Apple Contractor Wistron Corp May Start Making iPhone 6/6S In India In 2 Months: Reports

Apple iPhones will start getting assembled in India soon, according to reports. Apple contractor, Wistron, is expected to start assembling older generation iPhones — iPhone 6 and iPhone 6S in the next four-to-six weeks, while the company’s cheapest phone — iPhone SE will be added to assembly lines in three months.

“Almost all preparations have been done for launching Apple’s first phase project in Bangalore through Wistron,” a government official of the country’s southern state of Karnataka, familiar with Apple’s plans told the Wall Street Journal Thursday.

Read: Apple's 'Make In India' Plan Hits Hurdle As Indian Government Denies Concessions

Apple has gone back and forth with the Indian government over excessive tax concessions it has sought in the country including manufacturing duty exemptions and no taxation on components and service/repair for a period of 15 years.

When asked whether the Indian government had accepted the company’s demands in the parliament Wednesday, the Commerce and Industry Minister Nirmala Sitharaman replied with a simple “No.”

Even Apple’s official answer on the subject has been vague at the best, “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 spokesperson told the Journal Thursday adding that the company doesn’t comment on “rumor or speculation."

Read: Will Apple Make iPhones In India?

While Apple is focusing more on India ever since its sales started declining in China, it is still unclear as to how will it deal with manufacturing regulations in the country. Even if Wistron starts operations in India, it would just involve assembling and not manufacturing of phones.

The situation is a little complicated for both the Indian government and Apple. On one hand, if the government grants Apple excessive concessions, other manufacturers, such as Vivo, Oppo and Xiaomi, which are already manufacturing their phones in India might seek exeptions too. On the other hand, Apple can’t miss the boat on the Indian smartphone market, which is the fastest-growing smartphone market in the world, growing at 18 percent in the last year, according to Counterpoint Technology Market Research report published in January.

Will the company restrict its assembly in India to lower-end smartphones or will it cut down on its profits share to capture the Indian market? We might get to know soon.