Foxconn to start premium Apple iPhone manufacturing in India next year

Foxconn to start premium Apple iPhone manufacturing in India next year

Today, Reuters confirmed the Taiwanese supplier and contractor will use its plant in Sriperumbudur, a town in the southern state of Tamil Nadu.

If this goes ahead, it will help Apple manufacture more iPhone models in India, helping them meet 30% requirement of locally-manufactured products in order to get clearance for opening retail stores in the country. And, this investment is expected to generate jobs for at least 25,000 people.

Apple is bringing its iPhone production to India partially thanks to the looming threats and impacts of the China-U.S. trade war.

Apple's cheaper iPhone models (SE and 6S) are already made in India, but this is the first time newer models, like the X family, will be produced there.

No doubt, Apple is seeing a decline in its overall sales volumes across the world. The iPhone XS and XS Max had together accounted for around 35%.

Consumer Intelligence Research Partners (CIPR) is the organization that did the study and according to it, the iPhone XR sold as much as 32% of all iPhones sold in the U.S. in a particular period in October 2018, just about a month after the release of the device. During its first month, the device attracted 16 percent of Android users, while the iPhone X only had 11 percent during the same initial period of availability.

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Full details of Apple's deal with Hon Hai are not yet clear and could change.

Apple now relies on Foxconn, a Taiwanese electronics manufacturer with factories in China, Brazil, Malaysia and other countries around the world, to assemble its iPhone devices. With that said, it's unclear if this means all production of iPhones have been shifted from China to India, or if the Indian manufacturing line is merely acting as a supplement.

Hon Hai said it does not comment on matters related to current or potential customers, or any of their products.

Apple shares climbed 7 percent Wednesday, finishing the day at $157.17.

Foxconn has previously expressed concern over demand for Apple's flagship devices.

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