Apple Inc will begin to assemble its top-end iPhone models in India through the local unit of Foxconn in early 2019, as Apple is partnering with the local branch of Foxconn. They have already managed a large chunk of Apple’s existing iPhone manufacturing, according to a report from CNBC.
Reportedly, Foxconn will be building the most expensive iPhone models such as the flagship iPhone X family, the purpose is to potentially taking Apple’s business in India to a new level. The assembling of iPhones will take place at Foxconn’s plant in Sriperumbudur town in the southern state of Tamil Nadu. They have already been making phones for Xiaomi Corporation in India and will invest approximately 25 billion Indian rupees ($356 million) to expand the plant including the investment in phone production.
Apple has been assembling phones since 2017 in India, started with the iPhone SE and followed by the assembling of iPhone 6S earlier this year. In recent years, the Indian Government has put high tariffs on imported smartphones meanwhile they offer cheap import rates on smartphone parts in order to encourage manufacturers to made devices in India and to increase the country’s manufacturing business.
In order to avoid those high tariffs, Apple planned to build the iPhone SE and 6S in India. It might be possible that Apple wants to try a similar strategy with its more feature-filled high-end models. Moreover, Apple is making its way into the Indian market with its pricey phones unable to compete with cheap and popular models from brands like Samsung and Xiaomi.
The most popular phone of Apple in India is undoubtedly iPhone 6 and on the other hand, the company is trying to boost sales of its more expensive new models. It is not yet clear whether the iPhone X cheaper model will build in, but by building phones in India Apple is at least trying to expand its market.