Foxconn chairman Gou says he aims to step down in coming months

An employee holds a box of the Apple Inc. iPhone XS at an Apple store during its launch in Hong Kong China

An employee holds a box of the Apple Inc. iPhone XS at an Apple store during its launch in Hong Kong China

Terry Gou, chairman of Foxconn Technology Group, speaks at a groundbreaking ceremony for the $10 billion Foxconn factory complex on June 28, 2018 in Mt. It hopes to ramp up its sales in India by manufacturing locally which would let it dodge the 20 percent import duties.

"For Foxconn, the China market for iPhones is saturated, and labor costs are three times higher compared with India", said Karn Chauhan, a Gurgaon-based analyst at Counterpoint Research.

The firm said its billionaire founder would not be relinquishing his role as chairman, rebutting earlier media reports.

Gou also said on Monday that he plans to step back from daily operations to focus on broader strategy.

It is unclear how Apple's foray into manufacturing in India will affect its relationship with China, which has been its production hub for years with Foxconn and other partner companies.

When asked about his retirement plan at a shareholder meeting past year, Gou said he would not step down until the company's share price hit Tw$200 ($6.49). Due to Chinese competitors like Xiaomi offering advanced features at lower prices, Apple is losing its market share in the country.

He said his plans would be discussed with the board of Foxconn, the world's largest contract manufacturer, formally known as Hon Hai Precision Industry Co Ltd.

This story has been published from a wire agency feed without modifications to the text.