Foxconn is one of the biggest contract manufacturers on the planet and it has been manufacturing iPhones for Apple for quite some time now. It may now be looking to shift some of that manufacturing business to India. According to a new report, Foxconn is looking to shift iPhone manufacturing to the South Asian country as Apple seeks to reduce its reliance on manufacturing in China.

Advertising

Many analysts had expressed concerns about iPhones getting more expensive if tariffs were imposed due to a trade war between the United States and China. One of the ways to prevent a price hike due to the tariffs was to move iPhone production outside the People’s Republic.

The Wall Street Journal reports that Foxconn is mulling production of iPhones in India as Apple seeks to reduce its dependence on China. A report last month suggested that Foxconn was going to make a $214 million investment in a local manufacturing plant.

It adds that senior company executives, perhaps even Chairman Terry Gou, “plan to visit India after next months’ Lunar New Year to discuss plans.” Foxconn may be thinking about producing higher-end models in the country. Wistron, another Apple manufacturing partner, currently produces the low-end iPhone SE and iPhone 6s in the country.

Foxconn’s decision to move high-end iPhone production to the country may also serve another purpose. India imposes significant taxes on imported handsets which adds to the price of iPhones in the country. Local production would help Apple compete more effectively on price in the premium segment.

Filed in Apple >Cellphones. Read more about .

Related Articles on Ubergizmo