Apple would like to reduce its dependence on China. In the past quarter, the company was unable to meet demand for some new iPhones because factories in China were closed. That is why Apple and its various production partners are increasingly looking outside China: to Vietnam and India, for example.
The major Apple supplier Foxconn already had an iPhone factory in India, and it is now expanding. Apple is investing about 700 million dollars (660 million euros) in it, Bloomberg reports.
The Indian factory would soon account for 100,000 jobs, compared to the 200,000 jobs provided by Foxconn’s large Chinese iPhone factory. Apple would like to make iPhone parts in the Indian factory, assemble iPhones and perhaps also cars.
1 billion to Germany
Apple also reports an investment of 1 billion euros in its European Silicon Design Center in Munich. That laboratory was announced by Apple two years ago, when it already involved an investment of 1 billion euros. There is now 1 billion on top of that.
With the extra money, Apple wants to set up more R&D development centers at its German laboratory. Where Apple in Asia mainly invests in manufacturing, in the west more is invested in the company’s own knowledge and skills.
Apple has invested a lot of money and manpower in its own chips in recent years, and that is paying off. Virtually every Apple device now comes with its own Apple chip. They are usually faster and more economical than the competition, and the profit margin for Apple will be greater.
“Our engineers in Munich are at the forefront of innovation and inventing new technologies that are at the heart of the products we make,” said Apple CEO Tim Cook. “Apple has been in Munich for over 40 years and we have never been more excited about what the future holds here.”
Leave a Reply