Apple reportedly began manufacturing its iPhone 11 at the Foxconn plant near Chennai. This is the first time that Apple has made its flagship phones in India. The move is seen as a major boost to the Indian government’s Make in India initiative.

Currently, India has more than 500 million smartphone users, making the country one of the most important markets for smartphone manufacturers. Samsung, Xiaomi, and Vivo have already invested heavily in the country. Now, the growing demand is attracting Apple and its suppliers.

“Significant boost to do in India! Apple has started manufacturing iPhone 11 in India, bringing a top-of-the-line model for the first time in the country, “Minister of Commerce and Industry Piyush Goyal wrote on Twitter.

Apple’s decision to start manufacturing the iPhone 11 in India can be seen as an effort to move production from China to India. According to previous reports, the iPhone maker plans to change almost a fifth (~ 20 percent) of its production capacity.

According to a new report by The Economic Times, the company will increase production in stages. Additionally, the Cupertino giant may consider exporting iPhone 11 units that are made in India to other countries.

Manufacturing iPhones in India saves Apple a 22 percent import tariff. Although the company has yet to announce any price cuts, industry executives informed ET that Apple may cut prices later.

Additionally, Apple plans to manufacture the iPhone SE (2020) at the Wistron plant near Bangalore. This plant launched domestic Apple manufacturing in India in May 2017 with the old iPhone SE. Meanwhile, the company started assembling iPhone XR in India last October.

While Apple, Foxconn, and Wistron contract manufacturers have their presence in India, a report earlier this month hinted that Apple’s second-largest contract manufacturer, Pegatron, has registered its Chennai affiliate, Tamil Nadu. We can witness the expansion of local production in these plants also in the future.

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