Apple’s iPhone production shift leaves ghost town in China

The logo of Foxconn is seen outside the company’s building in Taipei, Taiwan November 10, 2022. Photo by Reuters/Ann Wang

Apple supplier Foxconn’s industrial park in Nanning, Guangxi, has been deserted, heavily impacting the local economy, as production of the iPhone is being moved away from China.

The facility, once the centerpiece of Nanning’s economy, now stands empty, while its surrounding streets and residential buildings remain largely vacant, as depicted in a video shared by news channel China Observer last Friday.

Although some nearby apartments are available for occupancy, they have struggled to attract buyers despite offering discounts, as the area has lost its appeal now that most of the facility’s employees having left.

During its heyday a few years ago, the complex boasted a workforce of 50,000 and consumed vast resources to sustain them, a local told China Observer.

However, with Apple’s strategic decision to shift production away from China, the Nanning complex was among the first to face downsizing as it was deemed under-utilized by Foxconn.

Foxconn, Apple’s primary supplier, has been shifting its production lines to other Asian nations in recent years amid tensions between the U.S. and China.

One of these destinations is India, whose iPhone production has doubled from 2022 to $14 billion last year, accounting for 14% of the Apple’s total iPhone output, Bloomberg News reported last month.

Meanwhile, iPhone production in Zhengzhou, Henan, where the largest iPhone factory is located, plummeted by 60.1% year-on-year to 6.65 million units in the first quarter, the South China Morning Post reported, citing data from Zhengzhou’s local customs authority.