Apple to start making iPhone 6 and 6S models in India
Apple to start making iPhone 6 and 6S models in India

Apple Inc. will soon start assembling iPhones in India for the first time, say government officials familiar with its plans, boosting the company's chances of gaining a foothold in the fast-growing market.

Taiwanese contract manufacturer Wistron Corp. will likely start making iPhone 6 and 6S models in the next four-to-six weeks at its plant in Bangalore, said an official of the southern state of Karnataka where the tech hub is located.

It will add Apple's cheapest iPhone model, the SE, to its assembly line in about three months, the official said.

The official said, "Almost all preparations have been done for launching Apple's first phase project in Bangalore through Wistron."

An Apple spokeswoman said, "We've been working hard to develop our operations in India. We appreciate the constructive and open dialogue we've had with government about further expanding our local operations."

A Wistron spokeswoman said the company doesn't comment on "rumor or speculation."

With sales cooling in China, long an engine for Apple's growth, manufacturing iPhones locally would help Apple address what analysts say is its biggest problem in India: its smartphones are simply too expensive for the vast majority of people.

Apple is also negotiating with New Delhi for its next level of production in India.

It wants to bring its component manufacturers to India to make parts and export finished phones, said the state official as well as a senior federal government official at the Trade Ministry.

Apple had sought tax concessions on the import of key components but the Indian government hasn't yet "accepted most of the demands of the iPhone manufacturer," Trade Minister Nirmala Sitharaman told lawmakers in a written submission to Parliament.

Apple Chief Executive Tim Cook in a call with analysts last month said the company is also "in discussions" to open retail stores in India, and that Apple intends to "invest significantly in the country and believe it's a great place to be."

 
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