"Widening iPhone manufacturing in India through Foxconn will allow Apple to hedge the risk of any new US trade policies", said Navkendar Singh, an associate research director at International Data Corporation.
Apple's high-end iPhones will be assembled at Foxconn's facility in Sriperumbudur town of Tamil Nadu.
Apple launched the pricey iPhone X last year, but has cut production of that phone since it began selling the newer versions, iPhone XS and XR, globally this year, industry analysts have said.
It should be noted that it's now unknown whether Foxconn is planning to move its existing iPhone assembly from China to India. And, this investment is expected to generate jobs for at least 25,000 people.
The Hindu recently reported it, wherein the newspaper underlined that Foxconn plant would be initiating the production of several iPhones.More news: Prince George Broke Three Royal Traditions This Christmas
After reports emerged that iPhone is suffering from weaker sales, Apple's vice president of product marketing Greg Joswiak said that iPhone Xr is the most popular iPhone but did not disclose any sales figure to back up his claims.
Apple did not immediately respond to a Fortune request for comment on the report. "Part of this belief was based on the company's size and ability to both negotiate pricing and terms with its manufacturers and move its manufacturing out of China", Mr Forte wrote.
"Based on the initial sales, iPhone XR took the same share of iPhone sales as earlier models in their first month on the market", CIRP co-founder Josh Lowitz said.
The partnership will make it possible for Apple to start the assembling of its upcoming iPhone models in India.
Foxconn wants to hedge its risks in the wake of what has been happening between China and the US.