{"id":1245796,"date":"2023-05-24T08:33:34","date_gmt":"2023-05-24T03:03:34","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1245796"},"modified":"2023-05-24T08:34:08","modified_gmt":"2023-05-24T03:04:08","slug":"apple-manufacturer-has-suddenly-stopped-making-iphones-in-india-find-out-why","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/apple-manufacturer-has-suddenly-stopped-making-iphones-in-india-find-out-why\/","title":{"rendered":"Apple Manufacturer Has Suddenly Stopped Making iPhones In India: Find Out Why?"},"content":{"rendered":"\n<p>Apple supplier Wistron has reportedly shut down iPhone production in India, says a report by Economic Times.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/05\/Untitled-design-2-1-1280x720-1-1024x576.jpg\" alt=\"Apple Manufacturer Has Suddenly Stopped Making iPhones In India: Find Out Why? \" class=\"wp-image-1245808\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/05\/Untitled-design-2-1-1280x720-1-1024x576.jpg 1024w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/05\/Untitled-design-2-1-1280x720-1-300x169.jpg 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/05\/Untitled-design-2-1-1280x720-1-768x432.jpg 768w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2023\/05\/Untitled-design-2-1-1280x720-1.jpg 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>Profitability<\/strong><\/p>\n\n\n\n<p>Reportedly Wistron was struggling to make profits in the region under Apple\u2019s terms.&nbsp;<\/p>\n\n\n\n<p>The latter is currently holding trials for assembling upcoming iPhone 15 models in India.<\/p>\n\n\n\n<p>The manufacturer was unable to turn around profits from its Apple India business.<\/p>\n\n\n\n<p>Wistron, being a small player compared to Foxconn and Pentagon, encountered difficulties in achieving profitability.<\/p>\n\n\n\n<p>It had tried to negotiate with Apple for higher margins, but being a smaller player compared to Foxconn and Pegatron globally, it did not have the necessary leverage.<\/p>\n\n\n\n<p><strong>Major Apple manufacturing hub<\/strong><\/p>\n\n\n\n<p>In India till now Apple iPhones are manufactured by three major Apple suppliers &#8211; Foxconn, Pegatron and Wistron.<\/p>\n\n\n\n<p>The country accounted for seven percent of Apple&#8217;s iPhone production in 2022.<\/p>\n\n\n\n<p>Wistron entered the Indian market in 2008, starting by setting up a repair facility for various devices it manufactured, including PCs, laptops, and servers.<\/p>\n\n\n\n<p>It then expanded its operations in 2017 to begin manufacturing iPhones for Apple.<\/p>\n\n\n\n<p><strong>Key reasons behind exit<\/strong><\/p>\n\n\n\n<p>But its inability to get deeper into Apple\u2019s supply chain&#8211;component manufacturing and vendor-managed inventory holding\u2014is one of the key <a href=\"https:\/\/m-economictimes-com.cdn.ampproject.org\/c\/s\/m.economictimes.com\/tech\/technology\/wistron-exits-apple-india-biz-after-tripping-over-scale-work-culture\/amp_articleshow\/100401616.cms\">reasons <\/a>behind it exiting India, the world\u2019s second largest smartphone market.<\/p>\n\n\n\n<p>Wistron\u2019s exit comes as the other contract makers double down on India.<\/p>\n\n\n\n<p>A TrendForce report earlier this month said that Apple may manufacture iPhone 15 and iPhone 15 Plus models in India.<\/p>\n\n\n\n<p><strong>Tata enters the game<\/strong><\/p>\n\n\n\n<p>It stated that the handsets will be assembled by Tata Group.<\/p>\n\n\n\n<p>The report further added that Tata\u2019s entry into the iPhone assembly business translates to Wistron\u2019s exit from the country<\/p>\n\n\n\n<p>Tata Group has already purchased Wistron\u2019s iPhone assembly unit in Kolar, near Bengaluru.<\/p>\n\n\n\n<p>An executive was cited saying that Wistron lacked effective systems to gauge demand and ship products to various units.<\/p>\n\n\n\n<p><strong>Labour management issues<\/strong><\/p>\n\n\n\n<p>It also faced management challenges and reportedly struggled to retain workers at its facility in Kolar.<\/p>\n\n\n\n<p>Differences in work culture between China and India also contributed to the challenges faced by the company.<\/p>\n\n\n\n<p>Violence had broken out at the newly opened Kolar unit in December 2020 as workers protested against allegedly unpaid wages and arduous hours.<\/p>\n\n\n\n<p>This cost the company about Rs 430 crore in damages.<\/p>\n\n\n\n<p>Apple put the manufacturer on probation, halting the unit until corrective measures were taken.&nbsp;<\/p>\n\n\n\n<p>It resumed work in February 2021.<\/p>\n\n\n\n<p><strong>Foxconn<\/strong><\/p>\n\n\n\n<p>Meanwhile, fellow Apple supplier Foxconn has <a href=\"https:\/\/www.livemint.com\/technology\/tech-news\/apple-supplier-wistron-stops-making-iphones-in-india-report-says-11684829975263.html\">bought <\/a>a huge tract of land on the outskirts of Bengaluru.&nbsp;<\/p>\n\n\n\n<p>The company has purchased a 1.2 million-square-metre (13 million-square-foot) land in Devanahalli, near the Bengaluru airport.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Apple supplier Wistron has reportedly shut down iPhone production in India, says a report by Economic Times. Profitability Reportedly Wistron was struggling to make profits in the region under Apple\u2019s terms.&nbsp; The latter is currently holding trials for assembling upcoming iPhone 15 models in India. The manufacturer was unable to turn around profits from its [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":1245808,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[279,1628],"class_list":["post-1245796","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-iphone","tag-wistron"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Apple Manufacturer Has Suddenly Stopped Making iPhones In India: Find Out Why? - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/apple-manufacturer-has-suddenly-stopped-making-iphones-in-india-find-out-why\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Apple Manufacturer Has Suddenly Stopped Making iPhones In India: Find Out Why? - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"Apple supplier Wistron has reportedly shut down iPhone production in India, says a report by Economic Times. Profitability Reportedly Wistron was struggling to make profits in the region under Apple\u2019s terms.&nbsp; The latter is currently holding trials for assembling upcoming iPhone 15 models in India. 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