It appears Apple is trying to turn India into one of its key hubs for global production capable of assembling the most modern flagship iPhones. This is no doubt a risk-mitigating move given that China – where most of the company’s production activities take place at the moment – is currently in a trade spat with the US.

Apple India
Apple is trying to turn India into one of its key hubs for global production

Following a several-week-long trial, the tech giant has now started making the iPhone XR at the Foxconn facility located near Chennai. It also plans to begin production for the iPhone 11 series in the future. Apple will reportedly export the devices to other markets, likely Europe where it has been testing the water over the past few months with the iPhone 6s and 7 models.

By producing the iPhone XR locally, Apple can save around 20% in import duty, however, officials from the company have said there won’t be any price reduction for any locally-made device, be it the XR or any iPhone model in the future.

India Iphone
There won't be any price reduction for locally-made iPhones, however

Foxconn is the second global contract manufacturer of Apple to operate in India. The first one, Wistron from Taiwan, has been producing iPhone at a facility near Bengaluru since 2017, but that is limited to older models only.

China and the US are allegedly entering a trade deal in which the latter will suspend a proposed tariff escalation on imported products from China. This will no doubt hurt Apple since the majority of its iPhones are assembled in the Asian country. By putting more emphasis on manufacturing in India, the company will have an alternative base.

Apple India
No doubt this move from Apple is intended to mitigate risks following tension between China and the US

The Foxconn facility has the capability to create the latest iPhone models whose prices can go as high as over Rs 1 lakh each. Terry Gou, founder of Foxconn Technology Group, said earlier this year that mass production of the iPhone, including newer models, would kick off in India within 2019, and it seems that goal has now been achieved.