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The
source, who asked not to be named because he was not cleared to
discuss matters publicly, said Apple and the Indian government
were, however, still discussing "the repatriation of long-term
profits from local sales and exports."
The government of the Indian state of Karnataka said on Thursday
it welcomed Apple's proposal to begin initial manufacturing
operations in tech hub Bengaluru, its state capital, hinting it
is moving forward with plans to assemble iPhones in India.
"Apple's intentions to manufacture in Bengaluru will foster a
cutting edge technology ecosystem and supply chain development
in the state, which are critical for India to compete globally,"
the Karnataka government said in a statement.
Karnataka IT Minister Priyank Kharge told Reuters on Friday he
believes Apple will "tentatively begin manufacturing iPhones in
the state by the end of April, or beginning of May."
A second source familiar with matters told Reuters, however,
that no agreement, or memorandum of understanding has so far
been finalised with the Karnataka government.
The person, who also asked not to be named, said if Apple did go
ahead with plans to begin assembling the iPhone, it was likely
to do so initially at the plant being set up by Wistron at
Peenya on the outskirts of Bengaluru.
Apple was not immediately reachable for comment.
Joyce Chou, a spokeswoman for Wistron, said its Bengaluru plant
is expected to begin producing smartphones some time in the
first half of 2017. She declined to comment on whether it would
be a captive iPhone assembly site.
Cupertino, California-based Apple, is keen to assemble its
phones in India, one of the world's fastest growing smartphone
markets.
Apple representatives met federal and state government officials
in India last week, as it is lobbies hard for tax and sourcing
concessions before it begins to assemble iPhones there.
Apple described its discussions with Indian officials as open
and constructive.
Any final decision on manufacturing in India is, however, likely
to depend on the government's willingness to concede ground on
the concessions Apple seeks.
Last month, Information Technology Minister Ravi Shankar Prasad
said India would consider Apple's request for incentives with an
"open mind."
(Writing by Euan Rocha; Editing by Jane Merriman/Ruth Pitchford)
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