Apple already has a manufacturing unit in India through Wistron in Bengaluru, but it only makes low-priced iPhone SE and 6S models. Moreover, Foxconn - a Taiwanese company is already manufacturing smartphones for Xiaomi. It was not known whether the plans for Tamil Nadu included moving production out of China, where fears of the trade war with the United States have caused Taiwanese investors to look for alternatives, including returning to the island.
Apple's decision to start making iPhone outside of China may not surprise anyone given the current trade war going on between the U.S. and China. The report said the production will start early next year.
Apple spokeswoman Trudy Muller declined to comment.
Following the November 2017 launch of the iPhone X, 11 percent of iPhone sales were to customers upgrading from an Android. Apple and Foxconn did not respond to Reuters' queries on the development.
It should be noted that it's now unknown whether Foxconn is planning to move its existing iPhone assembly from China to India. Additionally, it is also not confirmed whether the production will be confined to assembly or include some component production in the country.
Foxconn has previously acknowledged that the dispute between the USA and China has hindered the company's ability to affordably continue its operations.
Foxconn has previously expressed concern over demand for Apple's flagship devices.