To comply with Apple's requirements, Pegatron plans to build factories in India, Indonesia and Vietnam

Tuesday, January 29, 2019

          

      January 28, according to the reports, after Foxconn decided to expand its business beyond China, another contract manufacturer of Apple now plans to do the same. Media reports say that Pegatron will build new factories in three new countries, India, Indonesia and Vietnam.

       At present, Pegatron accounts for about 30% of Apple's assembly orders. So far, the company has relied almost entirely on Chinese production, but now it intends to change that and expand its business to Indonesia, Vietnam and India.

      Regarding expansion outside China, Liao Zhizheng, general manager of Pegatron, said the company would soon announce more details. However, the speed of Pegatron's expansion will depend on the ongoing global trade disputes.

       Pegatron did not mention Apple in its statement, but it is hard to ignore the link between Pegatron and Foxconn. There are reports that high-end iPhone assembly will soon begin in India. In addition, the recent slowdown in China's smartphone and consumer electronics markets has led many companies to focus on other large markets, such as India.

        At present, Foxconn has factories in India and Vietnam, but it hasn't produced any Apple devices there. However, last week it was reported that Foxconn executives would visit India next month to discuss the manufacturing of the flagship iPhone in India.

        A report in December last year put forward a similar statement, saying that Apple plans to assemble "high-end iPhones" in India as early as 2019. At present, Wistron is Apple's sole manufacturer of the iPhone generation in India, which produces the iPhone SE.

         Foxconn recently filed regulatory documents showing that it has invested $213.5 million in an Indian subsidiary and acquired land use rights in Vietnam. This further confirms reports of the expansion of the production of the iPhone outside China.

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