Manufacturing iPhones in India costs the company lesser than expenditure involved in importing, because of the duty concessions from the government. It has been mentioned that Foxconn, which is also Apple's primary component manufacturer around the globe, is "within weeks" of starting the trial production of the iPhone X handsets.
Foxconn is expected to start the full-scale assembly at its factory located in the outskirts of Chennai and will invest close to $300 million for the initial production line.
"We are proud to be producing iPhone 7 in Bengaluru for our local customers, furthering our long-term commitment in India", said Apple in an e-mail to a news source. Wistron manufactures both of these smartphones at the same plant where it manufactures the iPhone 7.
He observes that the local manufacturing of iPhone 7 is about "revalidating Apple's India manufacturing capability before they scale up to other models". So, in an effort to overcome this, Apple has started assembling the iPhone 7, alongside the iPhone 6s at Wistron's Bengaluru facility back in March.
He added that Apple will make more money at the same price points, owing to higher margins now. The brand would instead use the extra profit in the more aggressive marketing push for better sales.
It was recently reported that Wistron received the government's approval for its INR 5,000 Cr proposal to expand its manufacturing capabilities with the aim of locally producing high-end Apple devices. "Apple is price conscious".
Right now, Foxconn has two facilities in India.
A spokeswoman for Apple didn't respond to emailed questions about India production.
The latest development also comes as a move by Apple to make the most from the world's second largest smartphone market.
Just last week, Apple launched a host of services including credit card, content subscription service and a digital video game platform.