Foxconn, a 10 billion dollar facility in India, is on the verge of closing a deal under which Apple iPhones will be manufactured in India. The facility is located at Maharashtra on a 1,200 acre plot. Foxconn will start its operations about 18 months after the contract has been signed. Interestingly, at the same time, it building ties with Apple to start manufacturing the iPhones in India.

Foxconn closing deals to build iPhones in India.

Meanwhile, Apple is also seeking to sell refurbished smartphones for Indian market. The reason is the low price that caters to the Indian market. The average per capita income of the population is $1500 and 70% of the average phones sold in India are under or up to $150. Apple was initially doing well in India. But then from the previous quarter, the company speculated that sales might go down on yearly basis. India will be the second biggest market after China, anytime soon, leaving behind US. That is why Tim Cook sees it’s a bigger opportunity where most of the population is under 25 with 4G LTE spectrum on the go.

Apple is also planning to open stores in India. As per Past-laws, a single brand has to keep 30% of its inventory sourced from local suppliers. This law made Apple to not to open its stores for Indian market. These rules are no more applicable now. So it is good opportunity for Apple to open its retail stores and earn good name in the country.