Apple reportedly views Vivo as a rival in the Indian market, which has seemingly impacted Vivo’s chances of securing a significant deal with the Tata Group. Vivo was aiming to collaborate with Tata Group to gain local manufacturing support and increase its investments in India.
The plan reportedly involved Vivo selling a 51 percent stake to Tata Group, which would have allowed the company to operate with less government scrutiny. However, according to a report by Times of India, the deal has now been called off, primarily due to Apple’s influence.
Apple’s Role in the Deal’s Cancellation
Apple, which manufactures iPhones in India through partners like Wistron (recently acquired by Tata Group), appears to have been concerned about Vivo’s potential partnership with Tata Group. The Cupertino-based tech giant, with its significant influence and close relationship with Tata Group, allegedly pushed for the discussions to be halted. Apple is considered a priority for Tata Group, particularly as the Indian government is keen on establishing India as a major production hub for Apple products.
Tata Group’s Shift in Focus
As a result of these dynamics, Tata Group is expected to withdraw from the alleged $125 million deal with Vivo and instead concentrate on its existing production commitments for Apple. This includes not only the manufacturing of iPhones but potentially other Apple devices in the future. While the details of the negotiations between Tata Group and Vivo may remain unclear, it is evident that Apple’s manufacturing ambitions in India have influenced Tata Group’s business decisions within the same sector.
The Bigger Picture
This situation underscores the growing importance of India as a manufacturing base for global tech giants like Apple, which is likely to have broader implications for the country’s industrial landscape. Apple’s strategic positioning and the Indian government’s support for its production efforts appear to have outweighed Vivo’s interests, illustrating the competitive challenges faced by other companies in the market.
