Last Updated: May 22, 2023, 7:05 PM IST
Apple iPhones are made in India but only assembled
Tata Group has bought the Wistron plant in India according to reports where it will start assembly of the iPhone 15 models.
Apple is making a broad set of changes to its global production lines outside of China with India as one of its main focus markets. Recently it was confirmed that Tata Group is ready to enter the make in India iPhone arena by acquiring the plant from another iPhone vendor Wistron in India.
But now, a report by ET suggests Wistron was more than happy to end its association with the iPhone maker, as Apple reportedly did not allow the vendor to make profit. Sources from Wistron quoted in the report say Wistron did not see any long-term benefit of assembling the final product, in this case the iPhone.
“Wistron has not been able to make any money from the Apple business in India. It has tried to negotiate with Apple for higher margins, but being a smaller player as compared to Foxconn and Pegatron globally, it did not have the necessary leverage,” the executive said in the report.
The report also says Wistron has been looking to exit the business, and with Tata Group now ready to enter the assembling roster, Wistron feels the India business became too small for its focus after the company also sold a similar unit in China earlier. Apple already has multiple partners for assembling the iPhones in India, and the Tata Group is soon expected to start preparing for the assembly of the upcoming iPhone 15 models.
Wistron exiting the business is unlikely to put a major dent in Apple’s production plans in the country but now the iPhone maker would be hoping that the rumoured Tata Group setup (via the acquired Wistron plant) is up to speed with its demands and deliver products at its global standards.
Apple has started pivoting away from China and sees markets like Vietnam and India as the ideal alternatives, with industry reports suggesting that by 2027, Apple will have a quarter of its global iPhone production rolling out of India. Apple clearly demands high standards and now the onus is on Tata Group to show that it can match up with the global giants like Foxconn and Pegatron in its mission to become a production source for global brands.
