Apple Inc.’s move to suspend new business to supplier Wistron, the first to assemble iPhones in India, has given an unexpected lift to rival suppliers Foxconn and Pegatron, who are angling to capture a larger share of the iPhone maker’s orders as well as from other companies. An initial investigation by Apple into the rioting at Wistrons India plant discovered management lapses by the Taiwanese company that led to delays in salaries to some workers, Apple said on 19 December, adding that it won’t give additional work to the company until the problems are addressed.
The developments have left a cloud of uncertainty over Wistron, which sold a part of its business in China to focus on India. On the same day, Wistron’s headquarters in Taiwan took control of key decisions in India and removed its vice-president who was overseeing the business in India. The company acknowledged payment issues to workers and initiated a restructuring exercise. The fiasco at the factory near Bengaluru has happened at a time Foxconn, one of the three contract manufacturers of iPhones, is looking to invest more to expand its factory in Tamil Nadu, and Pegatron is set to open its first plant in India. In November, Pegatron said its board approved a ₹1,100 crore investment in India as part of its long-term investment plan. Its Indian subsidiary was incorporated in July and is among the 16 global and Indian mobile handset makers that got approval in October to start manufacturing under the government’s production-linked incentive scheme.
Courtesyg: Google (photo)
