Top American mobile phone manufacturer Apple Inc will assemble the high-end Apple iPhones through local unit of Foxconn in India in 2019.
According to a familiar source, this will be the first time that Taiwanese contract manufacturer will have made Apple iPhones in the country.
Foxconn will be assembling the most expensive flagship models from the iPhone X family. This could accelerate Apple’s business in India taking it to new heights.
The assembling of Apple iPhones will take place at Foxconn’s plant in Sriperumbudur town in the southern state of Tamil Nadu.
Foxconn will invest 25 billion Indian rupees to expand the plant, including investment in iPhone production, Tamil Nadu’s Industries Minister M C Sampath told news sources.
The investment in iPhone production may create as many as 25,000 jobs, he further added.
The other source declined to be named as this person is not authorized to speak to the media. A third source confirmed Foxconn planned to assemble iPhones in India.
The Hindu newspaper first reported on December 24 that the Foxconn plant would begin manufacturing various models of the Apple iPhone.
Reuters is first to report the size of the investment and the kind of phones to be assembled.
Lower-end Apple iPhones
Cupertino has only assembled the lower-cost SE and 6S models in India through Wistron Corp’s local unit in the Bengaluru technology hub.
Its sales in India have also been focused on lower-end phones – more than half of its sales volume is driven by models older than the iPhone 8, launched last year.
Apple launched the expensive iPhone X last year but has cut production of that phone. This year new variants of iPhone family was launched. This included iPhone XS and XR.
There is a huge potential to make older iPhone X version in India as it sells cheaper models and can help in earning huge market share. Full details of Apple’s deal with Foxconn are not yet clear and could change.
It is not known if any of the iPhone assembly is being moved from existing Foxconn factories in China and elsewhere. It is also unclear whether the production will be confined to assembly or include any component production in India.
Apple spokeswoman Trudy Muller declined to comment for this story.
Foxconn said it does not comment on matters related to current or potential customers, or any of their products. It did not immediately respond to a request seeking confirmation that it was investing $356 million in Tamil Nadu.