In a surprising move, one of Apple’s significant vendors, Wistron, is winding up its business in India and has reportedly sold its Bengaluru plant to the Tata Group. The discussions between Tata Group and Wistron for this transaction took place in 2022. According to a report by the Economic Times, Wistron was the first Apple vendor to commence manufacturing operations in India back in 2017. However, the Taiwanese manufacturer’s inability to integrate further into Apple’s supply chain is said to be the reason behind its fate.
This exit comes at a time when Apple has been reported to have tripled its iPhone manufacturing in India, and competitors like Foxconn and Salcomp have made significant investments to boost production. Wistron has faced numerous challenges at its Bengaluru unit since violence erupted in 2020 over pay gaps and delays. Acknowledging the flaws in its system, the manufacturer lost new contracts from Apple. In response, Apple announced that Wistron would not receive any fresh orders until the matter was adequately addressed. The company assured that independent auditors, along with Apple employees, would closely monitor Wistron’s progress, with the primary objective of ensuring dignified treatment and prompt compensation for all workers.
Meanwhile, Apple CEO Tim Cook has shown a keen interest in the Indian market for some time, expressing his bullish outlook on the country. Recently, Apple opened two standalone stores in India and had a meeting with Prime Minister Narendra Modi to discuss increasing production within the country. The Indian government has been actively encouraging Apple to scale up its manufacturing efforts in alignment with the ‘Make In India’ initiative.
In contrast to Wistron’s exit, its competitors Salcomp and Foxconn have strengthened their positions within Apple’s Indian ecosystem. Telangana’s IT Minister KT Rama Rao announced on Twitter that Foxconn plans to invest around $500 million to establish a manufacturing facility in Telangana’s Kongar Kalaan, further solidifying its commitment to the Indian market.