Hon Hai to set up iPhone line in India

Apple's new iPhoneXR represented 32 percent of Apple phone sales in the first 30 days it was available

Apple's new iPhoneXR represented 32 percent of Apple phone sales in the first 30 days it was available

Earlier this week, rumors suggested Apple and Foxconn are moving part of the production of 2019 iPhones from China to India.

That is because Apple might soon start the production of the latest iPhones in India, South India to be precise. The report also highlighted that this investment would be creating approximately 25,000 employment opportunities. However, the company has kept its higher-end iPhone production in China, where iPhones have been assembled since their initial release in 2007. Months later, its budget iPhone- the iPhone XR-became the company's best selling iPhones this year.

The Hindu newspaper first reported on December 24 that the Foxconn plant would begin manufacturing various models of the iPhone.

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.

As per Counterpoint, Apple has emphasised on retailing lower-end phones in the Indian market as the fact that more than half of its sale volume is driven by models older than iPhone 8.

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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 USA in a particular period in October 2018, just about a month after the release of the device.

Last year, iPhone loyalists made up 86 percent of upgrades, while only 11 percent of buyers were previously on Android.

Some analysts have concerns that the 2018 iPhone models have sold poorly. Meanwhile, Apple's iPhone XS models accounted for 35% of sales.

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

The decision to move assembly from China to India could be prove to be critical to keeping iPhone costs down. Assembling iPhones in India will also allow Apple to come back strong in the local smartphone market with reduced price tags for its devices.

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