Foxconn to begin assembling top-end Apple iPhones in India in 2019

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The work will take place at Foxconn's plant in Sriperumbudur town in the southern state of Tamil Nadu, said the source, who is not authorized to speak to the media and so declined to be named.

Foxconn has been assembling lower-end iPhones, including the iPhone SE, in India.

Reuters reported that Foxconn now makes Xiaomi phones in India, while Apple already uses Taiwanese Wistron Corporation's facilities in Bengaluru to manufacturer the company's lower-end iPhone SE and iPhone 6S devices. The report underlines that Foxconn will assemble only the most expensive models like the flagship iPhone X family. The report also highlighted that this investment would be creating approximately 25,000 employment opportunities.

Apple's decision to start making iPhone outside of China may not surprise anyone given the current trade war going on between the USA and China. Foxconn said it did not comment on matters related to current or potential customers, or any of their products. After the iPhone 8 and 8s were released in September 2017, 12 percent of iPhone buyers upgraded from an Android phone, and when the iPhone X was released in November 2017, that number was 11 percent.

Complete details about Apple's deal with Foxconn are not yet clear.

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.

For Apple, widening assembly beyond China is critical to mitigate the risks of the Sino-U.S. trade war. Moving assembly on the more powerful devices, including the iPhone XS and iPhone XS Max, marks an important change in policy for both Foxconn and Apple.

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

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