Apple moves production AWAY from China: A quarter of new iPhones to be manufactured in India as more companies reduce reliance on Beijing

INTERNATIONAL DESK: One in four iPhones could soon be manufactured in India as Apple joins a growing list of companies seeking to reduce their reliance on China.

The tech giant is aiming to build more than 50 million phones in India annually within the next two to three years, according to the Wall Street Journal.

Despite the mass expansion, China will remain the largest producer of iPhones – which cost up to $1,599 – thanks to its mammoth Foxconn factory in Zhengzhou.

Firms have become increasingly worried about their overdependence on China, fueled by diplomatic efforts by the US and its allies to block Beijing’s access to advanced technology.

Last month it emerged Walmart had increased its imports from India while Microsoft’s LinkedIn axed its China-focused jobs app.

Apple has been gradually boosting its reliance on India – though it has faced challenges from poor infrastructure and restrictive labor rules.

Labor unions pushed back on calls by companies to implement a 12-hour work day similar to those in China.

But earlier this year Karnataka state decided to extend its limits to 12 hours from nine, though companies must have approval to do so. Under the new rules, companies can also employ women on overnight shifts without seeking government approval.

So far, the WSJ reports that Apple and its suppliers – which include Taiwan-based FoxConn – believe the transition has gone well.

A Foxconn plant is now under construction in the southern state of Karnataka and is expected to start operating in April. This location is set to make 20 million mobile handsets annually within the next two to three years, sources told the WSJ.

A second iPhone plant is also being planned – though it is still in the early stages.

Foxconn signaled its commitment to India in late November when it invested the equivalent of more than $1.5 billion in the country.

Research firm Counterpoint estimates that global iPhone shipments last year totaled more than 220 million. (MO)