According to AppleInsider , the Wistron factory is said to employ around 10,000 workers and is responsible for assembling the iPhone 14 series for Apple. When talking about the plan to withdraw from the factory in May, an unnamed Wistron executive said that Apple had made it impossible for Wistron to make a profit.
Buying Wistron's factory in India allows Tata to continue making iPhones for Apple
“Wistron has not been able to make any money from Apple’s business in India. They have tried to negotiate with Apple for higher margins, but as a smaller company compared to Foxconn and Pegatron globally, they do not have the necessary leverage,” the executive said.
In addition, another problem that made it difficult for Wistron to produce iPhones for Apple was that their factory was put on probation by Apple after witnessing Wistron's actions towards their workers and leading to riots in 2020. Wistron later reorganized its management and qualified to continue participating in a $1 billion support package from the Indian government to promote local production.
News of Wistron’s sale of its India plant comes shortly after Foxconn decided to pull out of its $19.5 billion joint venture with the country’s Vedanta. But overall, India is still benefiting from Apple’s plans to reduce its reliance on China.
With the move by Tata Group, the group will become the first Indian company responsible for manufacturing iPhones for Apple.
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