Apple now relies on Foxconn, a Taiwanese electronics manufacturer with factories in China, Brazil, Malaysia and other countries around the world, to assemble its iPhone devices.
As per Counterpoint, Apple has emphasised on retailing lower-end phones in the Indian market as the fact that more than half of its sale volume is driven by models older than iPhone 8. The report also highlighted that this investment would be creating approximately 25,000 employment opportunities.
The other source declined to be named as this person is not authorised to speak to the media.
On Wednesday, Tamil Nadu Chief Minister Edappadi K Palaniswami hinted at the possibility of Foxconn making iPhones in its plant in the state.
The Hindu recently reported it, wherein the newspaper underlined that Foxconn plant would be initiating the production of several iPhones.
Reuters reported that Foxconn now makes Xiaomi phones in India, while Apple already uses Taiwanese Wistron Corporation's facilities in Bengaluru to manufacturer the company's lower-end iPhone SE and iPhone 6S devices.
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But the standout aspect of the XR's launch is this new model drew in a higher percentage of Android fans than any Apple device in years.
This year's top-tier iPhone XS and XS Max models, which start at $999 and top out at a whopping $1,449, meanwhile took a 35 percent share of the iPhone market in the month following the cheaper XR's release.
Full details of Apple's deal with Foxconn are not yet clear and could change. Additionally, it is also not confirmed whether the production will be confined to assembly or include some component production in the country.
Apple spokeswoman Trudy Muller declined to comment for this story.
Foxconn has previously expressed concern over demand for Apple's flagship devices.