Taiwan-based Foxconn Technology Group will start trial production of iPhone X range devices in its factory on the outskirts of India’s southern city of Chennai. Production of its phones in India will allow Apple to avoid import duties of 20 percent and also meet the 30 percent local sourcing rule that is mandatory to open its own stores in the country.
The Indian assembly line of Foxconn’s Hon Hai Precision Industry Co., will serve local and export markets by the time Apple announces its next iPhone models in September. Foxconn will invest close to $300 million to set up production for Apple, and ramp up investments as capacity expands. India will cross half-billion smartphone users this year.
Apple is gradually diversifying its manufacturing and assembling facilities away from China, with India being a natural alternative. This move will also make iPhones more affordable in India.
