Wistron, Apple's supplier, has reportedly shut down iPhone production in India. According to the Economic Times report, Wistron was struggling to make profit in the region under Apple's terms.
Wistron could not make money from Apple's business in India. It has tried to negotiate with Apple for higher profit margins, but being a smaller player compared to Foxconn and Pegatron globally, it did not have the necessary leverage.
In India, Apple iPhones have so far been manufactured by three major Apple suppliers: Foxconn, Pegatron, and Wistron. According to Bloomberg, India accounted for seven percent of Apple iPhone production in 2022.
Wistron entered the Indian market in the year 2008. It started with a repair facility for various devices it manufactured, including PCs, laptops, and servers. The company expanded its operations in 2017 and started manufacturing iPhones for Apple.
A TrendForce report earlier this month said that Apple may manufacture the iPhone 15 and iPhone 15 Plus models in India. It stated that the phones will be assembled by the Tata Group. The report also added that Tata's entry into the iPhone assembly business means Wistron's exit from the country. Don't miss out, Tata Group has already bought Wistron's iPhone factory in Bangalore. The latest expert group report is consistent with these earlier developments. It says that Westron, being a small player compared to Foxconn and the Pentagon, has found profitability difficult to achieve. The report quotes an executive who said Wistron lacked effective systems for measuring demand and shipping products to different units.
In addition, Wistron faced management challenges and reportedly had trouble retaining personnel at its Kolar, India facility. According to the report, differences in business culture between China and India also contributed to the challenges facing the company.
Meanwhile, another Apple supplier, Foxconn, has bought a large tract of land on the outskirts of Bengaluru, India's tech hub. The company has bought a 1.2 million square meters (13 million square feet) land in Devanahali, near Bengaluru airport, India's tech hub.
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