Apple’s India manufacturing plans hang in the balance

New Delhi: The second phase of Apple Inc.’s plan to make the iPhone in India is hanging in the balance as the firm awaits government approvals and tax breaks that it says are key to making a profit, a person aware of Apple’s plans for the market said.

“Else, it doesn’t make sense for Apple to import components by paying heavy duties from other parts of the world to assemble and sell here,” the person said on condition of anonymity.

In the first phase of its India plan, Apple started working with Taiwanese contract manufacturer Wistron Corp. to assemble the iPhone SE in Bengaluru.

If Wistron doesn’t find it a profitable proposition and decides to stop manufacturing, Apple will discontinue phase one, said the person cited above.

Wistron declined to respond to a detailed questionnaire seeking comments on the duration of its contract with California-based Apple and the sustainability of the business model.

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