Why did Apple’s Chinese staff exit India? Beijing had warned its officials…

By Admin

03 Jul, 2025

Apple’s strategic shift towards expanding its iPhone manufacturing base in India recently faced a surprising twist. Foxconn Technology Group Apple’s largest iPhone assembler has quietly asked hundreds of Chinese engineers and technicians to return to China, according to a Bloomberg report. The sudden pullback of this critical workforce raises concerns about the future of Apple’s India ambitions.

Beijing's Quiet Warning and Its Ripple Effects

While the exact reason behind this decision remains unclear, it comes shortly after the Chinese government reportedly advised its officials to restrict technology and equipment exports to India and Southeast Asia. This directive, suspected to be an effort to prevent manufacturing from shifting away from China, may have influenced Foxconn’s move.

Over 300 Chinese Staff Leave India

The withdrawal began nearly two months ago. So far, over 300 Chinese employees have exited India, significantly shrinking the on-ground team that was essential to Apple’s local production efforts. Notably, many Taiwanese support staff remain in the country, indicating a partial withdrawal rather than a full-scale exit.

A Blow to Training and Tech Transfer

The biggest concern tied to this exodus is the slowdown in training Indian workers and transferring key manufacturing technology. Although Apple’s iPhone production quality in India is unlikely to drop, Bloomberg notes that efficiency might be compromised. This could lead to higher production costs and possible delays in output as India works to scale up its manufacturing capabilities.

India’s Growing Role in Apple’s Global Supply Chain

India has emerged as a key player in Apple’s long-term supply chain strategy. Currently, around 20% of the world’s iPhones are manufactured in India. Apple aims to produce the majority of iPhones destined for the US market in India by late 2026. However, challenges persist. Former US President Donald Trump criticized this plan, arguing that iPhones for Americans should be made domestically though high labor costs and lack of skilled manpower in the US make this unrealistic.

Foxconn’s India Expansion and the iPhone 17

Foxconn is building a new iPhone plant in southern India, signaling Apple’s commitment to the country. The company had deployed skilled Chinese engineers to fast-track operations and train the Indian workforce an effort that is now partially reversed with the current staff pullback.

Tensions Between India and China Add to Uncertainty

India-China relations remain strained, despite minor improvements. Direct flights between the two countries have yet to resume, and India maintains visa restrictions and bans on Chinese apps such as TikTok. Meanwhile, China continues to restrict fertilizer exports to India, even as it lifts bans for other countries.

Will iPhone Production in India Take a Hit?

Although Foxconn has informed the Indian government about sending its Chinese staff back, no official reason was given. According to sources, the move hasn’t had a major impact on iPhone production so far. Still, the long-term implications remain to be seen, especially as Apple gears up for the iPhone 17 production phase in India.