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iPhone factory in China to expand, double production

Anjum Dhir Kulkarni


Foxconn’s $1.1 billion expansion will double the manufacturing unit’s output from its current 200, 000 iPhones a day


Published on Dec 27, 2011

Apple's chief manufacturer, Foxconn, has confirmed that it is doubling the production capabilities of one of its factories. 

The Foxconn factory in Zhengzhou, Henan, China was opened earlier this year and is responsible for the production of a large number of Apple’s iPhones.

According to a report in China Daily that Electronista came across, the factory is already in line for expansion, and is all set to become the largest unit of its kind, capable of producing up to 400, 000 iPhones daily.

China Daily reported that Foxconn and Government officials were working on a $1.1 billion expansion plan for the factory.

The planned expansion will double the capacity of the factory and with it its output.

The move to expand the factory has many motives, including reducing labour costs and increasing employment opportunities. Currently, the factory employs 130, 000 people and is slated to earn sales revenue of $20 billion in the coming year. 

For Apple and its consumers, the Foxconn expansion spells good news too. With an increase in its capacity, the factory in Zhengzhou will be able to produce 400, 000 iPhones a day or approx. 32 million per quarter.

At this rate, Apple will be able to penetrate developing markets in Asia, including those in India and China, with ease. For the consumers in these countries, it simply means being able to get their hands on the newest devices at the same time as their peers in the US and Europe. 

There’s good news for loyalists of other tech brands as well. Since Foxconn also makes gadgets for Google, Samsung, Microsoft and Sharp at its factory, the production of Android and Windows devices will get a boost too. 

 

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