Apple already has a manufacturing unit in India through Wistron in Bengaluru, but it only makes low-priced iPhone SE and 6S models. In this regard, Foxconn already informed that the financial conflict between the USA and China make it impossible for Apple to continue its operations in the most-populated country in the world.
"Widening iPhone manufacturing in India through Foxconn will allow Apple to hedge the risk of any new US trade policies", said Navkendar Singh, an associate research director at International Data Corporation. Moving assembly on the more powerful devices, including the iPhone XS and iPhone XS Max, marks an important change in policy for both Foxconn and Apple.
This is a substantial 33 percent jump in the number of Android users who switched to iOS after the iPhone 8 and iPhone 8 Plus were launched a year ago, and a whopping 45 percent increase when compared to Android switchers in the month after the launch of iPhone X.
The flagship iPhones are not the first iPhones to be assembled in India.
The investment may create as many as 25,000 jobs, he added.
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The report further states that the production would begin as early as 2019 at Foxconn manufacturing unit in Sriperumbudur, a town in Tamil Nadu.
According to the report, the iPhone XR did better than the iPhone X, iPhone 8 and iPhone 8 Plus in terms of sales that accounted for Android switchers.
Until now, Apple has only assembled the lower-cost SE and 6S models in India through Wistron Corp's (緯創) local unit in the Bengaluru technology hub.
Apple spokeswoman Trudy Muller declined to comment. It might be set up to handle device assembly like Foxconn's Zhengzhou plant, but Apple might potentially also shift other tasks such as component production to the complex to help mitigate risks from U.S. This latest development with Foxconn could be a move by Apple to expand its mobile share in India, the world's fastest growing smartphone market.