Wistron fails to get Apple to increase profitability of its

Wistron fails to get Apple to increase profitability of its iPhone production in India and will sell it to Tata Group

It has been revealed that Taiwanese company Wistron will sell its iPhone assembly plant in India to local conglomerate Tata Group. This decision is due to low profit margins as well as the fact that Wistron’s management methods deviate from the cultural and social norms prevailing in India.

According to DigiTimes, Wistron is still in talks with Tata about selling the iPhone business. Still, Tata’s representatives have already taken key management positions at Wistron, suggesting the deal is close to completion.

It is noted that Wistron is a smaller iPhone maker than Foxconn and Pegatron, which is why the company cannot generate the desired profit. “Wistron failed to benefit from Apple’s India deal. It tried to negotiate higher margins with Apple, but as a smaller player compared to Foxconn and Pegatron in the global market, it didn’t have the leverage it needed.– The Indian edition of the Economic Times reports on the words of one of the leaders.

The report also said that Wistron does not understand the local work culture, which involves a more balanced work schedule instead of 24/7 production as is the case in China and Taiwan.

In 2020, Wistron sold its iPhone assembly facilities in China to Luxshare as part of a group-wide restructuring and business realignment. At the Wistron plant in Kolar, India, the iPhone SE, iPhone 12 and iPhone 14 are assembled at the company’s facilities. It is also rumored that Tata, which will become the new owner of this company, will receive 5% of the total order volume for the production of the iPhone 15 and iPhone 15 Pro, which will be launched later this year.


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Johnson Smith

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