underwhelm a little but the guidance will be pretty positive because we have had a good monsoon a pick-up in rural income, rural consumption. So, overall, I would say this result season will be good. I would also suggest to astute investor not to punt on results. Let the results come out. Even if there is a stock reaction, make use of it rather than pre-empting the result before it is announced.
