iPhone maker selling factory in India, says Apple isn’t allowing it to make enough money

Apple supplier Wistron has ended its iPhone assembly contract, with sources saying the company didn’t see long-term profitability in being an assembler in India, and Apple wasn’t open to negotiating higher margins to make the business profitable in the country.

According to India’s Economic Times, Wistron is in the process of selling its iPhone assembly unit in Kolar, near Bengaluru. The assembler decided to pull out of its contract with Apple after not being able to make enough money, the report claims.

Wistron previously assembled the iPhone for Apple in China, but sold its factory to rival Luxshare in 2020.

Apple has been expanding its manufacturing efforts in India over recent years, with the country assembling low quantities of the iPhone 14, as well as some older iPhone models, including the iPhone 13 and iPhone SE.

Reports have previously suggested that Apple is aiming to produce 25 percent of all iPhones in India by 2025, with trade tensions between the U.S. and China a key driving force between the move.

Despite the push, earlier this year it was reported that Apple was disappointed with the quality of iPhone production in India, with the Cupertino company hitting several roadblocks in scaling up iPhone production in the country, including quality issues that saw 50 percent of casing rejected for not meeting quality standards.