2023-05-22 18:26:55
Taiwanese electronics manufacturing company Wistron is selling its factory in the city of Kolar (near Bengaluru), in Indiafor the Tata Group. The facility was responsible for assembling devices from the Apple since 2017 and, more recently, took care of the final production process of the third generation iPhones 12, 13, 14 and SE.
The reasons for giving up operating on Indian soil were the company’s lack of adaptation to the country and, in particular, the supplier’s inability to get keep any rate of profit — despite good timing for manufacturing Apple products in India.
How did you remember the AppleInsideroperations were already being scaled back and have now been shut down, with Wistron set to focus on its factories in Vietnam and Mexico.
The lack of adaptation that the company faced refers to several aspects of the business. Initially, the factory was unable to successfully integrate into Apple’s supply chain, lacking the necessary systems to satisfactorily meet Apple’s demand.
During the pandemic, for example, the greatest demand was for device components, something related to the initial stages of the manufacturing process. Being in a less profitable activity, other difficulties such as less access to credit and the unwillingness to operate for a longer time to achieve higher profit margins also made Wistron close its activities in India.
Wistron was responsible for the last manufacturing stage, in which the final product is assembled, not having been able to negotiate high profit margins with Maçã, considering its smaller size than competitors such as Foxconn e Pegatron. Disproportionate competition was also one of the reasons that hindered the automaker’s position, in addition to making no sense to have factories in India and Vietnam at the same time, since both countries have a free trade agreement.
Another issue in relation to adaptation concerns the company’s workers, who have even rioted in the past. According to Economic Timesthe supplier did not know how to deal with the Indian work culture, which is quite different from that found in countries like China.
The Kolar unit is also more than 40 kilometers from the nearest urban area, something that makes finding people to work there even more difficult. There was also a high turnover of employees; since the start of the takeover of the plant by the Tata Group, at least 20 people in leadership positions have already left the company.
The new owner of the factory is already testing the manufacture of the “iPhones 15”, which should be assembled there. Wistron will still maintain a repair unit in India, which it has operated since 2008 and has more favorable profit statistics for the company than its former factory.
1684832549
#Wistron #shuts #iPhone #production #India #sells #factory
