Apple will start building its top end smartphones in India starting in 2019, according to Reuters. The includes the iPhone X, XS, and XR. The phones will be assembled in Sriperumbudur, also known as Thiruperumbudur. Sriperumbudur is located in the state of Tamil Nadu, 40 km from the state capital Chennai. The phones will be manufactured by Foxconn.
Earlier, Apple had manufactured iPhone SE and 6S in India in 2017. However, the high-end phones including the iPhone X, XS, and XR were not being made in India, previously. Smartphone imports are taxed at an additional 15%-20%, making them much costlier as compared to Samsung and Xiaomi. Once the smartphones start to be assembled in India, they will not incur the additional import duties, bringing down prices.
As per a report from Bloomberg, Apple has been able to sell less than 1 million iPhones in India, in the first half of 2018. This compares to the 129.54 million phones it has sold worldwide, as per Statista. As per IDC, 33.5 million smartphones were sold in India during Q2 2018, which grew 20% year over year. It has to be seen what share of this market Apple is able to capture by this move.