Apple partner Wistron is selling its iPhone assembly factory in India

Apple partner Wistron is selling its iPhone assembly factory in India because Apple’s terms prevent it from making a profit in the region, according to the Economic Times (a subscription is required to read the article).

“Wistron has not been able to make any money from the Apple business in India,” an executive said. “It has tried to negotiate with Apple for higher margins, but being a smaller player as compared to Foxconn and Pegatron globally, it did not have the necessary leverage.”

Last November, Inc. reported that Tata Group an Indian conglomerate, has started talks with Wistron, one of the three Apple vendors in India, to buy its manufacturing facility in Karnataka, India.

If the transaction goes through, it will help Tata ramp up the manufacturing capabilities of group company Tata Electronics (TEPL) in precision engineering. Inc. says it should be noted that TEPL is already a components vendor for Apple’s iPhones and plans to also deal with other large manufacturers from Korea and Japan as part of a “larger electronics ecosystem.”