Apple does have a manufacturing partner producing iPhones in India. However, Wistron only makes the cheaper iPhone 6S and iPhone SE models in the country. A new report today claims that Foxconn, Apple’s biggest contract manufacturer, could begin manufacturing flagship iPhones in India next year.

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Like many manufacturers, Apple moved production of its handsets to India in order to get around the tariffs imposed by the Indian government on imported handsets. India is a lucrative market and is also price sensitive. Having its cheaper models manufactured there enabled Apple to ensure that they were price competitive against the likes of Samsung and the Chinese rivals.

Foxconn doesn’t manufacture iPhones in India but a new report claims that it may begin assembling top-end iPhones in the country next year. It does make phones for Xioami in the country. The flagship devices in the iPhone X series may be manufactured there.

This would allow Apple’s top handsets to be cheaper in the country, potentially allowing the company to further expand its reach in the Indian market. This may also serve as a hedge if the United States ever imposes tariffs on China that impact the iPhone. The possibility has been raised before and that could lead to iPhones getting more expensive. Manufacturing its high-end models outside China would provide Apple with a way to get around the tariffs should that ever happen.

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