Apple to start making high-end iPhones in India next year

Experts believe that the iPhone XR was created to divert the owners of Android-devices

While Apple has previously assembled some of its low-end iPhones like the SE and 6S in India, it's been through another contract manufacturing firm. It already makes phones for Chinese handset maker Xiaomi Corp at its Sriperumbudur plant.

China trade war is bad news for tech companies which have existing manufacturing facilities in China and thus face extra tariffs to sell into the United States market.

Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), is to assemble the most expensive models, such as devices in the flagship iPhone X family, the source said.

Apple now contracts Wistron Corp., another Taiwanese company, to produce the less expensive iPhone SE and iPhone 6S in Wistron's technology hub in Bengaluru in southern India. The minister also said the expansion will create as many as 25,000 new jobs.

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Truth be told, the news shouldn't come as too much of a surprise, especially given that Apple executive Greg Joswiak a few weeks back revealed that the iPhone XR has been Apple's "most popular iPhone each and every day since the day it became available". The U.S. and China are at odds over trade and there has been some suggestion that if a full-blown trade war between the countries erupts, tariffs on iPhones could drive Apple's prices up significantly.

Apple did not immediately respond to a Fortune request for comment on the report. Foxconn's Longhua Science and Technology Park in Shenzhen, China, is now producing the majority of the iPhone devices for Apple.

Indian taxes on import of devices and components have also heightened Apple's headache in a market where it has only a 1 percent share by smartphone shipments. The overall iPhone production in the fourth quarter of this year will reach 72 million units, lower than the previous forecast of 77 million units, mainly because the new iPhone demand is quite low.

But despite these developments, Apple would be concerned about the declining sales of iPhones overall.

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