Apple is meeting government officials this week

Jan 23, 2017 16:06 GMT  ·  By

Apple’s intention to expand iPhone manufacturing to India isn’t something new, as the company has been considering contracting partners from the country for quite a while now. The latest report from Digitimes claims that Apple has finally picked its first iPhone manufacturer in India.

As it turns out, Wistron will be Apple’s first iPhone manufacturer based in India, although the two companies have yet to reach an official deal. Wistron, a major original design manufacturer from Taiwan, was the manufacturing arm of Acer Inc. before it was spun off in 2000.

The company offers a variety of support services related to design, manufacturing and after-sales service for information and communication technology. Wistron was previously involved in the production of the iPhone 5c and iPhone SE, although there was talk of the company being a manufacturer of the iPhone 6, the iPad or Apple Watch.

The Taiwan-based firm expanded to India, as well as China, in preparation for a deal with Apple. Most likely, parts for the upcoming iPhone will be manufactured at the existing Wistron plant in Bangalore.

Wistron’s shipments are expected to grow in 2017

The CEO of Wistron, Simon Lin, didn’t confirm the information, but did mention that the firm’s shipments of smartphones, servers, desktops and Internet of Things devices are expected to grow in 2017, hinting at a deal with Apple. Foxconn has been Apple’s main manufacturer for quite some time now, but the company will now become a secondary OEM if demand increases.

The report also mentions that Apple is meeting with government officials on Wednesday to discuss concessions before signing a deal with Wistron. Apple is reportedly seeking exemption from several taxes and duties on imports, but doesn’t regard these as a set of demands.

Indian government officials might not be willing to offer Apple preferential treatment, because it would lead to smartphone competitors, like Samsung, requesting the same conditions.